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Home Energy Efficiency Scheme

Volume 482: debated on Tuesday 11 November 2008

To ask the Secretary of State for Energy and Climate Change how much Eaga made from charging installers of energy saving equipment which was purchased using Warm Front vouchers in each of the last five years. (232978)

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

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.

To ask the Secretary of State for Energy and Climate Change whether Eaga is permitted to sell Carbon Emissions Reduction Target credits to energy companies in cases where those credits arise from Warm Front grant-aided energy saving installations. (232979)

Yes, Eaga is permitted to sell carbon credits derived from measures undertaken through the Warm Front scheme. Funding generated through this process supplements the Warm Front budget.

To ask the Secretary of State for Energy and Climate Change what the average cost was of work carried out by Warm Front contractors for households who secured a Warm Front grant in the latest year for which figures are available. (233638)

Between 1 April 2007 and 30 March 2008 the Warm Front scheme assisted 268,900 households. The average grant spend over this period was £1,301.60.

To ask the Secretary of State for Energy and Climate Change by what criteria his Department decides which companies and suppliers can contract with Warm Front. (233641)

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

Quality assurance

Customer care

Value for money

Training

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.

To ask the Secretary of State for Energy and Climate Change what the administration costs of the Warm Front scheme have been in each year of its operation. (233642)

The following table illustrates the administration costs and relative percentage of total funding in delivering the Warm Front Scheme under Eaga’s management.

Administration cost

Scheme year

£ million

Percentage of total budget

2005-06

18.1

10

2006-07

28.6

9

2007-08

31.5

9

Prior to 2005, the scheme was administered by two agencies (Powergen and Eaga), as such, the total cost figures for this period are unavailable.