Update from the Local Government Group (LG Group)

Abigail Burridge

Policy Advisor

25 MAY 2011 www.local.gov.uk

Outline of Presentation

• An introduction to the Local Government Group• Self-Regulation and Improvement Offer• Memorandum of Understanding • The Energy Bill• An introduction to the Green Deal• HECA• Feed-in Tariffs• Fuel Poverty Review

The Local Government Group

• Reflecting challenges facing local government, several organisations have come together:

– Local Government Association– Local Government Regulation– Local Government Improvement and Development (IDeA)– Local Partnerships– Local Government Leadership– Local Government Employers

Robust approach to self regulation – the core principles• Councils are responsible for their own performance• Stronger accountability - greater transparency• Collective responsibility for performance• LG group’s role is to support councils

Taking the lead – 7 point ‘offer’

• accountability tools• peer challenge• peer support• knowledge hub• transparent and

comparable data• leadership support• learning and support

A Memorandum of Understanding on Climate Change

• Between DECC and the LG Group on how to work together to deliver the Offer and keep up ambitious action by councils on climate change, energy and fuel poverty

The Memorandum of Understanding

• Government acknowledges the pivotal role of councils in enabling residents and businesses to tackle climate change

• LG Group will lead on encouraging and supporting councils to set their own targets and take action on:– Own-estate emissions– Area-based emissions– Meeting national objectives such as Green Deal, Renewables,

Smart Metering and Fuel Poverty

• Declaration

• Annual Review

• Action Plan

The Nottingham Declaration

• Nottingham Declaration hugely successful – over 90% councils signed up

• An evolution of the Nottingham Declaration to enable councils to demonstrate their continuing ambition on climate change

• Consulting with signatories on what a new Nottingham Declaration could look like

• New Nottingham Declaration Board

with greater council representation and direct links to Government

The Energy Bill

Several sections important for local authorities:– The Green Deal– The Energy Obligation – Private Rented Sector – Home Energy Conservation

Act (HECA)

Green Deal Process

Assessment Finance InstallationRepayments and Follow

Up

Role of Councils in the Green Deal

Local Authorities Forum on the Green Deal

• Green Deal Providers – making an offering to their residents for a Green Deal package

• Green Deal Partners – making a partnership with Green Deal providers that will benefit their local people

• Green Deal Endorsers – adding their trusted ‘brand’ to a Green Deal

• Green Deal Recipients – taking up a Green Deal offer on their own properties and/or social housing

Energy Company Obligation (ECO)• Carbon Emissions Reduction Target –

additional resources for homes that require a larger investment than the ‘golden rule’ allows for (e.g. Solid Wall)

• Home Heating Cost Reduction Target – aimed at low income and vulnerable householders to alleviate fuel poverty

• The Bill allows the Secretary of State to specify how these targets will be met, with regards to persons, properties, and geographical areas

Where the Green Deal meets ECO

Unsuitable for finance e.g.•Fuel poor or low income; •Low energy user;•Hard to treat housing

CONSUMERS Suitable for full finance e.g.•On higher incomes;•High energy user;•Low cost measures

Green Deal Finance

Energy Company Obligation

Funded primarily by GD Finance e.g.

basic insulation

Funded primarily by ECO e.g.

central heating

Home Heating Cost Reduction Target

• Clearer role for councils in enabling the effective delivery of the Energy Company Obligation?

– Finding fuel poor households– Solid wall insulation (planning permissions, street-by-street)– Social housing and scale to bring down costs

• Councils resourced to deliver their expertise…

Private Rented Sector

• Changed as of second reading of Energy Bill in House of Commons…

• Illegal to rent out a property with an Energy Performance Certificate of F or G from 2018

• Domestic and Non-domestic• Expected role for councils in enforcement• Awaiting more information…

Home Energy Conservation Act

• Government has changed its mind and will no longer be repealing the Home Energy Conservation Act

• “form an important part of our strategy to ensure coherent and joined-up implementation of the green deal right across the country at the local authority and community levels”

• Again, awaiting more information…

Feed-in Tariffs Review

• Over 50Kw from August 2011– Schools, community centres+

• Comprehensive Review Consultation

due mid-July• Risks:

– Aggregation – Funding for Fuel Poverty– Only available to the rich– Council role in the Green Deal– Mid-financial year change

Contact Details

Website: www.lga.gov.uk or www.local.gov.uk

Abigail Burridge

Senior Policy Officer

0207 664 3245

Abigail.burridge@local.gov.uk