Companies 'holding off' Green Deal amid funding concerns

Monday, 11 June 2012 13:01PM
by Nicolas Frankcom: nicolas.frankcom@uswitch.com
Companies 'holding off' Green Deal amid funding concerns
Companies 'holding off' Green Deal amid funding concerns
Green Deal companies have written to Nick Clegg to say they are 'holding off development further' until the Government provides assurances around funding.

The Green Deal is a government initiative to help provide upfront funding for energy-efficiency measures like insulation due to be launched in October, with the cost of improvements incorporated into future energy bills. 

However, early signatories including npower, E.ON and Marks and Spencer - part of the Green Deal Finance Company designed to kick-start the scheme - have told the government they are halting their efforts. 

Speaking to The Telegraph, a Green Deal Finance Company spokeman noted that not all members had signed the letter and that they were still having “good discussions with the Government”, but confirmed that work on developing the scheme has stopped.

The move represents a set-back for the Government, which has targeted the Green Deal as a key mechanism to help control energy bills and meet emmissions targets. 

The central idea of the Green Deal known as the 'Golden Rule' is that the amount households will save on energy bills will always be greater than the cost of the energy-saving measures.

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