Select Committee on Public Accounts Fifth Report


2 Installing the right measures

10. The Warm Front Scheme provides funding for a range of heating and insulation measures, the selection of which by Scheme Managers is governed by rules set by the Department. Warm Front offers a wider range of measures than was offered by the previous Scheme. The Department explained that cavity wall insulation was the most effective way of increasing energy efficiency and reducing heating bills in domestic homes, although fitting a gas condensing boiler and insulating the loft would also have a significant impact. Some measures had very little effect, such as two energy efficient light bulbs, which saved only £10 a year (Figure 3).[11]


11. The Department intended that the rules on the provision of energy efficiency measures under the Scheme should assist the greatest number of people in the most effective way. The existing Scheme rules require, however, 'like for like' replacement of boilers and heating systems. Thus for example heating systems can only be replaced by those of a similar kind, so that a defective warm air system has to be replaced with another warm air system, even if a cheaper, more efficient option is available. Boilers cannot be repaired or replaced unless they are broken at the time the Warm Front technical survey is carried out. As a result, old, inefficient but technically operational boilers, or boilers with an intermittent fault cannot be repaired or replaced through the Scheme, even though in some cases the defective boiler is later condemned. The Department was working with Scheme Managers on criteria to provide new or different systems more effectively, and would change the like for like rule at the earliest opportunity.[12]

12. Homes with a low energy efficiency rating usually require substantial investment to make them more energy efficient. Where the estimated cost of these essential works exceeded the Warm Front grant maximum or where the Scheme rules did not permit the best solution, Scheme Managers had used funds provided by electricity and gas suppliers through the Energy Efficiency Commitment to supplement Warm Front grants.[13] Under the Energy Efficiency Commitment, energy companies 'buy back' measures originally provided by Warm Front, by providing funds for these measures to the Scheme Managers. The Scheme Managers use these funds to provide extra or more flexible assistance to recipients.[14]

13. Delays in installing measures were a serious problem for the Scheme, with over 50% of all jobs exceeding the target times. In one case, a recipient faced a wait of nine months for a central heating boiler, and hence the family had found their own funds to do the work. The Scheme Managers noted that there was a shortage of gas engineers, which created price pressures, influencing companies' prioritisation of work. Average waiting times had, nevertheless, fallen by 17% compared with a year ago and more skilled engineers had been brought into the Scheme. In addition, a new industry training scheme, linked to changes in building regulations which come into force in April 2005, should increase the number of trained engineers able to undertake work for Warm Front.[15]



11   Qq 47, 81, 75-76 Back

12   Qq 28, 32-36, 54 Back

13   The Energy Efficiency Scheme is a government scheme, administered by Ofgem, which began on 1 April 2002 and runs until 31 March 2005, and sets each energy supplier a target to save energy based on the number of domestic customers they supply.  Back

14   Qq 29, 51-52, 77  Back

15   Q 7 Back


 
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