MEMORANDUM FROM THE DEPARTMENT OF THE
ENVIRONMENT, TRANSPORT AND THE REGIONS AND THE DEPARTMENT OF TRADE
AND INDUSTRY
FIRST RESPONSE TO THE SEVENTH REPORT FROM
THE COMMITTEE, 1998-99, HC 159, ENERGY EFFICENCY
ENERGY POLICY
(i) The Government should adopt
a sustainable hierarchy in establishing a framework for UK energy
policy (as exists in the waste strategy). This hierarchy should
start with the promotion of end-use energy efficiency; energy
supply from renewable resources followed by combined heat and
power; fossil fuels, in order of efficiency and carbon intensity,
and nuclear power. (Paragraph 24)
1. The Government's framework for energy
policy is intended to provide a coherent approach to sustainable
energy in which all aspects of the proposed hierarchy play a part.
The approach is set out in the White Paper "Conclusions of
The Review of Energy Sources for Power Generation", which
was published in October 1998.
2. The White Paper sets out the Government's
central policy objective to ensure secure, diverse and sustainable
energy supplies of energy at competitive prices. The paper encompasses
the Government's concern for the environment, health and safety
and a fair deal for consumers, as well as its commitment to all
aspects of sustainable development (para 2.2). The paper also
makes it clear that the Government sees energy efficiency, or
conservation, as a key way to meet energy needs in a sustainable
way. There is no more efficient use of energy than not needing
to use it at all (para 9.51).
3. This is an effective approach. It is
integrated, comprehensive and recognises that a wide range of
issues need to be taken into account before decisions are taken
on energy issues. By contrast, the suggested concept of a "sustainable
energy hierarchy" covers only some of the issues which need
to be considered, for example it does not cover social issues,
or the cost of supply.
4. The Government's draft waste strategy
"A Way With Waste", which was published in June 1999,
illustrates the value, but also the limitation of a hierarchical
approach. It makes it clear (chapter 2) that the waste hierarchy
is just one of a number of principles which are taken account
of when making a decision. It provides a useful conceptual framework
which acts as a first point of reference and guide to the options
which should be considered. However care must be taken in its
use to ensure that it remains an indicative guide and does not
become overly prescriptive. As in energy policy, the most effective
decisions are seen to be reached through an integrated approach.
The key principle underlying the Government's vision of sustainable
waste management is the Best Practicable Environmental Option.
This encapsulates three of the four key elements of sustainable
development—and the draft strategy stresses the need to
be aware of the social dimensions of waste management.
ENERGY SOURCES
Renewables
(ii) The Government target is for
10 per cent of UK electricity to come from renewable sources of
energy "as soon as possible". We are concerned about
the Government's approach. Policy commitments must have both a
target level and a defined time period to be meaningful. Without
these elements progress may be difficult to inspire and certainly
impossible to audit. We look for the draft Climate Change Programme
to propose either a date for the 10 per cent goal or an interim
target for 2010. In the light of the grave reservations over the
likelihood of the target being met, expressed recently by the
Lords Select Committee on the European Communities, we also look
to the Government to produce a clear strategy demonstrating how
its goals are to be achieved. (Paragraph 26)
5. The Department of Trade and Industry's
consultation paper "New and Renewable Energy: Prospects for
the 21st Century" confirmed that the Government is working
towards a target of renewables providing 10 per cent of UK electricity
supplies as soon as possible; it hopes to achieve this by 2010.
The intention is to lay the foundations for further significant
growth of renewable energy supply. The paper also underlined the
important role of renewable energy in enabling the UK to meet
its legally binding target of reducing greenhouse gas emissions
by 12.5 per cent (compared to 1990) by 2008-12, and its goal of
reducing emissions of carbon dioxide by 20 per cent by 2010.
6. The Committee's views, as well as those
of respondents, will be taken into account in the preparation
of an Energy Paper, which will set out the Government's detailed
policy and strategy on renewable energy in the light of consultation,
and also in the work being carried out to develop the UK's draft
Climate Change Programme. Both are expected to be published towards
the end of the year.
Combined Heat and Power
(iii) If the mooted target of 10,000MWe
of CHP by 2010 is to be achieved it seems likely that larger installations
will be needed with the potential for more substantial sales of
electricity to the national grid. In these circumstances any new
framework for electricity distribution should incorporate incentives
encouraging demand-side solutions such as CHP and other embedded
generation with environmental benefits. The Government should
also consider what could be done to secure long-term access to
fair market prices for CHP using NFFO as an example. (Paragraph
30)
7. There is a big potential for increasing
the UK's CHP capacity; we estimate an economic potential of between
10,000 and 19,000 MWe. This year the Government plans to set an
increased UK target for CHP of at least 10,000 MWe by 2010, and
to develop a coherent strategy to achieve it. Government will
ensure that the new electricity trading arrangements provide long-term
assured access to fair market prices for CHP and renewables.
8. The benefits of embedded generation such
as CHP and renewables are factors being considered in the Review
of Electricity Trading Arrangements. OFGEM published on 31 July
its consultation document containing proposals for the new trading
arrangements: chapter 11 of that document discusses the implications
of the new arrangements for CHP and renewables schemes. In addition,
a range of regulatory, fiscal and other policy instruments will
be required to help meet the Government's objectives, including
the appropriate treatment of CHP under the climate change levy.
The stricter consents policy
(iv) We regard the stricter consents
policy to be serving no particular purpose and as running counter
to the spirit of the Government's commitments on climate change.
The Government should conclude the reform of the wholesale electricity
market as soon as possible so that it may bring the stricter consents
policy to an end. However, we believe that tinkering with power
station consents is peripheral to the vital work needed to establish
a sound footing for the development of sustainable energy sources
for the UK over the longer term. (Paragraph 35)
9. The stricter consents policy was introduced
following concern that market distortions were affecting the security,
diversity and sustainability of energy supply. The policy exists
to serve a specific purpose—to stabilise the generation
market. It will be relaxed as soon as good progress has been made
on the reform of electricity trading arrangements.
10. The policy is also contributing to the
achievement of the Government's Climate Change objectives. The
exception for good quality CHP schemes from the stricter consents
policy because of their environmental and other benefits has stimulated
an accelerated stream of high quality CHP proposals. Since the
Government's announcement of the "Review of Energy Sources"
in December 1997, 15 CHP schemes totalling 945 MWe have been approved.
These schemes provide very significant environmental and other
benefits over alternative electricity-only or heat-only options,
including a saving of around 1 MtC annually—an important
contribution to the UK's climate change commitments. Applications
for more than 1,000 MWe of further CHP capacity are in the process
of being considered.
FUEL POVERTY
(v) The persistent problem of fuel
poverty in the UK is a continuing national scandal. Its contribution
to 30,000 extra winter deaths (including some caused by cold within
the home), and the fact that up to four and a half million people
are significantly affected, should be addressed with the sort
of urgency and determination usually reserved for more sudden
crises here and abroad.
— In terms of public expenditure
alone we believe it would be most prudent and effective to address
the underlying causes of fuel poverty with a substantial and specific
programme of capital investment to raise energy efficiency standards.
— We are concerned at the way the
target for HEES is expressed in the Sustainable Development Strategy
in terms of the installation of "energy efficiency measures"
in a headline number of buildings—1 million—by 2002.
We would prefer a more meaningful measure of the outcomes achieved
in terms of a reduction in the incidence of fuel poverty and some
assessment of associated emissions reductions.
— Until fuel poverty is addressed,
taxes on domestic fuel and power are difficult to countenance.
However, if the UK is to deliver the necessary reductions in greenhouse
gas emissions (by 2010 and beyond) we do not believe that the
domestic sector can be permanently exempt from the environmental
consequences of its energy consumption. Therefore addressing fuel
poverty is both a social and environmental imperative. (Paragraph
46)
11. The Government shares the Committee's
concerns on fuel poverty and is determined to tackle the problem
as a social and environmental imperative. Action has already been
taken, including introducing annual £100 Winter Fuel Payments
for over 7 million pensioner households and cutting the level
of VAT on fuel to 5 per cent, providing an estimated saving to
consumers of £450 million, with particular benefit to the
fuel poor. VAT on energy saving materials has been reduced to
5 per cent releasing about £7.5 million for HEES to help
reach an additional 40,000 households to be paid each year. We
are also exploring with the European Commission the possibility
of a further reduction.
12. The recent inter-departmental review
of the Government's fuel poverty policy (Fuel Poverty: The New
HEES—a programme for warmer, healthier homes) has shown
that fuel poverty is not just about lack of income. It arises
mainly from the combination of low incomes and poorly insulated
and heated housing. The review concluded that in order to make
a permanent difference, poor home energy efficiency needed to
be tackled more effectively.
13. Whilst the existing Home Energy Efficiency
Scheme (HEES) has provided grants to over 3 million households
since 1991, the review showed that a radical reform of the scheme
is needed to make a significant difference to the lives of those
most in need. Hence, the Government recently published for consultation
proposals for the New Home Energy Efficiency Scheme ("New
HEES") for England. This radical new programme is designed
to provide warmer, healthier homes for those most vulnerable to
cold-related ill health—the elderly and families on low
income, and the disabled. With a budget increase in the Comprehensive
Spending Review to £256 million (another £44 million
for Scotland and Wales) for the first two years, New HEES will
provide grants for comprehensive packages of insulation and, for
the first time, central heating systems to around 500,000 homes.
14. Local authorities are responsible for
maintaining and improving their housing, and the energy efficiency
of the stock is, and will continue to be, a significant factor
in determining their capital programmes. Following the Comprehensive
Spending Review, an additional £3.6 billion will be made
available for local authority housing capital from 1999-2002.
On the basis of data collected to monitor the impact of the Capital
Receipts Initiative, we estimate that around one third of this
money is likely to lead directly or indirectly to improvements
in energy efficiency. We believe it is therefore appropriate for
new HEES to focus more on households in the private rented and
owner-occupied sectors, where the need for assistance is greatest
and there is little recourse to any other source of assistance.
15. To reflect this important change of
focus for New HEES, and the significant increase in resources
for their capital programmes, we will be asking each local authority
to report annually on the policies and measures they have established
for tackling fuel poverty in their own housing, and for promoting
New HEES more generally within their communities.
16. Following the completion of the consultation
on New HEES, we have decided to further improve the proposals,
in particular increasing the packages of assistance and increasing
the grant maximum from £315 up to £1,000 for New HEES
and to £2,000 in the case of New HEES Plus.
17. Over the course of 1999-2002 the overall
target, set before the completion of the review, is to install
energy efficiency measures in 1 million buildings. In the remaining
two years of the Government's present spending programme, we estimate
that New HEES will reach a total of 500,000 households, including
some 300,000 over-60s households receiving New HEES Plus packages.
The level of assistance provided to each household is designed
to be sufficient to move them out of fuel poverty in all but a
minority of the most difficult cases. The size of the programme
for later years will be considered in the next Comprehensive Spending
Review.
BARRIERS TO
IMPLEMENTATION OF
ENERGY EFFICIENCY
(vi) Falling energy prices appear to
send stronger signals than awareness campaigns and seem likely
to overwhelm current efforts to promote energy efficiency. The
actual economics of energy efficiency investments will become
less attractive but, more importantly, the already low priority
afforded to the concept overall will be further weakened. (Paragraph
55)
(vii) We regard incentives to consume
higher levels of energy as flying in the face of current Government
objectives—and the provision of Air Miles in this context
as rubbing salt in the wound. We recommend that Ministers, the
Director-General of Electricity and Gas Supply and the energy
companies together consider what measures are currently feasible
and/or desirable to address this issue. An assessment should be
made of the balance between the benefits of cost-reflective pricing
compared to the poor environmental signals being given. (Paragraph
56)
(viii) We regard the development of
energy services provision as fundamentally important to the achievement
of the UK's environmental objectives and their promotion should
be integral to the Government's stewardship of the completion
of market liberalisation and not left for bolting on afterwards.
(Paragraph 57)
18. Prices are driven down by competition
and increased efficiency in the market, maintained by effective
regulation of the utilities. This is helpful to the fuel poor,
helping them to keep warm, whilst living within their budget.
19. Cost-reflective pricing is an expected
and welcome result of the introduction of competition into the
gas and electricity markets, which leads to increased efficiency
in the supply of electricity and gas. Whilst falling energy prices
and the fact that energy supply companies' marketing has initially
focused mainly on the unit cost of gas and electricity, the Government
does not regard high prices as an acceptable way to achieve energy
efficiency. Alongside cheaper energy, Government is working to
create a market structure within which energy efficiency can be
encouraged to become a natural part of the energy services provided
for the consumer.
20. The Government's utility regulation
Green Paper "A Fair Deal For Consumers" spelled out
the great significance of the utility industries to the Government's
objectives for the environment, and the important part that utility
regulation had to play. This message has been carried through
into the proposals for the new Utility Bill which give clear environmental
signals to the gas and electricity companies to strengthen and
develop the role of energy efficiency within their services. They
also spell out the social context that regulation has to reflect:
— there is to be a new duty for Ministers
to issue statutory guidance to the regulator on social, environmental
and energy efficiency measures; and a duty for the regulator to
have regard to that guidance;
— the statutory duty of the regulator
to promote energy efficiency in carrying out his other responsibilities
will continue;
— the duty to safeguard the elderly,
disabled and rural people will continue, and be extended to low
income consumers and the chronically sick;
— Ministers also propose to take the
power to set future Energy Efficiency Standards of Performance
(further details are provided in response to recommendation xv).
21. The Government is also tackling the
issue by improving communications on the benefits of energy efficiency
and ensuring that clear environmental signals are given to the
public and to the industry.
22. DETR's Memorandum to the Committee explained
that DETR has a programme designed to break down barriers to energy
efficiency which are perceived by householders and businesses.
The programme budget of £109 million in 1998-99 will double
by 2001-02. The two promotional programmes, the Energy Saving
Trust's Energy Efficiency marketing programme and the DETR's Are
You Doing Your Bit campaign should demonstrate the advantages
of energy efficiency. Progress with both programmes is carefully
monitored—and adjustments will be made where necessary.
23. The Government's work to encourage the
development of energy services is another way in which the messages
on energy efficiency are being taken forward. If people buy energy
services, they will focus on the cost of the things they do with
the energy they buy—like heating their home or business,
rather than the unit cost of gas and electricity. The efficiency
with which energy is used will become as important to consumers
as its unit cost.
24. The Government has been working closely
with the Energy Services Association, the industry and the Energy
Saving Trust to tackle barriers to the emergence of energy services
in the domestic and public sectors. For example:
— the Energy Efficiency Best Practice
programme has produced a guide to the introduction of energy services
in the public sector;
— the Government has provided financial
assistance for the Energy Saving Trust's work to encourage
the development of Energy Services and through significant additional
funding to improve the housing stock;
— the Government is seeking to improve
the opportunities for the development of energy services:
— a seminar has identified the
barriers to energy services, and possibilities for overcoming
them;
— efforts are being made to clarify
the regulatory position on issues which concern those with an
interest in providing energy services;
— the Government is revitalising
the local government legislative framework. This will confirm
and clarify local authorities' capabilities to promote energy
efficiency in the interests of their local communities;
— the Government is building partnerships
to promote energy services to specific parts of the domestic sector.
Events such as the seminar held in 1998, which brought together
those with an interest in taking forward the concept of energy
services in the context of social housing transfers, show what
can be achieved.
INSTITUTIONS AND
PROGRAMMES
(ix) We recommend that the Government
review its arrangements for developing and implementing sustainable
energy policy and the potential for synergy between efforts to
promote energy efficiency and efforts to promote the development
of renewables. In particular it should consider carefully the
concerns that have led to calls for innovation, for example, the
establishment of an independent sustainable energy agency. It
seems clear that while Government believes its arrangements can
be made to work, this view is not shared by significant partners
outside Whitehall. (Paragraph 64)
25. Energy efficiency is a wide ranging
subject which inevitably involves a wide range of officials within
Government—for example, those involved in energy efficiency,
energy policy, the protection of the environment, sustainable
development, regeneration, housing, planning, local government,
transport, health, social services and taxation. It would be impossible
for a single agency to be able to successfully cover all of these
areas. Moreover it is important to recognise the cost and disruption
resulting from organisational change. Government Departments would
remain responsible for policy on energy efficiency and departments
would need to continue to work together to develop policy and
to monitor its operation. Effective liaison has developed as officials
work together very closely, enabling the Government to develop
and carry forward its energy efficiency policy. In particular,
Ministers in DETR and DTI meet regularly to consider energy efficiency
issues of common interest and to report on the progress of current
initiatives. The Energy Efficiency, Environment and Waste Directorate
of DETR is in close touch with others across Government with an
interest in energy efficiency. It ensures that others are involved
whenever it is appropriate. These arrangements work well.
26. The Government always keeps under review
the distribution of functions for developing and implementing
its policy. For example, the role of the Energy Saving Trust has
been redirected to ensure its position on the cutting edge of
energy efficiency and a review of the Trust is planned to start
later this year. The Government is also contemplating a prospective
Carbon Trust for industry.
(x) We recommend that a new unit with
a dedicated staff be given specific responsibility for driving
and coordinating policy on energy efficiency; its integration
into other policy areas; and for identifying barriers to effective
action. The unit should report to the relevant Ministers in both
the DETR and DTI and have a remit to advise Ministers on: particular
barriers and opportunities in the promotion of energy efficiency
throughout all Government policies and programmes; and on what
actions are needed when logjams have been identified. (Paragraph
65)
27. The Energy Environment and Waste Directorate
of the DETR has responsibility for energy efficiency policy. Its
officials work closely with those in other policy areas in the
Department (eg on climate change) and with officials in other
departments. For example, it is currently working with the DTI
(on renewables, policy on energy supply, development of the forthcoming
legislation on utility regulation, the Climate Change Levy and
Negotiated Agreements), the Departments of Health and Social Security
(on the development of policies to assist the fuel poor) and Customs
and Excise (on taxation issues). This Directorate is responsible
for both the Energy Efficiency Best Practice Programme and the
Energy Saving Trust and thus brings together the capabilities
proposed.
(xi) We conclude that the Government
needs to reassess its many different programmes for promoting
energy efficiency to achieve a simpler, more stream-lined and
efficient approach. (Paragraph 72)
28. The Government accepts this recommendation
and is undertaking a review as part of the development of the
UK Climate Change Programme. The Government expects to consult
on a draft programme towards the end of the year.
THE CLIMATE
CHANGE LEVY
(xii) With regard to the Climate Change
Levy, we recommend that:
— the Levy be identified clearly
on consumers' bills;
— the Government should address
the impact that the Levy will have on the competitiveness of heavy
users of energy in a proportionate way;
— electricity bought under verified
green tariffs be exempted from the Levy;
— the amount of direct funding for
energy efficiency under the Climate Change Levy be doubled and
reviewed over time as to cost-effectiveness in securing emissions
reductions; and
— the Government should assess the
effects of using a proportion of Levy revenue to provide continuing
incentives and assistance for investments in energy efficiency
in the form of tax breaks or rebates.
In addition we conclude that for the Government
and interested parties not to consider options for emissions trading
schemes alongside the development of the details of the Levy may
prove a lost opportunity. (Paragraph 74)
29. The climate change levy will make a
significant contribution towards the UK's climate change targets.
The price effect of the levy is expected to lead to carbon savings
of 1.5 million tonnes per annum by 2010. Significant further carbon
savings are expected from those sectors which enter into negotiated
agreements to improve their energy efficiency. The Government
is working hard to ensure that the levy is implemented effectively
and in a way which complements other instruments such as regulation,
negotiated agreements and emissions trading.
30. The UK is not alone in introducing a
tax. Seven other EU states have already announced or implemented
energy or carbon dioxide taxes as a means of encouraging energy
users to reduce emissions, and two others are believed to be considering
the possibility.
31. The Government recognises that many
people feel that the environmental objective of the levy will
be enhanced if the amount of levy is shown on invoices. However,
there may be contrary views and so the point has been included
in the consultation exercise being carried out by Customs and
Excise.
32. The Government recognises the need for
special consideration to be given to the position of energy intensive
industries given their energy usage, the separate Integrated Pollution
Prevention and Control regulation, and their exposure to international
competition. The Chancellor has therefore offered the prospect
of significantly lower rates of levy for energy intensive sectors
of industry which enter into agreements meeting the Government's
criteria.
33. The treatment of renewable energy was
covered in the consultation document on the levy published by
HM Customs & Excise on 9 March. The consultation document
noted the Government's view that excluding electricity generated
from nuclear power or large scale hydro-electric schemes from
the levy, even when supplied direct to the final consumer, could
not be justified as a means of developing renewables generation
capacity. However, many respondents expressed the view that renewable
energy should be exempt. The Government is currently considering
the responses to the Customs and Excise consultation, inter
alia in the light of the need to ensure that if any exemption
scheme were put in place, it would need to be legally robust,
and take account of the need to provide for equal treatment of
imported electricity.
34. It is proposed that an additional £50
million in the first year of the Levy should be used to promote
energy efficiency and renewable energy. This will provide a step
change from current levels of funding. It is proposed that this
funding will be used to provide information and advice for companies
on cost-effective energy efficiency measures; to support the development
of low-carbon technologies through a "carbon trust";
and to support renewable sources of energy such as solar and wind
power. Proposals are currently being developed for these schemes.
These will be assessed for their relative effectiveness and costs.
The efficacy of the selected schemes will be monitored once they
take effect. The Treasury is considering representations from
industry in support of additional incentives for energy efficiency
investment.
35.The Government is committed to supporting
the development of emissions trading schemes. The CBI and the
Advisory Committee on Business and the Environment are currently
developing proposals for a business-led scheme, with support from
Government Departments. The negotiated agreements for energy intensive
sectors of industry will also provide scope for trading between
individual participants. Trading with other approved schemes will
be allowed once these are established. The link between emissions
trading and other economic instruments will be kept under review.
VALUE ADDED
TAX
(xiii) We recommend that the UK supports
the European Commission proposal for a Directive allowing temporary
VAT reductions to be applied to local labour-intensive services
and that the Government applies the reduction, once available,
to all installations of energy saving materials as a priority.
(Paragraph 76)
36. The European Commission has made a proposal
which provides for the possibility of a reduced rate of VAT for
certain labour intensive services. Member States have been asked
to draw up a list of the services to which the measure might apply.
This is still under discussion and is being considered by the
Government.
37. OBLIGATIONS
TO ACHIEVE
EFFICIENCY IMPROVEMENTS
(xiv) We recommend that all necessary
steps be taken to extend the existing Standards of Performance
scheme for electricity supply until the advent of the new utilities
legislation including, if necessary, securing the voluntary participation
of suppliers outside the ambit of the existing legislation. We
urge the Director-General of Electricity and Gas Supply to establish
a Standards of Performance scheme for gas suppliers as soon as
possible using the successful electricity scheme as a model (and
we recommend that his statutory powers to do so are not allowed
to lapse by the Secretary of State for Trade and Industry). (Paragraph
82)
38. The Government has encouraged the Regulator
to extend the existing electricity EESOPs scheme beyond 2000,
and to put into place similar provisions for gas. It is recognised
that an extension of the regulator's statutory powers may be necessary
to allow him to do this. The Government is pleased that the Regulator
has recently published a consultation document on his proposals
for such an extension and will comment on the details of the proposals.
(xv) We support the establishment of
an enhanced Standards of Performance scheme for energy efficiency
and we strongly recommend that obligations, for both electricity
and gas, be imposed on the supply function rather than the distribution
function in order to encourage the development of energy services
provision. (Paragraph 84)
39. As mentioned in response to an earlier
recommendation on the barriers to the implementation of energy
efficiency, the Government has announced that the Utility Reform
Bill would include powers for Ministers to set Energy Efficiency
Standards of Performance (EESOPs). It is proposed that the legislation
should provide for EESOPs to be placed on either supply or distribution
companies, or both. But the Government has indicated that it would
expect to place any EESOPs on supply companies. This would build
on the companies' direct relationship with consumers, and build
on their business interest in developing and marketing new energy
products. It would align well with the wider objective of creating
a strongly consumer focused utility market.
REGULATION
(xvi) We believe that the Government
should adopt the proposal for there to be mandatory energy surveys
of houses at the point of sale or introduce a requirement for
energy suppliers to offer one to new customers (in which case
the Utilities Reform Bill offers a timely opportunity to secure
introduction). (Paragraph 92)
40. The Government supported the Energy
Efficiency Bill to make further provision for energy efficiency
in the last session, which would have required mortgage lenders'
reports to include information on the energy efficiency of properties,
and on possible measures for improvement. The Bill had the support
of the Council of Mortgage Lenders. The Government regrets that
the Bill fell due to objections in the House of Commons. Ministers
have encouraged mortgage lenders voluntarily to introduce schemes
for providing borrowers with energy efficiency information and
welcomes the action taken by a number of lenders.
41. The Government is continuing to look
for ways in which the objectives which lie behind the Bill can
be achieved by other means. The DETR is considering the possibility
that those selling a dwelling might be required to provide a basic
pack of information—possibly including information on energy
efficiency, to prospective buyers.
LOCAL AUTHORITIES
(xvii) We welcome the Government's
plans to assess formally the lessons to be learned from the experience
of the Nottinghamshire and Derbyshire Local Authorities' Energy
Partnership in order to disseminate best practice . . . We recommend
that as well as extracting lessons for best practice, the Government's
review process also focuses upon the barriers encountered by the
Partnership and that Ministers take steps to address these. (Paragraph
98)
42. The Government welcomes and encourages
the establishment of partnerships, such as the Nottinghamshire
and Derbyshire Local Authorities' Energy Partnership (LAEP), to
take forward energy efficiency activity and to facilitate implementation
of the Home Energy Conservation Act 1995 (HECA). It is aware of,
and in contact with, 20 or more similar HECA forum partnerships
developed by energy conservation authorities in England, with
a collective membership of over 200 authorities (almost two thirds
of all authorities). Issues drawn to the Government's attention
are considered, and wherever possible, addressed. These partnerships
are demonstrating that benefits arise for all members through
economies of scale, reduction of duplicated effort, pooling of
expertise, and co-ordination of activity.
43. The specific study which is being carried
out, and to which the Minister referred in his evidence to the
Committee, relates to the Nottingham Energy Partnership (NEP).
This is a partnership set up by Nottingham City Council and Enviro
Energy Ltd to stimulate energy efficiency improvements throughout
the city of Nottingham, exploit its energy resources and offer
a holistic approach to the use and supply of energy across residential,
industrial and commercial sectors. The Government is taking an
active interest in the management and activities of the NEP. It
has accepted the NEP's invitation to sit on the Partnership board,
and has set up a consultancy study to learn from the Partnership
experience, with a view to disseminating the lessons more widely,
as a case study of interest to other authorities. The Government
is also looking to see how effectively the Government's own energy
efficiency programmes and policies, developed nationally, can
be put into effect by action at a community level, through initiatives
such as the NEP.
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