With the start of global climate talks in Copenhagen, Denmark, the UK energy and climate change secretary Ed Miliband has outlined steps to help the country’s households make their contribution to cut emissions. The UK government’s Energy Bill also has its second reading in the Commons.
Homeowners in Birmingham, Sunderland, London Borough of Sutton and Stroud will be testing out new ways to finance whole house energy makeovers under the UK government’s GBP4m Pay As You Save (PAYS) scheme, which will run until April 2011. Following an open competition, Birmingham City Council, Gentoo Sunderland, British Gas, B&Q UK and Stroud District Council have been chosen to deliver individual projects in the UK trials.
Mr Miliband said: “The next two weeks in Copenhagen are crunch time for the planet. The UK has taken a lead in putting solutions on the table throughout the process so far and I’ll not rest until we have the most ambitious, effective and fair deal possible.
“Our credibility abroad is based on our ambition at home. We’re the first country to put carbon targets into law, and our target of an 80% reduction by 2050 is one of the most ambitious. Many British householders want to reduce their emissions, but are put off by the upfront cost of installing insulation, solar panels or ground source heat pumps. Pay As You Save will trial different ways of paying for this work so it’s affordable.”
The Home Energy PAYS pilots will give households the opportunity to invest in energy efficiency and micro generation technologies in their homes with no upfront cost. Householders will make repayments spread over a long enough period so that repayments are lower than their predicted energy bill savings, meaning financial and carbon savings are made from day one.
The Energy Bill, which receives its second reading in the Commons, will protect households by providing mandatory social price support, such as in the form of an electricity bill rebate. The energy regulator Ofgem will include the reduction of carbon emissions and the delivery of secure energy supplies in its assessment of the interests of consumers. The bill will give Ofgem additional powers to tackle market exploitation where companies might take advantage of constraints in the electricity transmission grid.
The Energy Bill will also help the UK develop Carbon Capture and Storage (CCS) technology. The new CCS incentive will support the construction of up to four commercial-scale CCS demonstration projects in the UK. The CCS incentive could also provide funding for the retrofit of demonstration projects to their full capacity, should it be required in future.