§ Mr. ChopeTo ask the Secretary of State for the Environment, Transport and the Regions what the estimated cost is of administering the Home Energy Efficiency Scheme in England in 2000–01; and what the average cost is of administration fore ach grant paid. [153531]
§ Mr. MeacherThe Home Energy Efficiency Scheme is managed by Eastern HEES Ltd. in the East of England, and by the Eaga Partnership in the rest of England. The two scheme managers are responsible for marketing the scheme to eligible households; carrying out independent surveys of properties; advising and agreeing with householders the most appropriate measures for their home; recruiting heating and insulation contractors through open competition; and managing payments to contractors for work completed.
The fees paid to the scheme managers consist of a fixed monthly element and a variable amount paid for each household where work has been completed and invoiced. In addition the Department paid start up costs of £2,485,000 in the period between award of contract in March 2000 and the start of the new scheme on 1 June 2000.
Excluding these one-off costs, the total scheme management costs between 1 June 2000 and 31 March 2001 are estimated to be £18,906,000 (excluding VAT). This is based on the 134,555 households for whom work orders have been placed with installers during the year. This equates to an average cost per household of £141.
This estimate does not allow for profit clawback clause included within the contract with the Eaga Partnership, and the not-for-profit basis of Eastern HEES. These two factors will reduce the actual fees paid by the Department this year.
The average cost per household figure reflects the relatively slow start to the scheme during the period June-August 2000. The coming financial year will represent the first full year of operation for the new scheme. The total number of homes improved is expected to increase substantially, thereby reducing the average cost per household.