Blind to the obvious

It seems incredible that at a time when energy prices have hit consumers hard in their pockets so little is being done to boost energy efficiency. Indeed, the situation might even be getting worse.

The third phase of the Energy Company Obligation came to an end in March. Undertaken by energy suppliers, the scheme has installed more than 3.5m improvements such as loft insulation in 2.4m properties and reduced household gas demand by 20 per cent. Each home saves at least £600 per year, a figure that can only increase. Now, over 56,000 of the poorest households are facing long waits for home energy improvements because of delays in introducing the fourth phase.

Ever since ECO3 ended no new work has been undertaken because, despite concluding a consultation on minor changes last summer, the Business Department has failed to prepare the legislation necessary to reflect these changes before Parliament. There is now a growing suspicion that the Government is bending to a group of backbenchers who have been calling for the scheme to be dropped because of its increased cost to suppliers.

The CBI and many other figures also highlighted the lack of additional funding support in the Chancellor’s recent emergency support package announcement to help upgrade draughty homes with insulation and other measures, with experts have repeatedly pointed out would help to drive down bills, cut greenhouse gas emissions, and offer a boost to the fledgling retrofit market.

“A street-by-street retrofit revolution to reduce energy demand and help slash energy bills in the long-term was also shamefully absent from the Chancellor’s statement,” said Green Party MP Caroline Lucas.

Her comments were echoed by many across the business community, including KPMG’s vice chair and head of energy and natural resources Simon Virley. “Energy efficiency remains the most cost-effective way to get bills down permanently.”

Meanwhile, climate change think tank E3G pointed out that new tax relief for companies that invest in oil and gas production could have insulated 2m homes. The new measures commit the government to a subsidy of up to £5.7bn for investment in oil and gas in the next three years. This “lost revenue”, said E3G, could have instead supercharged an energy efficiency drive with an average bill saving of £342 per household every year.

When almost every sane voice is calling for more investment in energy efficiency it beggars belief that the Government could be so deaf to the virtues of energy efficiency.

 

• Mark Thrower, Managing Editor