The flurry of negative press that accompanied its birth made some fair points. There was the headline-grabbing news that only five households had signed up so far. In fairness, the scheme wasn’t launched until Monday, so the real story was that households hadn’t signed up to a scheme that wasn’t open, but still… More worrying was the news that participants could face interest rates of up to 9 per cent. And the consumer press rightly highlighted concerns that householders do not understand the deal, that its implications at the moment of sale have not been fully worked through, and that the “golden rule” of finance repayments coming in at or under the level of efficiency savings is beginning to look decidedly tarnished.
But here’s the rub. The Green Deal is happening. In fact, it’s happened – it’s here. As far as energy companies are concerned, the time for argument is over. Because it is the energy companies on the front line in this particular battle for public opinion. The government has performed a masterful two-step, mandating the policy but leaving energy companies to implement it. Press headlines may be focusing on “red-faced ministers” at the moment, but we all know it’s only a matter of time before energy companies start taking the rap for every individual Green Deal failure, and taking it hard.
And that couldn’t come at a worse moment. Public trust in energy companies is at an all-time low, poisoning the relationship between provider and customer at the very moment that relationship must be at its strongest. How can energy providers help consumers change their consumption habits if there’s no trust in the relationship? It makes a mockery of any demand-side initiative. You can’t install insulation if you can’t get past the front door.
So energy companies have a choice. They could revert to the status quo, the defensive position of attacking the government for introducing the Green Deal in the first place, while half-heartedly meeting their mandated obligations to the few householders savvy enough to ask for them. Or they could do the unexpected. They could grab hold of the Green Deal with both hands, put their considerable resources into finding solutions to its problems, and work individually and collectively to pass on to consumers a better Green Deal than ministers delivered to them.
The latter option is harder, but ultimately more rewarding. And we’re willing to do our bit at Utility Week. We’ll chronicle the highs as well as the lows of the Green Deal – so if you’ve got something you’re proud of, email me on ellen.bennett@fav-house.com or tweet UW_editor.
Ellen Bennett
This article first appeared in Utility Week’s print edition of 1st February 2013.
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