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Energy Bill becomes law

20 October 2011

The Coalition Government’s Energy Bill became law today. The Department for Energy and Climate Change (DECC) is concerned that more than half of UK homes have insufficient insulation and say “It is vital, therefore, that action is taken to address home energy efficiency”.

The Energy Act establishes the legal framework for the “Green Deal”, to be launched next year. The aim is to provide finance for homeowners to install energy saving measures such as improved insulation. The loan will be repaid through the savings on energy bills. The likes of British Gas and HSBC have joined forces to provide the finance, though it is yet to be seen what level of interest homeowners will be charged.

The Energy Act also tightens up the requirements for privately rented accommodation, making it unlawful from 2018 to rent a house or business premise that has less than an “E” energy efficiency rating.

It remains to be seen whether the Energy Act and the Green Deal are successful in improving home efficiency.

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