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Green Deal questions fall on deaf ears |
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25 Sep 2012, 10:40 AM
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The fate of a new Government scheme hangs on one key question, which continues to fall on deaf ears, according to one industry professional. The energy industry has been watching as plans are laid for the roll out of the Government initiative which aims to tackle carbon reduction and climate change in the UK, the Green Deal.
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The scheme promises householders and businesses
up to £10,000 worth of energy efficiency improvements to their property for no upfront cost, but some industry figures claim that the radical initiative is threatened with
collapse before it is even announced. Companies involved with making the Green Deal possible face uncertainty as the future of the scheme rests on the balance of one simple question, 'How will the assessment pricing structure work for the industry and the consumer?'.
Since the Green Deal concept was first introduced, those directly involved with the implementation of the scheme have been asking the same question time after time, only to come up against a brick wall. The energy improvement initiative, due to launch in October, will see providers pay for 
property improvements carried out by Green Deal accredited contractors, financed by loans which will be recovered through 
the savings on the properties energy bills.
One industry professional and award winning entrepreneur, Andy Wynter, spoke out against the Government and spearheaded a campaign for an honest answer to the assessment pricing structure silence. “There has to be a proper, enforceable
fee structure, otherwise we may as well put the whole idea to bed right now.” said the Green Deal Consulting Managing Director, challenging the Government and the Department of Energy and Climate Change in August to show leadership and set a fair price for the vital Green Deal property assessments, sooner rather than later.
Still no-one came forward with the answer that was so desperately needed, so when Energy Secretary Ed Davey took to a live question and answer session hosted by Which?, industry professionals including Wynter, seized the chance to get the answer straight from the proverbial horse's mouth. Participants in the online session asked the burning question once again “The is still no mention of cost of Assessment and who pays for it, or indeed who will pay the Green Deal Advisor?”.
The concern is that if the home owner or tenant is liable to foot the bill for this, then it means there is an initial cost to the Green Deal from the offset, which is likely to put potential candidates off and hinder the success of the scheme. With an upfront cost which could be in excess of £150, customers risk paying for an assessment that could lead to no benefit. It may also transpire that their home does not meet the golden rule, set out to ensure that the cost of the energy efficiency improvements funded under the Green Deal does not exceed the current cost of a properties energy bills and the savings that will be made through the installation of such measures.
Ed Davey's response to this was more than a little vague, stating “I understand your point, but this is something that the market will want to tackle, and all our evidence from talking to providers is that they won't want to allow any assessment fee to put consumers off. So some might charge a fee - especially if you own a mansion - but for those of us who live in terraced properties, my guess is that many providers will do the assessment for free”.
Wynter, less than happy with the response from the Energy Secretary, responded..
“I know I speak on behalf of other members of the industry when I say that I am growing tired with the lack of clarity on the matter. I have
asked at meeting after meeting with the Department of Energy and Climate Change and
Green Deal providers, typical costs of assessments and have met a blank wall, and once again those who are responsible have continued to skirt around the issue.
It is outrageous that with less than two weeks until the launch of the Green Deal, people like the Energy Secretary are operating on guesswork. They should not be 'guessing' how providers will conduct the assessment process, it's absurd.”
With the Government continuing to refuse companies expected to assess premises an answer to what advisors are going to be paid, vital training and planning are coming to a grinding halt. So far, the Government has said they want fees to be determined by the market to enable
flexibility, but with companies like Green Deal Consulting investing thousands of pounds in recruitment and training for the Green Deal, talk is cheap.
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| Positive review of this story |
Mesur Cymru  |
7 Oct 2012, 11:32 PM |
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Yes, all very good but who will pay the GDA? Absolutely right, the likes of B&Q and the Utilities who become 'Providers' will rule the roost....... no doubt B&Q have trained their own staff as GDAs. Far from the GD offering opportunities for entrepreneurship, for an independent GDA who has paid for own training, where is this opportunity? And,if we do get a householder to 'invite' us to do an assessment, we spend 2hrs with them doing EPC and occupation assesssment, going back to the office to produce, lodge and print the EPC and GD Report, revisit, produce and discuss the report then they turn round and say 'not interested' WHO IS GOING TO PAY??
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| Negative Review of this story |
Ambassador for green growth  |
1 Oct 2012, 10:27 PM |
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Green Deal and the invisible hand Whilst respecting all corners of this debate, mine is as follows. You can relate the Green Deal with the age old 'invisible hand theory'. If every one acts in self-interest, this will generate demand for Green Deal products, measures and services. This in turn will compel competitors to deliver the same in a more productive manner, making profit in doing so by allocating resources in a more productive manner, thereby instilling more confidence in investment. The Green Deal has been designed to be a free and competitive market aimed at a voluntary customer demand, and one which is designed to kick start the economy. Therefore, competition between Green Deal Providers for their services, including the price of an advice report, is very healthy and will determine and reduce prices, increase quality and sustain a rising demand. In any event, there is an abundance of regulation already without everyone being told what they can charge for their well earned efforts! Industry is already setting it's own benchmarks for Green Deal services which we await with interest . . . .
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