The role of local authorities and other local partners is likely to be key in ensuring effective and intensive delivery of the ECO and Green Deal in particular areas. The Government believes that many natural incentives will exist allowing effective partnerships to form, and no particular regulatory requirements are needed to encourage this.
What will the Local Authorities role be in the Green Deal?
LAs are key local partners in the Green Deal and might choose to deliver the Green Deal, either directly themselves or in partnership with commercial partners and local organisations.
What will the Local Authorities role be in the ECO?
In respect of the ECO they are likely to act as partners, adding value by, for example, providing information on local housing stock, and endorsing and helping market company activity, using their position as a trusted interlocutor with households to increase local acceptance and take-up.
What work is already taking place?
We are aware of LAs across whole counties, local enterprise partnerships and social enterprises coming together to consider how they might deliver the Green Deal to benefit all their communities and businesses. These partnerships recognise the synergies and opportunities that Green Deal offers with other local strategic priorities around local economic and physical regeneration, improved health outcomes, reduced fuel poverty and supporting the maintenance and generation of local jobs and skills.
Why would Local Authorities want to engage with the Green Deal?
Many LAs already have a significant track-record of partnership with energy companies and others in delivering energy efficiency improvements (e.g. through CERT & CESP) both to individual households and on a community wide basis at the local level, and we expect them to build on this best-practice under the Green Deal.
In practice, there will be strong natural incentives and varied opportunities for LAs to engage with and deliver the Green Deal, in particular the ability to attract new sources of finance into their local areas to benefit local communities and businesses.
What are you doing to get The Local Authorities to engage with the Green Deal?
We are working closely with local government both directly and through the Local Government Association. Their response has been very encouraging. Many LAs are already planning to deliver the Green Deal, either directly themselves or in partnership with commercial partners and local organisations.
How will retaining the Home Energy Conservation Act (1995) (HECA) help Local Authorities engage with the Green Deal?
Many LAs are already making plans to deliver the Green Deal. Retaining HECA will enable us to understand their plans for Green Deal, the potential scale of delivery and where local authorities might require further support.
What will Local Authorities be required to do under the Home Energy Conservation Act (1995) in the future?
We have amended HECA so that local authorities can report on the Green Deal in their “energy conservation reports”. It is for the Secretary of State to issue guidance setting out the timetable of reports under HECA and details of what these reports should contain.
We will work with local government to develop fresh guidance once the details of the Green Deal have been finalised. We therefore envisage publishing HECA guidance in early 2012.
The Green Deal is a market led initiative which will enable people to make energy efficiency improvements to their homes and businesses at no upfront cost. An innovative new finance mechanism sits at the heart of the Green Deal, enabling people to repay the charge through their electricity bills. We commissioned Deloitte to look at the possible accounting treatment of the Green Deal charge in further detail.
In light of the financing and reporting restrictions which apply to some public sector entities, this report focuses on the potential accounting treatments of the Green Deal for public sector and quasi-public sector participants.
The report is not intended to cover an exhaustive list of considerations but highlights some of the key issues likely to be relevant.
This report was commissioned by DECC from Deloitte and contains theoretical accounting treatments. The report is not intended to form advice to anyone other than DECC and therefore DECC does not accept any liability or responsibility if the report is relied upon in any way.