The Green Deal opened for business in January. Figures released by the Department of Energy and Climate Change (Decc) this month (March) show that so far, 1,803 assessments have been completed, with 1,729 of those taking place in February. Seventy-seven organisations have been accredited to provide Green Deal assessments; 619 accredited as advisers; and a Decc spokesman confirmed that by the end of February, 40 companies had been authorised as Green Deal providers.
The department also revealed that more than £26.9 million-worth of contracts have been traded through the Energy Company Obligation (Eco) brokerage system. This system allows Green Deal providers to anonymously sell lots of future energy efficiency work to energy companies at auctions every two weeks.
Energy secretary Ed Davey told MPs at oral questions that this was “an excellent start” to the programme and that the government was encouraged by the early adoption rates. Gemserv, the oversight and registration body for the Green Deal, is also encouraged. Jonathan Harley, implementation manager at Gemserv, says its helpdesk, which deals with assessors, installers and providers, receives around 800 calls a month. Harley also reports that since February the Green Deal section of the Gemserv website has received a “big spike in interest” with more than 600,000 web page views, both from consumers and suppliers.
However, these glad tidings have to be balanced with a view presented to delegates at a Westminster Energy, Environment and Transport Forum event this month that there has been a lot of interest but not much action. Andrew Warren, chairman of the Green Deal Advisory Forum, says: “It does have great potential to deliver, but it is going to need extra stimuli. We need to see a coherent plan across government.”
In particular, there seems to be a lack of action from the big energy suppliers. Commenting on its preparations for the scheme, Eon Energy says: “We will be a part of Green Deal in the future but we are currently exploring all options around becoming a Green Deal provider, be that individually or as a combined offer with selected partners.”
SSE tells Utility Week: “We are still in the process of developing our customer offering for Green Deal and Eco and have yet to announce any pricing structure or special offers.”
When Utility Week asked RWE Npower in January about its progress on the Green Deal, the organisation was in the process of employing new staff and integrating new software and did not expect to have its back-office systems up and running until the end of February. The company has yet to comment on any further developments.
A spokesperson for EDF Energy expects the company to “begin offering detailed assessments of how people can benefit from the scheme in April, once the government has formally approved its status as a Green Deal provider”. However, despite this late start, the organisation clearly intends to commit to the scheme. “The company aims to install thousands of energy efficiency improvements – such as cavity walling, loft insulation and energy efficient boilers – in homes throughout Britain under the scheme,” the spokesperson says.
Scottish Power intends to “become an accredited Green Deal provider in 2013”, but is cautious about commenting on its efforts on the Green Deal. A spokesperson says: “We are closely monitoring consumer demand for Green Deal plans”, adding that he expects “the market will pick up as more providers, assessors and installers become accredited, as there is access to Green Deal finance, as the systems become fully operational and as general awareness increases”. However, he acknowledges: “High levels of customer satisfaction and positive word-of-mouth communication from early adopters is vital for the Green Deal to really take off.”
Of the big six energy suppliers, only British Gas has given any detail about its progress with the Green Deal. A spokesperson says: “We’re fully committed to the success of the Green Deal and have trained over 120 Green Deal energy experts – the most in the UK – to deliver Green Deal assessments nationwide.”
The company says nearly 4,500 households have already booked a Green Deal assessment with British Gas, 2,600 assessment visits have been completed, 5,000 people have pre-registered with the business to learn more about the Green Deal finance plans and it has received 12,800 calls regarding the scheme. The spokesperson adds that its “Green Deal cashback scheme has got off to a great start and we’re planning to launch the new funding scheme shortly”.
Despite the soft launch of the Green Deal in October and its official start in January, three months on and most of the major energy companies still appear to be unprepared for the government’s flagship energy efficiency scheme. In part, this is because they have other priorities, given changing demands and increasing expectations from both government and customers. As one industry source comments: “The mood is bad – there’s just too much change.” Moreover, many – for example Scottish Power – have prioritised delivering on Eco over the Green Deal (beyond servicing the requirement to charge, bill and collect Green Deal costs via the electricity bill).
Another reason for the slow start is that suppliers are still scrutinising the fine detail of how the Green Deal will work. Industry insiders tell Utility Week that digesting a 170-page manual on Eco reporting has put a brake on early Eco activity – possibly also delaying progress on the Green Deal. An SSE spokesperson says: “We are still working to comply with the requirements of the Office of Fair Trading, Green Deal Code of Practice and Green Deal Oversight and Registration Body in order to provide customers with excellent customer service and a clear proposition.”
As yet, government and other organisations involved with the Green Deal are reluctant to criticise the big energy companies about their efforts to make progress on the scheme. A Decc spokesperson says: “We expect that some energy companies will consider that the Green Deal is a market they want to enter early, others will be focusing first on Eco. Ultimately it is for each company to decide their approach.”
Harley of Gemserv says: “Each company is well within its rights to take a proactive stance when they feel strategically ready, and that is the right thing to do.”
Meanwhile, the Energy and Climate Change Committee is keeping a watching brief on the response to the Green Deal. Suppliers should be prepared either to embrace the Green Deal or to face criticism for their failure to do so.
Kathy Oxtoby is a freelance journalist
This article first appeared in Utility Week’s print edition of 29th March 2013.
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