COMMUNITIES AND LOCAL
GOVERNMENT News Release (144) issued by The Government News Network
on 1 August 2007
A NEW system to
help homebuyers get green grants worth hundreds of pounds to lower
their fuel bills and make their homes greener has been announced
today, linked to the introduction of Home Information Packs and
Energy Performance Certificates.
Most people are unaware that there are typical grants of £100 to
£300 grants for cut price loft and cavity wall insulation. The
programme is expanding next year so even more home buyers will be
able to benefit from hundreds of pounds off insulation.
Measures recommended in the EPC could save the average consumer
£300 a year off their fuel bills, according to the Energy Saving Trust.
With EPCs (Energy Performance Certificates) being introduced
today - giving home-buyers a home energy rating, the system will
make it easier for consumers to get grants to make the
improvements recommended in the certificates.
For the first time, the six major energy companies have agreed
that when buyers move into their home and sign up to an energy
contract they will get immediate access and information about
'green' grants or offers to consumers. This follows
talks with the Government and will help them make their home more
environmentally friendly and cut fuel bills.
In addition, the scheme will include a new portal on the Energy
Saving Trust's website where consumers only need to tap in
their postcode to find details of offers available. Once fully
rolled out it is estimated that the energy certificates would save
nearly a million tonnes of carbon per year by 2020.
Consumers who choose to give details from their EPC to suppliers
will also receive targeted offers for recommendations in their
certificate. This information will not be used for any other
purpose and cannot be given to anyone else by the supplier.
The offers are funded by energy suppliers and other partners,
with their investment in 'green grants' increasing to
£2.5 billion over the next three years from April 2008, compared
to £1 billion over the last three years.
EPCs are being introduced today as part of Home Information
Packs, starting with four bedroom homes and above. The
certificates will give consumers energy ratings for homes of A-G,
similar to consumer friendly fridge ratings.
A snapshot of leading estate agents shows that most will offer a
HIP for around £300 to £350 plus VAT - £200 to £250 of which is
already paid for in the current system.
Some estate agents will be offering them for free or as part of
their ordinary fees.
The introduction of HIPs is already leading to search prices
coming down for consumers, with nearly fifty local authorities
having already reduced what they charge consumers for searches, in
some cases by more than £100.
Increased competition and transparency as result of HIPs is
expected to reduce costs further.
The Government will monitor HIPs closely to ensure the benefits
are being passed on to the consumer, with a new consumer panel
being set up as part of a wider programme of action to make the
home buying and selling process work in the interests of consumers.
The introduction of HIPs in August when the market is normally
quieter, with fewer homes for sale, will help to support the
smooth transition.
Housing Minister Yvette Cooper said:
"Energy certificates have the potential to cut family fuel
bills by hundreds of pounds. But it can still be a real hassle
getting the work done. Most people don't know these grants
are available or don't know how to apply for them. This means
it should be much easier for homebuyers to get help to cut their
fuel bills and carbon emissions too. It could save hundreds of
pounds on insulation and hundreds off pounds on their fuel bills too."
Philip Sellwood, Chief Executive of the Energy Saving Trust, said:
"Our Green Barometer shows that more than half of people
want tailored advice on energy saving. Energy Performance
Certificates will make it easier for people to identify the simple
things they can do in their home to reduce their energy
consumption. More people will be reached now that energy
companies are being proactive in providing information to
householders on grants available to them."
Friends of the Earth campaigner Dave Timms said:
"We're delighted that Energy Performance Certificates
are finally up and running. EPCs will give homeowners information
which, if they act on it, will help them tackle climate change and
save money on home energy bills."
Paul King, Chief
Executive of the UK-BC (Green Building Council), has said:
"It's really very simple. We will fail to prevent the
worst effects of climate change unless we make huge improvements
to the energy efficiency of our existing homes. The new Energy
Performance Certificates provide an essential tool for doing this.
By showing people, for the first time, how their homes rate in
terms of energy consumption, and giving them user-friendly advice
about the most cost-effective ways of improving their performance,
we can all be equipped to do something meaningful to tackle
climate change."
Notes to Editors
1. Gas and electricity companies are already required by
government to help people reduce their energy use in the home.
2. At least 10 million households received energy efficiency
measures under the first phase of the Energy Efficiency Commitment
(2002-05), which increased the number of people installing loft
and cavity wall insulation, low energy light bulbs and energy
efficient products. The first phase of the scheme has stimulated
£600m of investment in energy efficiency and delivered net
benefits to householders in excess of £3 billion.
3. Under the current phase of the scheme, where the targets have
roughly doubled, 800,000 households have already received cavity
wall insulation. The next phase of the commitment, that will run
from 2008 - 2011, is expected to cut carbon emissions by 1.1
million tonnes and will save consumers £10 billion in energy savings.
4. The current obligation on energy suppliers is called the
Energy Efficiency Commitment (EEC). Under EEC, household energy
suppliers have an obligation to promote household measures to
achieve a target level of energy savings.
5. EEC has been very successful at driving the cost-effective
delivery of measures such as loft and cavity wall insulation, low
energy lamps and efficient appliances. EEC phase 1 (which ran from
2002 - 2005) stimulated about £600m investment in energy
efficiency and delivered net benefits to householders in excess of
£3billion. EEC2 (2005-08 ), which is called the Carbon Emissions
Reduction Target, requires broadly double the level of activity of
EEC1 and is expected to deliver 0.5 MtC annually in 2010.
Additional quotes from energy suppliers:
Paul Golby, Chief Executive of E.ON UK said:
"E.ON UK supports the introduction of EPCs as a means of
getting energy efficiency measures into customer's homes and
hence lowering UK carbon emissions. All Powergen customers that
have an EPC done after the 1st August should contact us to support
them in improving the energy efficiency of their homeE.ON UK is
currently examining how we can become more active in the energy
certificate market."
Sam Laidlaw, Chief Executive of Centrica plc, which owns British
Gas, said:
"UK homes account for more than a quarter of all carbon
emissions generated in this country so ensuring they are energy
efficient will play a vital role in helping the UK achieve its CO2
emission reduction targets. We fully endorse the introduction of
EPCs as a means of facilitating this. We are committed to a
programme of training fully accredited domestic energy assessors
to assist delivery of the initial phase of EPC implementation and
will work with customers that wish to act on their EPC with
targeted energy efficiency improvements. These improvements will
be particularly helpful to first-time buyers and those moving into
homes with poor energy efficiency ratings."
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