Taking stock
Study raises concerns over
EU ban on discarding
unwanted fish P6
Solar flare-up
Government slams door
shut on subsidies for solar
farms P13
GreenWeek Extra
All the latest research and
analysis from the low-carbon
frontline P15-17
GreenWeek
ClickGreen’s review of all the week’s news, views, research and analysis with a focus on low carbon and sustainability
Volume 29: May 16, 2014
DECC defers plans to switch
Green Deal costs on to industry
Ministers give ailing scheme time before introducing raft of new charges
By Stuart Qualtrough
nergy Ministers have
e temporarily shelved
plans to pass the costs
of the Green Deal scheme
on to the struggling industry,
GreenWeek can reveal.
Officials at the Department of
Energy and Climate Change (DECC)
had ordered a review into how they
could offload some of the running
costs of the ailing programme onto
registered assessors and installers.
According to the original plans,
the proposed fees could have been
introduced as early as next month.
The programme’s regulator
Gemserv was requested to prepare
and market test a price structure
that was designed to shift the
burden from the taxpayer-funded
budget to Green Deal companies.
However, because the energy
efficiency scheme has undershot its
initial targets officials have now
agreed to defer introducing the
payment framework at this stage.
In March, ClickGreen revealed
the Green Deal scheme has cost
more to operate than it hands out
to consumers.
Analysis of the previous 10
months of Ministers’ spending
found the Government had paid
£44,586 a month in administration
costs for EACH of the 746 homes
registered on the Green Deal
scheme.
The figures contained within
DECC’s monthly departmental
Green Deal industry expected to pay fees for programme costs
spend revealed civil servants had
managed to blow a staggering
£33.2 million on the Government’s
flagship green scheme.
Details of the proposed charging
structure for the industry were
originally contained within the
contract signed between DECC and
Gemserv in June 2012.
A spokesperson for DECC
confirmed this week: “This was an
option included in the contract to
enable a change in funding stream,
from Government funding to Green
Deal companies, which could be
introduced as the market developed.
“We want to help the market to
grow and don’t therefore intend to
introduce fees for Green Deal
companies at this stage.”
In an attempt to make the
scheme appear more attractive to
potential consumers, The Green
Deal Finance Company, the notfor-profit mutual established to
finance and administer Green Deal
We want to help the
market to grow and
don’t therefore intend
to introduce fees for
Green Deal companies
at this stage
DECC spokesperson
Plans, announced the removal
with immediate effect of early
repayment charges on all future
Green Deal Plans.
Consumers have the right to
early repayment of their loan, in
full or in part at any time. However,
under the current provisions in the
Consumer Credit Act, a procedure
allows the Green Deal Providers to
claim compensation for costs
incurred as a result. Such charges
are commonplace with mortgages
and with some other financial
service products.
No early repayment charges
have so far been levied on Green
Deal Plans and the GDFC will
encourage GDPs to look
favourably at waiving early
repayment charges that might
apply to plans already purchased.
The removal of the potential
charge forms part of a simplification
package to help Green Deal
Providers and is a result of a
so-called “listening exercise” with
consumer organisations.
Mark Bayley, Chief Executive of
the Green Deal Finance Company,
said: “I am delighted that we are
able to remove early repayment
charges on Green Deal Plans at
such an early stage in the life of
the Green Deal.
“This action is in direct response
to views raised with us, and will
make Green Deal Plans an even
more attractive, accessible and
predictable proposition for energy
saving home improvement.”