Policy Context – The Governments Plan for Action Tyrone Homes Sustainable Energy Policy Division, Defra

Energy White Paper Goals..expect energy efficiency to deliver over half of carbon savings to 2010: Households - around 5MtC by and a similar amount by 2020 Businesses and the public sector - around 6MtC by 2010, and a further 4-6MtC by 2020

Implementing the White Paper Strategy Policies are targeted at: Households Businesses Public Sector …and cross-cutting policies, such as building regulations, product standards and low carbon innovation

The SE Act 2003: Section 2 stainable Energy Our overall aim is to secure carbon savings from the household sector in the UK of around 4.2 MtC which equates to around 3.5 MtC for England. The energy efficiency aim, in respect of residential accommodation in England, is to secure savings of around 3.5 MtC from such accommodation by This energy efficiency aim for England, is designated by the Secretary of State in accordance with her duty under section 2(1) of the Sustainable Energy Act 2003.

EEIP: the policy package Households 1.Extension of the Energy Efficiency Commitment 2.Building Regs – incl. boiler standards + labelling 3.Decent Homes + DA equivalents 4.Fiscal measures 5.Fuel Poverty Programme 6.Energy Services 7.Community Energy, Sustainable Communities

Households Carbon savings (mtC pa) for 2010 Measures already in the UK Climate Change Programme1.5 Energy Efficiency Commitment to 2011, Decent Homes (and equivalent programmes in the DAs) 1.4 Warm Front0.2 Community Energy & Other0.3 Building Regulations from Total (Households)~4.2 EEIP: the policy package…

Extension of the Energy Efficiency Commitment Next phase of the EEC - formal consultation in May 2004 Defra proposing a six-year EEC with activity levels to March 2011, roughly doubling current EEC A firm target for the first 3 years (set following consultation). A review in 2007 to set the target for the second period. Examine better interaction with other Gov. Programmes.

Decent Homes Government committed to ensuring that all social homes are made decent by 2010 Since April 2001 it is estimated that at least a quarter of a million local authority dwellings have received work on their insulation and heating By the end of 2004, the Government will have reduced by a third the number of non-decent homes existing in Target set for the private sector, to increase the proportion of private housing in decent condition occupied by vulnerable groups.

Fuel Poverty Programme Warm Front and DA equivalents A Fuel Poverty Strategy Implementation Plan will detail the Government’s plans for meeting fuel poverty targets for England. (expected later this year)

New Fiscal Measures? Budget 2004 announced; Reduced VAT rate for domestic ground source heat pumps; Upfront relief for landlords on installation of insulation in rented accommodation and consideration of a Green landlords scheme. Commitment to continue negotiation to extend categories of permitted VAT rates

Energy Services The Government has agreed to a series of 2 year pilots to test out whether waiving the 28-day rule can promote energy services while maintaining adequate consumer protection. (from May 2004) Ofgem are currently consulting on the modification to the energy suppliers’ licence condition.

Other policies in the household sector The EEIP will also detail the development of… Community Energy - enabling the installation, extension or refurbishment of community heating schemes Sustainable Communities – interim report from the Sustainable Buildings Task Group.

Cross-cutting policies and measures The following policies and measures will cut across several sectors and impact both business and households alike… 1.Revision of the Building Standards (2005) 2.Product Standards and Market transformation 3.Communications, information and advice ( 4.Enabling Policies – skills and training initiatives and innovation

Monitoring and Evaluation We will report on progress annually through the SEPN Annual Report We are currently developing new energy efficiency indicators: Households – nearly complete The aim will be reviewed in 2007 to ensure that the household sector continues to make an appropriate contribution to our overall carbon reduction goals, and that the aim and the measures designed to deliver it remain cost-effective in relation to other carbon abatement options.