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GDHIF Scheme Closed!

Changed my mind, please DO shoot the messenger and put me out of my misery!  Not sure I can take much more bad news in one week, NIA called it “Black Tuesday” but it has now become “Black 2013/14”!  “Due to overwhelming demand” the GDHIF has been shut, according to a DECC press release.  Reportedly £60m more GDHIF vouchers have been registered in the last 2 days!
Sorry, but am I the only person here thinking that someone has scammed the system?  Setting aside the sharks who are selling solid wall insulation for free and even offering cash back when the voucher is supposed to be a maximum of 75% of the cost, surely in order for so many vouchers to have been registered in such a short space of time it must be a speculative sell?  In order to register a voucher, all you need is an EPC reference number and a GDI or GDP name to pick from a drop down list.  It wouldn’t take a brain surgeon to work out you can get the EPC reference number from the Landmark register and from the same source also find out which homes are solid wall in or around your vicinity?
So there you are, Mrs Miggins in 22 Acacia Avenue, sitting at home in your 2 bed mid terrace solid wall house. “Ring Ring”.  [Call centre operative] Hello madam, did you know I have a voucher here with your name on it entitling you to £6,000 of free home improvement grants?  Plus better still, I can give you £1,000 cash back!  I would like to be proved wrong, wouldn’t it be marvellous if all £120m of GDHIF vouchers had been given to genuine customers who will all ultimately go ahead with the works?

ECO Consultation Correction

 In our last newsletter we summarised the changes to be made as a a result of the Future of the Energy Company Obligation consultation.  There was a lot to read through and summarise and in my haste I had missed off a few minor details or misreported points (tut tut) related to HHCRO changes.  The information below therefore clarifies or corrects the information.
  • The HHCRO insulation 35% uplift will apply only to homes which are non-gas
  • Boiler replacements will need an installation warranty but storage heaters will just need a warranty which presumably just mean the manufacturers warranty?
  • Energy suppliers will not be able to retrospectively request installation warranties to be put in place for boilers to enable them to be carried forwards at the higher rate.  (This comment was tongue in cheek!)
  • HHCRO boilers which were installed after the 1st january 2014 will be able to be carried forwards, not 1st April as I had previously indicated
Correction advised by Andy Edwards at AE Energy Solutions
  • There will be a minimum HHCRO rate of 25p for companies based in Wales (can’t remember seeing that in the document but sure he wouldn’t fib to me?)

CERO Or As We Now Call It, ZERO

Russell, our trusty National Contractor Manager, took out his best fag packet yesterday and started running some calculations on the back of it.  If you are of a nervous disposition please look away now.
The original CERO target was 20.9 million tonnes, with 33% off that gives us 14 million tonnes.
As at the end of March the suppliers were reported to have delivered 39% of the CERO target for phases 1-3, including the infamous quarantined narrow cavity jobs.  39% of 20.9Mt = 8.15Mt. This delivery will now receive a (whopping) uplift of 1.75 which wipes away 14.26 million tonnes from now 14 million tonne target. I think you are getting the picture?
By the end of May, the suppliers had delivered a further 2% of the original 20.9Mt CERO target, a further 0.4Mt.
In the consultation financial impact assessment it was estimated that suppliers would carry over 4.1 million tonnes of CO2 and that of this, 15% was estimated to be categorised as CERO, an extra 0.6Mt million tonnes chipped away.
So 20.9 million, tonnes less 6.9 million for the 33% cut, less delivery to the end of March including a 1.75x uplift totalling 14.26 million tonnes , less delivery from April onwards of 0.4 million tonnes, less CERT carry over of 0.6 million tonnes, leaves a grand total of –1.26Mt million tonnes of ZERO to deliver.
Insulation installers, please pop the lights off as you close up your depots to save some extra energy, the Government could do with all the help it can get to meet its legally binding targets ;-)

CSCO Or As We Now Like To Call It, ISCO (the Installer Saving Community Obligation)

The CSCO target for ECO 1 was (is) 6.8 million tonnes.  The consultation impact assessment indicated that of the 4.1m tonnes of carry over from CERT and CESP to ECO, 85% of it was expected to be allocated to CSCO.  So that is 3.5 million tonnes leaving a target of  3.3 million tonnes.  The most recent Ofgem statistics show that energy suppliers have delivered a total of 31% of the 6.8Mt CSCO target, 2.1 million tonnes so far.  This would indicate a remaining balance of 1.2 million tonnes or 50,000 cavity wall jobs to do by March 2015.  Fingers crossed energy suppliers will keep up momentum on CERO to boost these numbers and keep the industry busy?
I would be delighted to hear from any other statistician who believe I have my sums wrong but the NIA concurred that CERO is now “ZERO”.

Sorry, I don’t make the news I just report it :-(

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