Consumer groups air Green Deal concerns in letter to Ed Davey

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A number of consumer groups have warned that the government's Green Deal - designed to help cut energy bills and carbon emission levels by providing aging homes with insulation - could fail if reforms aren't made to its financing scheme.

Greenpeace, Which? and the World Wildlife Fund for Nature, along with the National Pensioners Convention and manufacturer of energy efficiency products, Knauf Insulation, according to BusinessGreen, have banded together to write to Energy and Climate Change secretary Ed Davey.

In the letter, dated July 2, the groups have warned that: "in its current form... the Green Deal and Energy Company Obligation (ECO) risks not delivering for consumers, the economy or the environment."

They also argued that the focus placed on solid-wall insulation in the Green Deal could cause demand for loft-cavity and cavity-wall insulation to fall dramatically. The letter states: "This means that you propose forging ahead with a policy that could have a devastating impact, not only on consumers' ability to cut their energy bills, but also on the home insulation industry, while seriously undermining attempts to cut carbon emissions."

In a bid to reduce their carbon footprint, many people are turning towards the tariffs provided by green energy suppliers.

Concerns have also been raised about the decision to ring-fence 41 per cent of the ECO element to provide funding for the installation of insulation measures - to aid those in fuel poverty. The groups have made it clear that they believe this decision could undermine similar programmes aimed at helping poorer communities in the United Kingdom.

Ed Davey, however, has said that he remains confident that the deal will prove to be successful.

Shadow Climate Change minister, Luciana Berger though has aired doubts and has argued that changes need to be made to the deal.

She stated: "To be successful the Green Deal must be a good deal for hard pressed consumers struggling to meet the cost of sky high energy bills.

"This letter is yet another stark warning to the Government that their current plans don't add up.

"To make the Green Deal work, ministers should keep to their commitment and use the Green Investment Bank to provide the Green Deal finance at an affordable rate for families and businesses."

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