NEA responds to the National Audit Office (NAO) report into Green Deal and ECO
The NAO report rightly highlights the critical importance of continuing to improve domestic energy efficiency levels. In particular, the NAO recognise low income households’ health can be badly affected by living in a cold home and improving energy efficiency can generate other important national benefits. The report is also correct that the failure of the Green Deal could have been prevented (and tax payers money better spent) had the Government listened to key stakeholders’ feedback in the policy design phase. We are now working closely with the Government to improve successor schemes.
The report also illustrates how critical it is to accurately measure outcomes. The UK Government must respond by stating how the upcoming changes to the future phases of the GB-wide Energy Company Obligation scheme will impact on England, Wales and Scotland’s statutory fuel poverty targets. The report also correctly identifies why suppliers and the scheme administrator need to work more closely to limit and monitor capital contributions towards the cost of any energy efficiency work. NEA also continues to highlight a broader concern that the levy-funded supplier obligation cannot be relied upon overall as the sole way of improving energy efficiency levels. In order to address this concern and help control cost to energy consumers, the Government must learn from other UK nations who are overcoming an over-reliance on energy supplier-led assistance and continue to invest in additional, complimentary energy efficiency programmes.
The summary of the NAO report is available here: https://www.nao.org.uk/wp-content/uploads/2016/04/Green-Deal-and-Energy-Company-Obligation-Summary.pdf