Green Deal – Energy Act 2011
The Energy Bill became the Energy Act 2011 after receiving Royal Accent on the 18th October 2011. The Energy Act will affect the way in which energy efficiency is measured in homes and businesses and will allow secure low-carbon energy supplies and fair competition in the energy marketplace.
The Energy Act includes requirements on:
The Green Deal
Developing a new financial procedure that enables the terms of fixed improvements to the energy efficiency of households and non-domestic properties, which is funded by a charge on energy bills that avoids the need for consumers to pay upfront costs.
The Private Rented Sector
From April 2016, private residential landlords will be unable to refuse a tenant’s reasonable request for consent to energy efficiency improvements where a finance package, such as the Green Deal and/or the Energy Company Obligation (ECO), is available.
The Act will also ensure that as of April 2018, it will be prohibited to rent out a residential or business premise that does not reach a minimum energy efficiency standard.
Energy Company Obligation (ECO)
The Act amends existing statutes in the Gas Act 1986, Electricity Act 1989 and the Utilities Act 2000 to facilitate the Secretary of State to create a new ECO that will:
- Replace the existing obligations to reduce carbon emissions (the Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP)), which are due to expire at the end of 2012.
- Target appropriate measures at those households likely to need additional support – in particular those containing vulnerable people on low incomes and in hard-to-treat housing.
All households and businesses will be entitled to an energy efficiency assessment, carried out by a certified assessor.