§ Mr. BellinghamTo ask the Secretary of State for Trade and Industry how much the pilot scheme developed by the Energy Services Working Group to scrap switching rules for energy supply is estimated to cost in each of the next five years. [142143]
§ Mr. TimmsThere are no costs to the Government, apart from the administrative costs relating to evaluation of the pilots. The trial relaxation of the 28-day rule for energy service contracts enables energy companies, if they wish, to market energy service packages to their customers as an alternative to a supply contract only. We expect this to be profitable for companies to do, while, at the same time, consumers will benefit from reduced energy bills as a result of the energy efficiency investments that companies make in their homes.
§ Mr. BellinghamTo ask the Secretary of State for Trade and Industry what estimate she has made of the effect on energy efficiency of the pilot scheme developed by the Energy Services Working Group to scrap switching rules for energy supply in each of the next five years. [142144]
§ Mr. TimmsThe Government expect that energy services contracts will deliver a reduction of at least 10–15 per cent. in energy use in households that sign up to them. The actual reduction in a household will depend on the energy efficiency measures that are carried out as part of an energy services contract. In a typical 1960–70s semi-detached house heated by gas, an insulation package consisting of cavity wall insulation. topping up the loft insulation and improved insulation on the water tank could save over £130 per annum compared to previous running costs.
As part of the trial relaxation of the 28-day rule, energy companies will be able to offer energy service contracts to up to 4 per cent. of their customers or 50,000 customers whichever is the larger. In total, nationally, up to one million households could benefit.