Source · Select Committees · Business and Trade Committee
Recommendation 36
36
Deferred
Bring forward energy efficiency funding, prioritise home retrofit, and reform the EPC rating system
Recommendation
Energy efficiency is the quickest and most cost-effective way to reduce gas demand and lower household energy bills. If significant strides are not made to reduce demand, it will become increasingly challenging and expensive to decarbonise 106 Decarbonisation of the power sector the electricity system. We call on the Government to bring forward the £6 billion funding package for energy efficiency allocated for the period 2025 to 2028 to now. The Government should prioritise delivering a locally co-ordinated programme of energy efficiency and home retrofit. This should be paired with a communications campaign on the benefits of home improvements and fuel switching. We recommend that the Government uses new powers in the Energy Bill to urgently reform the flawed EPC rating system, so that it gives a more accurate reflection of overall energy use and emissions, as soon as the Bill is enacted. (Paragraph 166) Delivery risks to the Government’s 2035 target
Government response summary AI-generated
The government's response details Ofgem's mandate and the efficiency targets and funding allocated within electricity network price controls RIIO-ED2 and RIIO-T2, focusing on network costs, but does not address recommendations for energy efficiency funding, home retrofits, communications, or EPC reform.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
81. Reducing energy demand is a key aim of the Government, which was set out in the Net Zero Growth Plan. The Government’s aim is to reduce, by 2030, final energy consumption from buildings and industry by 15%. The Energy Efficiency Taskforce has been established to lead this ambition, with a focus on stimulating private investment and increasing green finance options, as well as galvanising supply chains and increasing public and business engagement with energy efficiency. 82. The Government is already investing £6.6 billion in energy efficiency over this parliament, with further support launching this summer through the £1 billion Great British Insulation Scheme. Further details of the additional £6 billion of funding from 2025–2028 will be announced in due course. This funding will provide long-term investment certainty, supporting the growth of supply chains, and ensuring we can scale up our delivery over time. 83. The Government and Ofgem recognise the need for a local area-level approach to deliver the best network for each local area, by responding to their specific needs. To achieve this, the Government and Ofgem are working together to consider the role that local and regional energy planning could play in delivering net zero, as well as supporting efficient network planning. This includes considering the respective roles of national governments, local government, a Future System Operator, distribution network operation and other key stakeholders for energy planning. 84. The Government has also agreed to pilot a devolved approach to building retrofit from 2025 in the devolution deals with Greater Manchester Combined Authority and West Midlands Combined Authority, to test the benefits that this approach can deliver. 85. The Government agrees that more direct communication is required with consumers to grow awareness of energy efficiency benefits. To support this, the Government has Decarbonisation of the power sector: Government Response 17 launched a phoneline service and consumer advice website as part of a three-tiered consumer advice and information offer, which will include local in-person advice in due course. 86. On EPCs, work is ongoing on proposals to improve EPC metrics, and the Government intends to consult on these, taking account of recently published proposals from the Climate Change Committee. Furthermore, the Government has an ongoing programme of user research to improve the way in which information is presented on Energy Performance Certificates. Delivery risks to the Government’s 2035 target
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