Transparency of energy grant funding

Cheryl Ladding made this Freedom of Information request to Office of Gas and Electricity Markets

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The request was partially successful.

Dear Office of Gas and Electricity Markets,
Could you please send me a copy of the mechanism by which you are intending to look at where local authorities spend grant funding for CESP and CERT schemes.

If grant funding is claimed for a scheme and leaseholders are charged a proportion what mechanism is there to ensure grant money is proportionately passed on per property?

When a local authority fails to pass on this money to leaseholders where can they publicly check to see what funding has been obtained for their property?

What mechanism is in place to ascertain if grant funding has been claimed and, if it has been knocked off a leaseholders bill?

Are there rules concerning the actual efficiency of properties and the alleged efficiency?

Where do members of the public need to look to find factual local information to ensure that such grant funding is not being abused by local authorities?

If there is no such transparency and fairness what do you intend to implement?

Yours faithfully,

Cheryl Ladding

FOI, Office of Gas and Electricity Markets

Ms Ladding, I acknowledging receipt of your request which I will be forwarding to the CESP team.

Paul Kitcher
Head of Information Management
Information Management and Technology
9 Millbank
London
SW1P 3GE
Tel: 020 7901 7011
www.ofgem.gov.uk

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Andrew Abraham, Office of Gas and Electricity Markets

1 Attachment

Dear Ms Ladding,

 

Thank you for your e-mail requesting information under the Freedom of
Information Act. We have responded to your questions in turn below:

 

1.Could you please send me a copy of the mechanism by which you are
intending to look at where local authorities spend grant funding for CESP
and CERT schemes.

 

Ofgem response: CESP and CERT are obligations on the energy suppliers and,
for CESP only,  electricity generators (collectively the obligated
parties), to save a prescribed level of lifetime savings over the duration
of the programmes. Energy suppliers and generators achieve these
obligations by subsidising energy efficiency measures for domestic
households, including those under social housing providers (SHPs), which
include local authorities. Ofgem is concerned with the type, scale and
quality of the measures installed, but the method of delivery is for the
obligated parties to determine individually. This includes how they
contract work with SHPs.

 

2.If grant funding is claimed for a scheme and leaseholders are charged a
proportion what mechanism is there to ensure grant money is
proportionately passed on per property?

 

Ofgem: The level of funding provided by suppliers to a housing provider in
order to fulfil their obligations under CESP or CERT is likely to be
subject to a contract between the two parties. Ofgem is not involved in
constructing such contracts, nor does it have sight of them. Leaseholders
may wish to seek legal advice as to their rights and liabilities under
their leases.

    

3.When a local authority fails to pass on this money to leaseholders where
can they publicly check to see what funding has been obtained for their
property?

 

Ofgem: Funding of schemes is agreed between obligated parties and SHPs.
Ofgem does not hold details of these agreements (contractual or
otherwise). Ofgem cannot provide guidance as to whether individual SHPs
will disclose this information.

    

4.What mechanism is in place to ascertain if grant funding has been
claimed and, if it has been knocked off a leaseholders bill?

 

Ofgem: As indicated above, Ofgem is not involved in the funding
arrangements between obligated parties and SHPs. Leaseholders may wish to
seek legal advice as to their rights and liabilities under the leases.

    

5.Are there rules concerning the actual efficiency of properties and the
alleged efficiency?

 

Ofgem: Measures installed have to conform to Ofgem’s technical standards
(which can be found [1]here) and the relevant building regulations and
safety standards.  Schemes undertaken by obligated parties are also
subject to technical monitoring (an independent inspection of the works
undertaken) and are required to report the results to Ofgem. Actual
efficiency achieved will depend on a number of factors, including consumer
behaviour.

 

6.Where do members of the public need to look to find factual local
information to ensure that such grant funding is not being abused by local
authorities?

 

Ofgem: As indicated above, Ofgem does not oversee the contractual
arrangements between SHPs and obligated parties. This information may be
available from the SHP in question.

    

7.If there is no such transparency and fairness what do you intend to
implement?

 

Ofgem: The monitoring of use of funding provided by obligated parties to
SHPs is beyond the remit of Ofgem in administering the CERT and CESP
schemes. Therefore, there is no plan for Ofgem to act in this regard.

 

I trust this resolves your queries.

 

Kind regards,

 

 

Andrew Abraham

CERT Compliance Manager

Environmental Programmes

9 Millbank

London

SW1P 3GE

Tel: 0207 901 3069

[2]www.ofgem.gov.uk

 

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