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Proceeding contribution from Baroness Smith of Basildon (Labour) in the House of Lords on Wednesday, 2 March 2011. It occurred during Debate on bill on Energy Bill [HL].


Energy Bill [HL]

My Lords, the amendments in this group are again about consumer choice and consumer confidence. As we said previously, the main objective of the Green Deal is commendable, although it is possible to go beyond the Green Deal with what is before us. Again, the assessor could potentially also be an improver. There is no problem in identifying measures over and above those which can be provided by the Green Deal which improve energy efficiency. We welcome that. However, there could be a problem with an assessor who is paid or contracted by an installer or a provider, as the noble Lord said previously, as there could be a conflict of interest. In that relationship, who would make the decision on what are the appropriate measures to be undertaken under the Green Deal? Very helpfully, the Minister said in Committee that: "““We must allow the consumer to make the choice, but we must ensure that the choice that he makes is regulated with proper standards””." That is appropriate. Our major concern is that if the assessor tells the customer that a number of measures can be undertaken under the Green Deal, a point made by the noble Lord, Lord Jenkin of Roding, who decides what is appropriate? If the relationship between the assessor and the installer is a financial one, we are then concerned that the customer receives the correct information from the assessor. We have raised this issue before and we are trying to avoid any possible conflict of interest between an assessor and an installer. The Minister also said in Committee: "““In many cases, we envisage the Green Deal provider employing or contracting the assessor. The assessor would identify the potential for energy savings using the standardised methodology””.—[Official Report, 19/1/11; col. GC 66.]" I do not think we have got to the bottom of this difficult point about how the appropriate measures for a home are decided on. In Amendments 12 and 13 we are trying to ensure that any assessment clearly identifies everything that qualifies under the Green Deal. It has to include all energy improvement under the Green Deal; but there is nothing to stop an assessor identifying energy improvements in the early assessment outside the Green Deal or going over and above what the Green Deal includes. Any potential conflict of interest between an assessor’s functions and their connection with any installer or provider can be disclosed in writing. If the improver and the bill payer are aware of that relationship, they are able to make a choice in line with what the Minister said in Committee. That would ensure that at no stage is the improver, the householder, put under pressure, in any way, by an assessor to accept measures that an assessor could be putting forward because of the relationship with an installer. That is difficult and comes back to the independence of the assessor and how that can be achieved. It is similar to the point made by my noble friend Lord Whitty a moment ago. The excellent amendment in the name of the noble Lord, Lord Berkeley, comes back to the points made at the beginning, which the noble Lord was happy to look into further as regards an annual report and having further information. This is the transparency issue. If the Secretary of State can do a cost-benefit assessment, to identify the benefits of the Green Deal, that would give confidence not just to the consumer but also to the energy industry. Much of it will be in terms of the Green Deal and the industry having the confidence to invest in undertaking the Green Deal. I hope that the Minister understands why these measures have been brought forward today. We want to ensure that consumers have absolute confidence that they are not being given information that serves the commercial interests of others and to ensure that whatever measures are recommended to them, or that they choose, are in the best interests of energy efficiency for their homes. I beg to move.


Secondary information

Type
Proceeding contribution
Reference
725 c1088-9 
Session
2010-12
Chamber / Committee
House of Lords chamber
Subjects
Codes of practice Costs Conservation Accidents Carbon Housing Fees and charges Licensing Environment Energy Electricity generation Ofgem Electricity Farms Fuel poverty Insulation Heating Landlords Low incomes Oil Natural gas Property Meters Private rented housing Scotland Tenants Carbon emissions Geothermal power Green deal scheme
Legislation
Energy Bill (HL) 2010-12
Link
View this Proceeding contribution on www.publications.parliament.uk