NEWS

Energy Policies Such As Home Insulation Schemes Reducing Bills

27 March 2013

A scheme promoting improved insulation in the home is among those helping to reduce energy bills across the UK.

A report from the Department of Energy and Climate Change (DECC) has revealed that future energy bills will be less expensive as a result of Government schemes designed to improve energy efficiency in UK homes.

The report states that the average household bill in 2020 will be 11% less than if Government schemes had not been put in place to improve energy efficiency. That currently equates to £166 per year.

The report comes as the Government continues to roll out the Green Deal, its latest programme aimed at reducing carbon emissions and reducing the number of “leaky” homes.

Government Initiatives

At the beginning of 2013, the Government introduced the Energy Company Obligation (ECO).

ECO replaced the Carbon Emissions Reduction Target (CERT) which had operated under various guises since 2002. Both initiatives impose sanctions on energy providers to reduce carbon emissions, improve insulation and energy efficiency, and make energy bills more affordable.

In January, the Government also launched the Green Deal to run in conjunction with ECO.

The Green Deal is designed to provide financial assistance to those looking to make energy-efficient improvements, including Cavity Wall Insulation, Loft Insulation and Boiler Repair.

Under the ECO part of the scheme, low income householders and those considered to be living in fuel poverty are entitled to a grant to cover the costs of these home improvements.

Those that do not qualify for a grant can apply for a Green Deal loan, which is paid back via a property’s electricity bill. Under the conditions of the loan, the cost of repayment will not exceed the sum of savings during each billing period, meaning householders will not be financially disadvantaged.

Potential Savings

According to the DECC report, the average dual fuel bill is £1,285 per year.

Of that figure, 47% (£598) covers the cost of fossil fuels. 20% (£257) goes towards network, transport and distribution costs. A further £112 (9%) goes towards Government policies, including research, development and administration of renewable energy sources.

The Green Deal itself offers a range of savings. According to statistics from DECC, those fitting Cavity Wall Insulation can save up to £140 per year and those installing Loft Insulation can save up to £180 annually. Such potential savings are currently being used to spearhead the scheme and promote awareness within the general public.


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