The ultimate guide to the Energy Bill
The coalition’s Energy Bill had its second reading in the House of Commons this week. The bill is designed to improve the provision of energy efficiency measures to homes and businesses, and bolster the UK’s ability to deliver low carbon energy supplies.
The government said that the Bill is just the first step in a legislative energy plan which will also seek to implement the findings of the Electricity Market Reform Programme at a later date.
BusinessGreen takes a look at the top 10 outcomes the Bill aims to achieve.
1 Establishing the Green Deal
The Green Deal aims to create a new financing framework for improving the energy efficiency of households and business properties, funded by a charge on energy bills at a later date.
The scheme is designed so that estimated savings on bills will always equal or exceed the cost of the work, so in effect the domestic or business consumer saves money.
In order to meet carbon budgets, the Department of Energy and Climate Change (DECC) says that we need to cut emissions in our homes and communities by 29 per cent, and by 13 per cent in our workplaces, by 2022 against 2008 levels.
The department also hopes that the supply chain for energy efficiency measures could support 100,000 UK jobs within five years.
The government will accredit firms such as double glazing and insulation specialists that apply to become licensed installers under the scheme.
Business and homeowners will apply for the scheme by approaching a licensed Green Deal provider for a free assessment.
Firms with questions on the scheme can email green.deal@decc.gsi.gov.uk.
2 The Green Deal for the private rented sector
Policymakers are concerned that the Green Deal may not be effective in improving the energy efficiency of buildings in the private rented sector because of a fragmented business case; tenants pay bills, but landlords are responsible for any home improvements.
As such, Energy and Climate Change Secretary Chris Huhne yesterday announced that, from April 2016, landlords will not be able to refuse “reasonable requests” from tenants, or local authorities acting on behalf of tenants, calling on them to use the Green Deal to improve their property.
He also revealed that the Bill will make it illegal from April 2018 for landlords to rent out a house or business property that has less than an E energy efficiency rating.
DECC said that the deadline would ensure that at least 682,000 properties will be improved.
3 Energy company obligation
The Bill will give the government power to create a new obligation on energy companies to reduce emissions.
Existing powers in the Gas Act 1986, Electricity Act 1989 and the Utilities Act 2000 have created the Carbon Emissions Reduction Target and the Community Energy Saving Programme, both of which expire at the end of 2012 and need to be replaced.
The obligation will also underpin the Green Deal by requiring energy companies to to provide additional assistance to those in homes and businesses where the Green Deal will cost more than it saves.
4 Smart meters
The Coalition Agreement committed the two parties to the establishment of a smart grid and the nationwide rollout of smart meters. The Energy Bill will help them to deliver smart meters by extending the provisions of the 2008 Energy Act to 2018, allowing the Secretary of State to continue to dictate the licensing and technical requirements of a rollout.
In 2010, DECC and Ofgem consulted on proposals for the design of a delivery model, the development of technical specifications for meters, and a wide range of other issues including consumer protection and data privacy issues.
Last month, the government published its response to the consultation, saying it expects a full rollout to get underway by 2014.
5 Energy Performance Certificates
The Energy Bill will make the emissions performance data of households and businesses more widely available.
The Bill will amend the Energy Performance of Buildings Regulations 2007, which restricts access to the data. Under current rules it can be seen only by owners, operators of accreditation schemes, and government officials.
The new Bill will make energy performance data from Energy Performance Certificates, Display Energy Certificates and Air Conditioning Reports freely available online.
This will enable Green Deal suppliers to better market their services, improve public awareness of energy performance issues, and allow for better research and analysis.
By Tom Young
The government said that the Bill is just the first step in a legislative energy plan which will also seek to implement the findings of the Electricity Market Reform Programme at a later date.
BusinessGreen takes a look at the top 10 outcomes the Bill aims to achieve.
1 Establishing the Green Deal
The Green Deal aims to create a new financing framework for improving the energy efficiency of households and business properties, funded by a charge on energy bills at a later date.
The scheme is designed so that estimated savings on bills will always equal or exceed the cost of the work, so in effect the domestic or business consumer saves money.
In order to meet carbon budgets, the Department of Energy and Climate Change (DECC) says that we need to cut emissions in our homes and communities by 29 per cent, and by 13 per cent in our workplaces, by 2022 against 2008 levels.
The department also hopes that the supply chain for energy efficiency measures could support 100,000 UK jobs within five years.
The government will accredit firms such as double glazing and insulation specialists that apply to become licensed installers under the scheme.
Business and homeowners will apply for the scheme by approaching a licensed Green Deal provider for a free assessment.
Firms with questions on the scheme can email green.deal@decc.gsi.gov.uk.
2 The Green Deal for the private rented sector
Policymakers are concerned that the Green Deal may not be effective in improving the energy efficiency of buildings in the private rented sector because of a fragmented business case; tenants pay bills, but landlords are responsible for any home improvements.
As such, Energy and Climate Change Secretary Chris Huhne yesterday announced that, from April 2016, landlords will not be able to refuse “reasonable requests” from tenants, or local authorities acting on behalf of tenants, calling on them to use the Green Deal to improve their property.
He also revealed that the Bill will make it illegal from April 2018 for landlords to rent out a house or business property that has less than an E energy efficiency rating.
DECC said that the deadline would ensure that at least 682,000 properties will be improved.
3 Energy company obligation
The Bill will give the government power to create a new obligation on energy companies to reduce emissions.
Existing powers in the Gas Act 1986, Electricity Act 1989 and the Utilities Act 2000 have created the Carbon Emissions Reduction Target and the Community Energy Saving Programme, both of which expire at the end of 2012 and need to be replaced.
The obligation will also underpin the Green Deal by requiring energy companies to to provide additional assistance to those in homes and businesses where the Green Deal will cost more than it saves.
4 Smart meters
The Coalition Agreement committed the two parties to the establishment of a smart grid and the nationwide rollout of smart meters. The Energy Bill will help them to deliver smart meters by extending the provisions of the 2008 Energy Act to 2018, allowing the Secretary of State to continue to dictate the licensing and technical requirements of a rollout.
In 2010, DECC and Ofgem consulted on proposals for the design of a delivery model, the development of technical specifications for meters, and a wide range of other issues including consumer protection and data privacy issues.
Last month, the government published its response to the consultation, saying it expects a full rollout to get underway by 2014.
5 Energy Performance Certificates
The Energy Bill will make the emissions performance data of households and businesses more widely available.
The Bill will amend the Energy Performance of Buildings Regulations 2007, which restricts access to the data. Under current rules it can be seen only by owners, operators of accreditation schemes, and government officials.
The new Bill will make energy performance data from Energy Performance Certificates, Display Energy Certificates and Air Conditioning Reports freely available online.
This will enable Green Deal suppliers to better market their services, improve public awareness of energy performance issues, and allow for better research and analysis.
By Tom Young
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