The Energy Bill introduced to Parliament on 8 December 2010 includes provision for a new “Green Deal”. The Green Deal is targeted for introduction towards the end of 2012.
At a local level, the Green Deal will enable many households and businesses to improve the energy efficiency of their properties without consuming so much energy and wasting so much money. A quarter of the UK’s carbon emissions comes from the energy we use to heat our homes, and a similar amount comes from our businesses, industry and workplaces. At a national level, the UK needs to become more energy efficient to reduce its greenhouse gas emissions which risk dangerous climate change. The Climate Change Act 2008 legislated for a reduction in our carbon emissions, and set legally-binding carbon budgets across all sectors of the UK economy – including our homes and communities, and our workplaces.
There are a number of important consumer protections which will be embedded into the Green Deal which are detailed in this document. These include the following prerequisites for all Green Deal plans:
1. The expected financial savings must be equal to or greater than the costs attached to the energy bill, known as “the golden rule” of the Green Deal.
2. The measures must be approved and the claimed bill savings must be those accredited through this process.
3. The measures installed must have been recommended for that property by an accredited, objective adviser who has carried out an assessment.
4. The measures must be installed by an accredited installer.
5. For householders, the Green Deal provider must give appropriate advice within the terms of the Consumer Credit Act and take account of the individual circumstances of the applicant.
6. The Green Deal provider must have consent from the relevant parties, including the express consent of the current energy bill-payer.
7. The presence of a Green Deal must be properly disclosed to subsequent bill payers(e.g. new owners or tenants)alongside energy performance information.
8. Energy suppliers must collect the Green Deal charge and pass it on within the existing regulatory safeguards for collecting energy bill payments – including protections for vulnerable consumers.