Written - Publication of the National Energy Efficiency and Savings Plan consultation

I launched the National Energy Efficiency and Savings Plan consultation on Monday 16 March.

The Plan aims to reduce Wales’ greenhouse gas emissions by making all parts of Welsh society more energy efficient. This means helping people save energy and cut costs at home, working with communities and supporting the public sector and business to become more energy efficient.

The plan includes:

• Proposals to change the Home Energy Efficiency Scheme.
• Better, joined up, advice for members of the public on where to get help.
• Support for small businesses to become more energy efficient.
• Helping credit unions provide low cost loans for energy efficiency.

As a Government we have made a commitment to reducing greenhouse gas emissions in devolved areas by 3% a year by 2011. Saving energy will help us achieve this. Importantly it also means saving money. We want to help householders in Wales who are struggling with their energy bills to save energy and money and be better able to manage the cost of heating their homes now and in the future. We also want to help businesses and the public sector cut their costs.

A key part of the policy is changes to the Home Energy Efficiency Scheme (HEES) so that it helps the people who need it most. The scheme currently provides grants for heating and insulation improvements. The Assembly Government is proposing to focus investment and direct more help to people who are on a means tested benefit and live in a property that does not have very good energy efficiency at the moment. For example, older people on pension credit living in an old property off the gas network or a family on income support living in a 1950’s property that hasn’t been improved.

HEES has a good record. Since 2000, we have spent £100 million to help 100,000 Welsh households save money on their heating bills, but it can be more effective. This scheme was set up at a time when incomes were stable and rising; while energy prices were falling. Now we have the reverse. We need to target the people who most need help, while also ensuring a range of support mechanisms are in place to assist everyone.

The plan also aims to ensure that no matter which advice or support service a person contacts as their first point of call, they will be offered a full range of advice.  Support is available from energy companies, the Energy Saving Trust and other bodies.

We propose working with credit unions in Wales to help them offer low interest loan packages specifically for energy efficiency measures. This would mean that packages would be designed so that savings in energy bills are likely to be greater than the loan repayments.

The public sector should set a good example and lead the way in energy efficiency by demonstrating the benefits and motivating other people. Community leaders and government will need to lead by example and make positive energy choices if we want to persuade individuals and businesses across Wales to do the same.

Local authorities deliver a range of services linked to energy efficiency and fuel poverty including housing, environmental services, social services and health. Therefore, they are well placed to coordinate and integrate the delivery of energy efficiency measures with other local authority services to enable effective, coordinated action. We want to work with local authority services (e.g. social services and benefits advice teams) and community groups to refer people eligible for extra help directly into schemes.

We also want to raise awareness of the help available in communities where our research and local partners have suggested that fuel costs are causing real problems. Working with support and advice groups like Age Concern, Care and Repair agencies, health groups and groups of people with particular interests or backgrounds in this area will help us find the people that need our help.

The energy used by businesses is a major contributor to greenhouse gas emissions. By saving energy and reducing greenhouse gas emissions, businesses can not only contribute to meeting this target but save significant amounts of money as well.

Proposals in the plan would generate new opportunities for businesses in Wales. Millions of pounds of investment in low carbon refurbishment and local energy generation will offer business development opportunities.  People working in the building trade have the opportunity to encourage energy efficiency improvements which will increase the value of work being done and help householders save energy.

Private sector landlords also have an important role to play in reducing greenhouse gas emissions.  Homes and buildings that are energy efficient are likely to attract more in rent than buildings that are not energy efficient in the future. Energy Performance Certificates will demonstrate the benefits of energy efficient buildings to tenants.

We believe proposals in this plan offer practical actions which will help those most in need and contribute to the next stage of the Climate Change Strategy and our Energy Strategy. Additional longer-term energy efficiency actions will develop as part of those documents as we establish the most cost-effective mechanisms for meeting our 3% per annum greenhouse gas reduction target.