Energy minister outlines retrofit scheme

Speaking yesterday at the Economist UK Energy Summit, Chris Huhne said his plans for cutting carbon emissions from homes would be his department’s ‘flagship bill’ for the new parliament.

High street shops and energy companies will pay for energy-efficiency improvements to homes, which householders will pay back from the savings they make through lower fuel bills. The new legislation will also change the supplier obligations placed on energy companies.

Mr Huhne said the scheme would mean landlords would not find themselves paying for improvements to their homes which would only benefit their tenants financially. He said: ‘The green deal – by tying energy saving to the people who pay the energy bills – will be a breakthrough not just for owners but for tenants as well.

‘We are also looking at whether it could apply to businesses. To sustain the market on the long march to a comprehensive refit of our housing stock, we are also looking at triggers and incentives to encourage demand.’

He also promised extra help through supplier obligations for families in fuel poverty and those in hard-to-heat homes where the savings on bills would not be enough. Councils will help target the most vulnerable fuel customers.

He said: ‘The market is big. There are currently up to 14 million homes in the UK which could benefit from insulation under the green deal. We are working on the package for each home, which could unlock tens of billions of spending in the coming years.

‘The green deal is a completely new and ambitious approach to home insulation. The aim is that every participating householder will save money by insulating their home.’

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