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The Green Deal

‘Green Deal’ was launched as part of The Energy Act 2011. This ensures a cost effective way to reduce carbon emissions by radically changing how British properties use energy.

An innovative Green Deal financial system has eliminated the upfront cost of energy efficiency measures by allowing payments to be made through their electricity and energy bills.

Energy Company Obligation “ECO” is a new scheme that offers the domestic energy user a better service and places legal obligations on the larger energy suppliers to deliver energy efficiency measures. Working alongside the Green Deal they offer support in the domestic sector, especially to the vulnerable consumer and hard to treat homes.

The Importance of the Green Deal and “ECO”

These two schemes run hand in hand, which enables many households and businesses to improve their energy efficiency ratings, therefore using less energy and thus saving money.

“ECO” will focus more on those householders who have higher energy efficiency problems that will incur costs to rectify, such as vulnerable and low income households and those living in harder to treat properties.

A recent survey showed that a quarter of UK's carbon emissions come from energy used in homes, with a similar amount emitted from businesses, industry and workplaces.

To reduce the risk of dangerous climate change in the UK, Britain needs to be more energy efficient. Thus, The Climate Change Act 2008 legislated and set legally binding carbon budgets across all sectors of the UK economy including homes and communities.

Domestic Customers

The success of the Green Deal will be the consumer’s protection. However, in the event of a problem arising, a clear and accessible scheme is vital.

Consumers are protected throughout the Green Deal through:

  • Impartial online advice website;
  • Protections on the selling of the Green Deal;
  • Consent required for the improver to obtain information.
  • Authorised installers working to industry approved standards.
  • Clear obligations on Green Deal participants working within a regulated Code of Practice.
  • Clear confirmation procedures before payments are collected.
  • Collection of the charge through the electricity bill, regulated by Ofgem
  • Clear processes to follow when a property changes hands so they know about the Green Deal scheme.
  • Clarifying before a customer enters into a Green Deal plan, situations arising that a customer may be required to pay the Plan off early.