Chamber and committees

Scottish Government funding for area based fuel poverty schemes is distributed across all councils in Scotland. £42 million of the £60 million available is allocated on the basis of need which takes into account levels of fuel poverty and reflects the different types of properties within rural areas. This ensures that funding is directed to those areas most in need of assistance, including our rural areas.

This year’s funding will support delivery in off-gas grid areas by providing specific funding to be used to deliver heating and insulation improvements for low-income and vulnerable households who meet the affordable warmth eligibility criteria in off-gas grid properties.

We are also considering how we can use our funding programmes to best meet the needs of off-gas grid households.

We do not hold information on the number of households which have received support under the area based element of the Home Energy Efficiency Programmes for Scotland. We are working with local authorities and other delivery agents to gather this data.

Councils have until September 2014 to install measures funded from the 2013-14 area based schemes programme. Final information on delivery through the area based schemes will therefore not be available until after this date.

However, our area based schemes are designed to work alongside the energy company obligation and, based on quarterly information provided by the Department of Energy and Climate Change, we know that around 32,000 energy efficiency measures have been installed in Scottish households between January and September 2013.

The Procurement Reform (Scotland) Bill introduced to the Scottish Parliament on 3 October 2013 will establish a national legislative framework for sustainable public procurement that supports Scotland’s economic growth through improved procurement practice. It will help tackle unnecessary inconsistencies for suppliers doing business with the public sector and will help ensure that doing business with the public sector can be simple, transparent and more accessible to suppliers, especially SMEs.

Funding for the area based element of our Home Energy Efficiency Programmes for Scotland (HEEPS) is distributed to local authorities. It is for them to determine the most suitable means of procuring the work. However, as part of the criteria for accessing HEEPS funding we are clear that projects should support the local economy as much as possible. Councils are requested to provide details on how their proposed schemes support local economic activity, small businesses and provide opportunities for apprenticeships. This information is considered as part of our assessment of requests for HEEPS funding.

The Scottish Government provides funding to local councils through area based schemes to support households to undertake enabling works to prepare for energy efficiency. In 2014-15 fifteen per cent (15%) of the £60 million area based scheme budget is available to councils for enabling works. This can cover the costs of loft clearance and other preparatory work in advance of the installation of energy efficiency measures.

We have regular meetings with a range of stakeholders to discuss the energy company obligation (ECO) and to work closely with delivery partners on the Home Energy Efficiency Programmes for Scotland. Stakeholders with whom we engage regularly include, amongst others: local authorities, registered social landlords, the National Insulation Association, energy companies, the Fuel Poverty Forum and its energy company obligation (ECO) sub-group. We also keep stakeholders up to date on ECO activity through our regular Scottish Government ECO newsletter and we encourage stakeholders to join the newsletter’s mailing list.

These contacts will inform our response to the UK Government’s consultation on their proposed changes to the ECO.

The Housing (Scotland) Act 2001 set a statutory duty on the Scottish Government to eradicate fuel poverty in Scotland, as far as reasonably practicable by November 2016. The Scottish Fuel Poverty Statement was published in August 2002 and last reviewed in November 2010. The next review is planned to be published by the end of 2014.

The following table shows the number of households whose installations have been completed (i.e. passed inspection) and for which the Scottish Government has been invoiced for both the Energy Assistance Scheme and stage 4 of the Energy Assistance Package in the period April to December 2013. The Scottish Government will publish data for the full 2013-14 financial year in due course.

Installations completed under stage 4 of the Energy Assistance Package relate to applications made prior to 1 April 2014.

The recent consultation generated 80 responses and the final report will be published by 14 March 2014. There is currently considerable support for domestic energy efficiency within Scotland, and the structural funds must not duplicate that provision, and either fill gaps or create enhanced support. The provision of home energy efficiency has therefore not been considered the highest priority for the use of the funds. In terms of wider energy support, the 2014-20 programmes will focus primarily on supporting energy initiatives in the non-domestic sector to support SME growth, innovation and the development of the low carbon economy. In addition, an intervention aiming to support active community partnership models and projects is under consideration; this could create opportunities for domestic energy and micro-renewable schemes at a community level.

The Energy Efficiency Standard for Social Housing is anticipated to be published shortly following constructive discussions and engagement with the representatives of social landlords and local authorities.

The Regulation of Energy Efficiency in Private Sector houses working group will make recommendations to Scottish Ministers on draft regulations that would set minimum standards of energy efficiency in existing private sector housing. Draft Regulations are expected to be published for consultation in spring 2015.