After a delay brought about by the summer recess, on 15 September MPs in the House of Commons debated the Energy Bill. The Bill itself includes the primary legislation underpinning the Green Deal, which will allow consumers to pay for environmentally-friendly improvements to their homes or businesses from the savings they make by using less gas and electricity.
The Bill will also introduce new provisions to help facilitate the roll-out of smart meters and introduce new requirements on energy suppliers to make energy bills clearer.
MPs from all parties supported the Bill as it embarked upon the final part of its journey. Energy and climate change secretary Chris Huhne told the Commons: "The bulk of what this Bill is about is about energy efficiency, which is about energy saving, which of course actually means we will need fewer types of electricity generation”.
Percentage game
Most of the debate focused on the Green Deal and its “pay-as-you-save” scheme for retrofitting energy efficiency measures to homes and businesses across the UK. But there was no discussion of standards of insulation and energy efficiency that will be required, which will have to wait until the secondary legislation.
But a new amendment was passed to require the Government to submit proposals to Parliament on the ways to boost interest in the Green Investment Bank. MPs said they wanted the Bank to have a single interest rate to provide clarity and fairness. This would also force Green Deal providers to "compete for customers on the cost and quality of the energy efficiency measures and installation, rather than on the headline interest rate of the finance".
Green Party MP Caroline Lucas said the new institution should have a common and low interest rate of less than 2%.
End in sight
The Bill is now subject to parliamentary “ping pong” so both Houses of Parliament can consider all amendments that have been made. This final stage of its journey is due to complete on 4 October, after which time the Bill can receive Royal Assent. The Green Deal is expected to be effective in the second half of 2012.
Back to basics
Meanwhile on 12 September 26 trade associations, business groups and environmental organisations urged the Government to reduce that rate of VAT on measures that could be utilised under the Green Deal.
In a signed statement sent to MPs ahead of the Energy Bill debate, the groups argued that a financially compelling package is needed. A consistent rate of 5% VAT is “a logical step” that will make Green Deal packages more attractive.
For more information, follow the links below :-
http://services.parliament.uk/bills/2010-11/energyhl.html
http://www.cutthevat.co.uk/cut-vat-to-stimulate-green-deal-demand120911/
Source: The Informer
.jpg "After a delay brought about by the summer recess, on 15 September MPs in the House of Commons debated the Energy Bill")
