Industry fears 鈥榮oft launch鈥 will undermine the energy efficiency scheme from the outset

The UK鈥檚 largest energy firms are pressing ministers to delay the launch of the Green Deal amid fears that a 鈥渟oft launch鈥 of the energy efficiency scheme could critically undermine its take-up from the outset.

The intense lobbying comes as the latest figures on another major government sustainability policy, the Renewable Heat Incentive (RHI), Industry figures blamed a lack of preparedness and publicity.

As 好色先生TV revealed last week, the six major energy firms - EDF, Scottish Power, Southern Energy, Npower, E.ON and British Gas - have told ministers they will not be ready to deliver the payment mechanism for the Green Deal until 鈥渇irst quarter 2013鈥.

A well-placed industry source said the energy firms were pressing ministers to delay the October launch as they feared that, unless all the elements of thescheme were in place, the Green Deal could be undermined from the outset.

鈥淭he firms want everything in place 100% end-to-end - they don鈥檛 want a soft launch. There should be no outstanding questions. That鈥檚 key to getting consumers on board,鈥 the source said.

The payment mechanism is critical to the operation of the Green Deal as it enables consumers to pay for energy efficiency measures through a charge on their energy bills.

Climate change minister Greg Barker insisted this week that the October launch of the Green Deal would go ahead as planned, stating that energy firms would have to have the payment mechanism in place from October as it was 鈥渢he law鈥.

But the Department of Energy and Climate Change (DECC) later confirmed this legislation was not in fact in place and would form part of the secondary legislation required to implement the Green Deal, which was initially set to be introduced last month, but has slipped to June.

A DECC spokesperson said the clause requiring firms to have the payment mechanism in place by October 鈥渨ould not be changed鈥.

She said the scheme would be launched 鈥渟teadily鈥.

NOT GETTING HEATED

Less than 1% of the extra renewable heat capacity needed this year to keep the government on track to meet its targets for its Renewable Heat Incentive scheme has been installed and accredited in the first three months of the programme.

Figures from Ofgem show that only 10 installations of renewable heat generators with a total capacity of 3.5MWh have been accredited since the scheme, which is currently only open to non-domestic installations, launched in November last year.

The government expects around 6.3 million MWh of capacity to be installed each year through to 2020.

ECOBUILD 20-22 MARCH