Chamber and committees

Local authorities have the client role for work under the Universal Home Insulation Scheme and are responsible for the procurement of all services required. This includes both the installation of energy efficiency measures, and the work associated with this in terms of marketing, signing up households, survey work, energy advice, etc. Councils are responsible for carrying out procurement in accordance with all relevant legislation, and for ensuring that installers are suitably qualified and experienced, have in place the necessary insurances, etc. In 2010-11 work was awarded both to large insulation installation companies working on a national scale, and to smaller local installers, including social sector businesses. The network of Energy Saving Scotland Advice Centres (ESSACs) played a key role in most projects, particularly in relation to energy efficiency advice, and identifying households eligible for the Energy Assistance Package (EAP).

An announcement detailing the awards of funding for the second round of UHIS was announced on 26 September. Schemes are currently getting underway across the country.

Bids submitted by councils for funding from the Universal Home Insulation Scheme were assessed in the first instance by officials, who reported to a Bid Assessment Panel made up of representatives of a range of organisations with an interest in the Scheme, including COSLA, the Fuel Poverty Forum, and Energy Action Scotland. Bids were assessed against criteria which reflected the agreed objectives of the Scheme, i.e., to reduce carbon emissions and fuel poverty.

The recommendations of the Bid Assessment Panel were then considered and agreed by COSLA’s Leadership Board.

A key criterion was that bids should demonstrate how the area selected, and the design of the scheme proposed fits with the council’s Local Housing Strategy. The approach to energy efficiency set out in these strategies is in turn expected to take account of Scottish Government guidance, Addressing Climate Change in Local Housing Strategies. This Guidance emphasises the need for councils to analyse the physical characteristics of the stock in their area, and the distribution of fuel poverty, and to plan the investment made through energy efficiency programmes accordingly.

A further criterion required bids to provide evidence of fuel poverty in the area chosen, together with evidence of the physical capacity of the stock in the area to take insulation measures.

The role of local authorities has been critical to the success of the Universal Home Insulation Scheme. The criteria for awards of funding, and processes for bid assessment which have been put in place are designed to ensure fairness and transparency in resource allocation, while recognising the benefits of councils developing schemes which reflect their local needs and circumstances.

Local authorities are responsible for selecting areas and designing schemes supported through the Universal Home Insulation Scheme (UHIS). They do so with reference to their existing local housing, energy efficiency and fuel poverty strategies. A key criterion for the award of funding under the Scheme was that bids should provide evidence of levels of fuel poverty within the area chosen.

The approach to encouraging take-up varies between schemes. However most involve direct mailing to all households within the chosen area, and many follow this up by sending out teams of trained Home Energy Assessors, who carry out door-to-door visits to offer Home Energy Checks, and explain what is offered under the Scheme. Callers to the Home Energy Scotland Hotline will also be advised of the support offered if they live in a UHIS area.

Local authorities were required in their bids to confirm that arrangements would be put in place to ensure close integration between UHIS and the Energy Assistance Package (EAP), which is specifically aimed at assisting the most vulnerable households. Following the awards of funding, guidance was issued to local authorities to encourage and assist them in linking their schemes with the EAP, in order that qualifying UHIS customers most in need of support are identified and directed to the measures available. The Cabinet Secretary for Infrastructure and Capital Investment has announced that an extra £5 million will be invested into the Energy Assistance Package this year, taking the overall spending to tackle fuel poverty and improve energy efficiency in 2011-12 to £53 million.

Local authorities are responsible for publicity arrangements for their individual schemes. However, to assist, the Scottish Government has issued guidance on marketing alongside formal offers of grant. Marketing strategies for individual schemes vary, taking into account the nature of the scheme, local geographical factors, relationship with other local initiatives, etc. Most schemes involve direct mailing to all households within the chosen area, and many follow this up by sending out teams of trained Home Energy Assessors, who carry out door-to-door visits to offer Home Energy Checks, and to explain what is offered under the Scheme. Callers to the Home Energy Scotland Hotline will also, if appropriate, be advised of the support on offer through the Universal Home Insulation Scheme.

It is estimated that for every 10 socially rented houses constructed per annum (whether by a council or a registered social landlord) approximately 18 full-time equivalent jobs are supported, directly and indirectly, across the Scottish economy during that year.

As announced on 5 October, I set out the action this government is taking to tackle fuel poverty. We have increased funding for fuel poverty in the Spending Review and also boosted this year’s budget by an additional £5 million. Funding for Fuel poverty and Energy Efficiency programmes will be £65 million in 2012-13 and in 2013-14 – rising to £66.25 million in 2014-15. That is a 35% increase on the £48 million being provided in 2011-12 and illustrates very clearly the importance given to supporting households affected by fuel poverty. Energy prices are a reserved issue but ministers will continue to act. The Scottish Government has committed to holding a fuel summit in partnership with Consumer Focus Scotland and other consumer interests which will address the actions which can be taken to minimise the impact of the recent price rises on consumers.

The Scottish Government will assist housing associations finance renewable heating schemes through a number of programmes. The district heating and Communities and Renewable Energy Scheme (CARES) loan schemes both provide housing associations with the opportunity to access funding to develop renewable heating schemes. Our £50 million Warm Homes Fund will also deliver renewable energy and energy efficient homes in those communities worst affected by fuel poverty. The Scottish Government also encourages housing associations to access funding through the UK Government’s Renewable Heat Premium Payment Scheme. £3 million of the £15 million programme has been set aside for registered social landlords to improve their housing stock.

The Scottish Government does not hold this information. However, our £2.5 million district heating loan scheme will enable connection of 305 households to renewable district heating networks within the next two years. This funding will also enable project network expansion at a future date to more than double the number of households – to over 600. A further £5 million has been allocated to continue the scheme over the next three years, allowing the potential to at least double these figures again over the next five years.

The Scottish Government does not hold a central comprehensive record of the number of homes supplied by district renewable heating schemes. However, from the information available to us, there are at least 1,876 homes connected to a renewable district heating system in Scotland. This includes some systems which have a low carbon element.

The Scottish Government has established a task group on renewable heat to advise on priority issues in order to increase development of renewable heat. The Scottish Federation of Housing Associations (SFHA) is represented on the group. We will also shortly establish an Expert Commission to advise on the delivery of district heating in Scotland. Housing associations can also get free independent help by contacting the Energy Saving Trust and will benefit from heat mapping as the roll out of the pilot exercise in the Highland Council area continues.

Housing associations are eligible to apply to the Scottish Government district heating and Communities and Renewable Energy Scheme (CARES) loan schemes and both schemes will continue as a result of future funding confirmed in the recent Spending Review. We are also encouraging housing associations to access the UK Government’s Renewable Heat Premium Payment Scheme which has £3 million set aside for registered social landlords.