The UK Energy Secretary, Amber Rudd MP, has announced yet another energy cut, this time to the government’s home energy efficiency strategy, the Green Deal. Although the scheme has been heavily criticised for its somewhat clumsy implementation, British businesses have nevertheless invested considerable sums in preparing for the strategy and it was, albeit slowly, beginning to attract customers. On 23rd July, that all ended with Ms Rudd’s announcement that there would be no further public funding for Green Deal Finance Company (GDFC), the body at the heart of the scheme which provides finance for homeowners to install energy efficiency measures such as insulation and solar panels.
Ms Rudd also said that the government does intend to work with industry and consumer groups on a new energy efficiency approach. Despite the cuts, Ms Rudd also maintained that the Conservatives are “committed to action on climate change”.
However, following the announcement of at least two cuts in green energy by Rudd, including the Green Deal, and several more by the Chancellor, George Osborne, Friends of the Earth have accused the Conservatives of dismantling 10 years’ worth of low-carbon policies.
“This is grotesque hypocrisy from a government that has spent the past few weeks dismantling an architecture of low-carbon policies carefully put together with cross-party agreement over the course of two parliaments” said Craig Bennett, head of Friends of the Earth, speaking to BBC News. “They have swept it all away without signalling their intent in their manifesto. They have no mandate for this - it's David Cameron sticking up two fingers to other nations at the climate conference in Paris. Unbelievable.”
The criticism was echoed by Greenpeace, which said it was “deeply shocked by the vandalism of the government which appears to be driven totally by ideology.” The NGO further accused the government of destroying the UK renewables industry just at the point where it’s almost competitive.
The National Insulation Association (NIA) has responded to the announcement, saying that while the Green Deal could have been improved upon, to put an end to the scheme and the Green Deal Home Improvement Fund (GDHIF) so suddenly, without warning, without any planned replacement, is a major issue and concern for both householders and the supply chain.
Recent figures published by the Department for Energy and Climate Change (DECC) on the Energy Company Obligation (ECO) show that energy companies have made significant progress towards their ECO2 targets and that the installation rates in 2014/15 could have helped the target to have been reached a year early. The NIA says that the Green Deal and GDHIF provided an important means of supplementing ECO activity, which means that their removal is a major body blow for both householders and the industry.
“DECC are aiming to develop and establish a more stable, long-term, coherent framework for home energy efficiency, we welcome Amber Rudd’s announcement that she wants to work with industry in doing this and we look forward to contributing towards it” said Neil Marshall, the NIA’s chief executive. “However, the decision to pull Green Deal and GDHIF without first developing alternatives will seriously undermine consumer confidence and also the confidence of industry and its ability and willingness to support whatever replacement framework is developed.”
Mr Marshall urged the Secretary of State to set out a clear timeline for the delivery of the proposed new framework as soon as possible in order to provide much needed clarity for consumers and the industry, while putting in place an urgent transitional mechanism to fill the void left by Green Deal and GDHIF and help address the current hiatus whilst the new framework is developed.
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