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UTILITY Week 20th June 2014

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utILItY WeeK | 20th - 26th June 2014 | 13 Special report Eco consultation opened: 5 March 2014 Expected announcement on Eco changes – July 2014 Eco Consultation closed: 16 April 2014 Original Eco end date: 31 March 2015 Proposed new Eco end date: 31 March 2017 Labour's price freeze promise: 24 September 2013 Roll back green levies promise: 23 October 2013 Autumn statement: 5 December 2013 2017 2013 Four years Green Deal: 2013-indefinite Energy Company Obligation (Eco): 2013-17* 2014 2015 2016 2017 ▲ ▲ ▲ ▲▲ ▲ ▲ ToTal progress Towards eco obligaTions (approved and noTified measures) CERO CSCO CSCO rural sub-obligation HHRCO 100% 80% 60% 40% 20% 0% 20% 40% 60% Total progress towards obligation Monthly progress towards obligation cumulaTive overall progress Towards eco obligaTions (approved measures only) Progress towards obligation (%) % approved % notified % outstanding % towards CERO % towards CSCO towards HHCRO % towards rural sub-obligation 80% 100% 0% Chart shows all measures notified to the end of March 2014 and approved by the end of April 2014 as a percentage of the total phase 1-3 obligations This fall is highlighted in the amount of work completed under Eco compared with Cert. In the last quarter of 2012 under Cert, 127,000 cavity walls and 340,000 los were insulated. In the first quarter of 2014 under Eco, only 109,116 cavity walls and 25,903 los were insulated. Because of this fall in the amount of work completed, a result of both the new scheme and the proposed changes, about 20,000 jobs will be lost, according to estimates from the Institute for Public Policy Research (IPPR). For the solid wall insulation industry, for instance, the proposed target has been set at 100,000 installations by 2017. More than 50,000 solid wall insulation measures have already been completed, so the work is expected to "drop off " significantly. Neil Marshall, chief executive of the National Insulation Association (NIA), warns that delays and uncertainty while the gov- ernment finalises its plans "could result in a lack of activity and projects being put on hold – or worse still cancelled". He says the industry faces another "tran- sitional period" and that it is vital for Decc to "finalise and implement any changes as quickly as possible and ensure that appro- priate measures are put in place to maintain momentum", and prevent the impact on the sector getting worse. Customers The scaling back and cancellation of insu- lation and energy efficiency projects affects customers as well as suppliers. Peter Broad, energy policy manager at Citizens Advice, puts it simply: "Energy efficiency is the only long-term way to ensure that bills are controlled." Shadow energy minister Caroline Flint says Eco was struggling even to maintain the status quo. "Eco will li fewer people out of fuel poverty in ten years than fell into fuel poverty last winter alone," she states. Oct 12-Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 39% 1% 86% 25% 19% 28% 2% 89%

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