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For further information please contact Kirsty Ivanoski in LGA public affairsKirsty.ivanoski@lga.gov.uk020 7663 3120
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On the day briefing –Heat & Energy Saving Strategy
12February 2009
The government today published three consultations:1.Changes to the Carbon Emissions Reduction Target (CERT)2.The new Community Energy Saving Programme (CESP)3.The Heat and Energy saving strategyWe would encourage member councils to respond to the consultations. Furtherinformation and the consultations are available at www.http://www.decc.gov.uk/hes
LGA key messages
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Energysuppliers should pay a £500 million annual charge to help fund acomprehensive home insulation programme that would lift half a millionpeople out of fuel poverty. This would match thecontribution householdersalready pay forthe three yearCERTthroughtheir energy bills.
LGA research last September showed that the energy supplier’s dividend  payments in 2007 were £1.65 billion (an increase of £275 million from2006).If suppliers provided an additional £500 million each year to CERT,from their own profits, all remaining lofts and cavity walls could be insulated.
•
Councils should lead such a national programme, delivering measures street-by-street across their communities.
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By investing more in home insulation, tenmillion households would eachsave £280 a year on their energy bills, 500,000 people would be lifted out offuel poverty and up to 20,000 new ‘green’ jobswould be created in areassuch as renewable energy and provision of insulation.
1. Changes to the Carbon Emissions Reduction Target (CERT)
In September the Prime Minister announced that the CERT target on energysuppliers would be increased by 20% -an extra £510 million. The announcedconsultation is to enable the necessary change to the secondary legislation.Changes have further been proposed to incentivise topping up loft insulation, toallow suppliers to claim energy savings for conducting home energy audits and forconsumption display devices.In September the Prime Minister also committed to insulating six million homes by2011. However, the LGA predicts that CERT will only insulate four million homes.
LGA key messages
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The LGA welcomes the increased target. We want to see all of theadditional £510 million spent on insulation, which could deliver an additionalone million insulation measures.
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CERT should be changed to focus on delivering insulation measures. Theproposed inclusion of audits and display devices wouldmake it easier (andcheaper) for suppliers to meet their targets. The long term energy savingsfrom these measures have yet to be proven.
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