The £300 rebate scheme began in 2006. Eaga plc met the costs relating to the development and introduction of this initiative. For each voucher redeemed, the Department agreed that Eaga would receive a £42.55 administration fee. This fee is paid for by each installer registered on the scheme and contributes to ongoing administration, IT and management costs. The following table illustrates the number of vouchers redeemed, by the scheme year and the totalled administration fees recovered, since this time.
Scheme year Redeemed vouchers Recovered admin fee (£) 2006-07 1,977 84,121.35 2007-08 64,702 2,753,070.10 2008-09 46,531 1,979,894.05 Total 113,210 4,817,085.50
Recovered admin fee (£)
It is important to note that, once a contractor is registered on the £300 scheme, they benefit from a Government backed administrative process guaranteeing promotion of their services. This improves their respectability, reduces advertising costs and guarantees work they would not necessarily have otherwise received.
Eaga, the Warm Front scheme manager, is obliged, under the contract held with DECC, to comply with EU procurement regulations for all contracted works. The regulations mandate that offers to tender are placed in the Official Journal of the European Union (OJEU).
Installers interested in working on the Warm Front scheme must enter a competitive tender process. Fundamental to the process are an interrogation of installer policy, financial standing, compliance with instructions and professional qualification. Policies interrogated include:
Health and safety
Value for money
Sustainability and corporate social responsibility
Environmental and waste reduction
Qualification to professionally recognised standards, i.e. Corgi, NICEIC, BBA, etc dependant on measure(s) bid for.
Eaga is currently undertaking the above tender process for installers to commence working on the scheme in June 2009.
The following table illustrates the administration costs and relative percentage of total funding in delivering the Warm Front Scheme under Eaga’s management.
Scheme year £ million Percentage of total budget 2005-06 18.1 10 2006-07 28.6 9 2007-08 31.5 9
Percentage of total budget
Prior to 2005, the scheme was administered by two agencies (Powergen and Eaga), as such, the total cost figures for this period are unavailable.