Energy Bill

Memorandum submitted by SmartestEnergy (EN 01)

SmartestEnergy welcomes the opportunity to respond to the Call for written evidence: Energy Bill [HL]

1. Introduction to SmartestEnergy

1.1 SmartestEnergy is an electricity supplier in the half hourly business market and does not have a licence to supply domestic premises. We do not currently supply any non half hourly metered business customers. On the gas side we are a licensed supplier and shipper but we only supply gas to power stations.

2 Summary of Submission

2.1 We believe that the bill should explicitly state that a Green Deal is for the domestic homes only and that the relevant energy supplier is defined as the supplier of the relevant energy i.e. the energy that is saved as a result of the energy efficiency measure installed.

3 Evidence

3.1 In your "Call for written evidence: Energy Bill [HL]" the purpose of the bill is stated as follows:

"The flagship policy in the Bill is the ‘Green Deal’, a scheme whereby homes would be given finance upfront to make energy efficiency improvements, which would then be paid for by energy bill savings." The key word we would highlight here is the word "homes".

3.2 The bill as drafted states that "For the purposes of subsection (4)(a) a property is an eligible property unless it falls within a description specified in an order made by the Secretary of State. "

3.3 We believe that if Parliament is being led to believe that Green Deals are aimed at domestic homes only, this should be specified in the legislation.

3.4 It is inappropriate that a non-domestic supplier should be involved in a scheme aimed ostensibly at domestic customers.

3.5 The bill as drafted further states:

" The payments in instalments agreed in the plan are to be-

(a) made by the person who is for the time being liable to pay the energy
bills for the property, and

(b) made to the relevant energy supplier through the energy bills for the
property.

………

"Energy" (except in this section), "energy bill", "occupier", "owner" and
"relevant energy supplier" have the meaning given in regulations made by the Secretary of State. "

3.6 In this context the words "relevant energy supplier" need further definition. These words are presumably intended to refer to the party who supplies the property , as opposed to other parties who supply other properties . However, the energy itself is relevant in the context of the Green D eal . We believe that the relevant energy bill is the one which is reduced by the energy efficiency measure being installed . The relevant energy supplier should be defined as the supplier of the relevant energy i.e. the energy that is saved as a result of the energy efficiency measure installed.

3.7 At a domestic level it is likely that the relevant energy in question will be gas, saved as a result of insulation and energy efficiency measures, as such it would seem inappropriate that a business electricity supplier should be involved in such a scheme.

May 2011