Anne-Marie Trevelyan has been urged by a wide-ranging coalition of sustainable energy bodies to hand over control of the Energy Companies Obligation (ECO) funding to local authorities.
A letter to the minister of state for energy sets out a six-point plan of measures that should be included in the heat and building strategy, which is due to be published in the next few weeks.
This include giving responsibility over planning for heat decarbonisation and energy efficiency, with control over funding, including ECO.
The letter says that local strategic planning developed by councils in partnership with key stakeholders including network operators, is the most efficient way of delivering place-based low carbon heating with the appropriate technology in homes. This planning should be done on a street-by-street basis and backed up with central guidance and funding to support a comprehensive programme.
The letter also says for UK regions should be given a formal governance role over the future of critical energy infrastructure, including delegated powers from the regulator, to guide the networks’ investment planning, appraisal and delivery processes.
And network operators must make strategic investments in line with plans and priorities set out by local authorities, to enable heat decarbonisation.
The letter, which was co-ordinated by sustainable energy centre of expertise Regen, also urges the introduction of a utility style approach for supporting the development of ground arrays in order to spur the take up of ground source heat pumps.
Drawing on analysis carried out by Regen, it says that replacing the up-front cost of ground arrays with a standing charge would help to bring the typical 30-year total cost of air and ground source heat pumps to “at least” parity.
The letter also urges an end to the distortion, which result from environmental levies being paid on electricity bills, by implementing a carbon levy scheme based on the carbon intensity of heating fuels.
Madeleine Greenhalgh, policy and advocacy manager at Regen, said: “Years of stop-start policies have left the UK languishing on the starting blocks in the race to decarbonise homes and buildings. The industry, much of which is made up of small, local companies, is in urgent need of a clear plan from the government – the heat and buildings strategy is therefore critical to allow the industry to expand, create new jobs and skills, and build a robust supply chain.”