Energy Companies 'could Be Offered Insulation Incentives'

Online, December 27, 2013 (Newswire.com) - The UK's big six energy providers could be about to receive a range of new incentives from the government aimed at boosting the number of households receiving home insulation improvements over the coming months.

Richard Twinn, policy and public affairs officer at the UK Green Building Council, told BusinessGreen: "The government is trying to keep the supply chain in place and stop jobs being cancelled.

"But it is something of a concern because this would just be giving away free carbon that won't be saved and it only compels companies to do a quarter of what they should be doing."

According to the news provider, the Department of Energy and Climate Change (DECC) is considering the introduction of a new 'carbon score multiplier' to include all insulation measures installed up to the end of March next year, allowing businesses to count these measures towards their overall goal.

The move follows a recent announcement from the DECC in the wake of the chancellor's Autumn Statement that has allowed utility providers to extend the budgets for the provision of home efficiency improvements for vulnerable members of society under the Energy Companies Obligation (ECO) by a further two years.

It is expected the multiplier will include a 1.75 uplift in the weighting of insulation improvements installed above 25 per cent of each individual company's targets, while weightings will be doubled if firms exceed 35 per cent by this date.

However, industry analysts believe the government has so far effectively weakened the UK insulation sector by reneging on original budget plans for the ECO scheme, placing in jeopardy not only hundreds of jobs across the green sector, but also reducing the likelihood that individuals currently struggling to meet their energy bills will receive timely help.

By March 2014, ECO will have reached more than its halfway point - running from January this year to March 2015 - meaning by this date companies should have delivered more than 50 per cent of their obligation, but it remains to be seen whether this will be the case.

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