Consultation Man will be going back in his box if the Tories have their way, to be replaced by a more ‘dynamic’ approach to energy policy. But is there more to the consulting process than just a lengthy exercise in delaying decisions?
The Conservatives have long been vocal about the amount of consultations that government engages in – in the energy sector in particular.
Back in February, shadow energy minister Greg Clark attacked Labour for failing to take action on refurbishing our existing housing stock, in favour of launching yet another consultation on how to do it. In its shadow Budget on the topic of “a green recovery” in April, George Osborne quoted the Institute of Public Policy Research: “Why does discussing renewable energy take a whole year? One of the biggest problems around this area is confusion and people not being clear about what the government is doing.”
So finally, at the Tory party conference last month, shadow environment minister Greg Barker promised to simplify the way money is invested in green energy generation, and to “buck the cycle of consultation and be prepared to take risks”.
One of the perks of being in opposition is that you can complain about the machinery of government as if it were the fault of the party in power. But there is at least an element of truth in the Tory claims: the communities department has issued 243 planning and building consultations over the past 11 years – more than 40 were published this year alone. In the past 12 months, the Department for Energy and Climate Change has produced 25 and the business and innovation department has unveiled 24, although not all were to do with sustainability issues affecting construction.
So do consultations really achieve anything? Or do they just beget more consultations, proving the Tories right? Here we take a look at the progress of five of the most significant sustainability consultations of the past few years.
Part L 2006 - Consultation launched in 2004
What did it promise?
That buildings built in 2010 would be 25% more carbon-efficient than buildings built in 2002. One of the ideas for achieving that was to make owners who do a certain amount of work on their property bring the rest of it up to the energy standards of the new Part L, as was already the case in the commercial sector. However, this “consequential improvements” idea did not make it into policy.
What was achieved?
The consultation was received with enthusiasm. David Strong, chief executive of Inbuilt, says the consultation was significant and the consequential improvement test could have made a difference to the energy performance of the existing stock. Otherwise, Part L is meant to do what it says on the tin, that’s if you dismiss concerns about compliance.
Is much still dragging on?
That would be the “consequential improvements” debacle. Even though most of the respondents were in favour of it, it has been pushed to one side ever since and was dropped from the most recent consultation. There’s a belief that it wasn’t introduced because it didn’t pass the “Daily Mail test”. The Association for the Conservation of Energy is threatening to take the government to court if it doesn’t consult on the measure this year.
It has put the fiery Strong off responding to most consultations for life. “I’ve become more cynical and I think government uses consultations to avoid making difficult decisions.”
Has it spawned more consultations?
No, but industry has had lots of fun trying to work out how to update calculation tools SAP and SBEM.
Hot air rating (out of five) : 2
Who thought it was okay to build draughty homes anyway?
Heat and Energy Saving Strategy, closed May this year
What did it promise?
A systematic approach to improving the UK’s leaky housing stock by insulating all lofts and cavity walls in the country by 2015 and taking all other “cost effective” energy efficiency measures by 2030. This would, it was estimated, save 44 million tonnes of carbon dioxide and create 34,000 jobs.
What has been achieved?
Nothing yet. The policy is meant to take over from the CERT mechanism in 2012. This is a scheme whereby energy firms charge users a tariff and then either fit loft insulation or send them low energy light bulbs (mostly the latter). Suffice it to say, retrofitting has a long way to go. The Committee on Climate Change (CCC), which advises the government on green matters, singled out the requirement for a “whole house, whole street approach” if the UK were to meet the legal requirements set out in the Climate Change Act.
Is much still dragging on?
The consultation began to ask some of the questions that might lead to a way of funding this big shift, including hinting at the “pay as you save” system pioneered in the US, whereby homeowners install energy efficiency measures and pay the money back as part of a bill, making an overall saving because they use less power.
Has it spawned more consultations?
At some point, it seems likely that the government will consult on the “pay as you save” scheme, which is being trialled. The Tories are already committed to implementing it.
Hot air rating : 5
Lofty ambitions but still no funding mechanism.
Renewable Energy Strategy, closed June 2008
What did it promise?
To allocate £30bn of incentives for renewable energy until 2020, by which time renewables would account for 15% of the UK’s needs. Heat incentives could provide plenty of work for engineers able to retrofit boilers and power stations. The consultation was the first time the government had taken a good hard look at why the UK produced less renewable energy than any EU country except Luxembourg and Malta and looked at they key issues of planning, the power grid and the supply chain.
What has been achieved?
The UK still produces less than 2% of its power renewably, a woefully low figure.
Next year, feed-in tariffs for electricity will kick in at a level that is not as high as some would like but most believe will make a difference. A recent Cambridge Econometrics forecast, which incorporate current policies and those with firm timetables and details, showed the UK would miss its 2020 targets, and the CCC said the current approach will lead to an increasing dependence on imported gas.
Has it spawned more consultations?
Detailed consultations on the design of electricity tariffs closed last month and draft regulations are expected next month.
The second and third in a series of consultations about the detailed design of renewable heat sources are expected between now and December 2010. Industry is intimately involved through the Renewable Energy Association, but it’s tricky stuff to get right.
Is much still dragging on?
Incentives for renewable heat are still being worked up and are intended to be introduced in 2011; the chilly old UK will continue to pour nice hot water down the drain until then.
Hot air rating : 3
The idea of feed-in tariffs is either long overdue or the type of ludicrous meddling in the free market that led to the collapse of the Spanish solar industry. And are the prices for renewable energy high enough?
Carbon Reduction Commitment, closed July 2009
What did it promise?
To set up a national cap and carbon trading scheme for larger UK businesses not covered by the EU Trading Scheme, which covers large-scale energy and industrial installations. If the price of carbon sufficiently outstrips the penalties, then there should be plenty of work for engineers, consultants and contractors as they retrofit buildings for air-tightness, reduce the carbon intensity of electricity and install low-energy systems. It could save participants about £1bn a year by 2020 and cut carbon emissions by 4.4 million tonnes.
What has been achieved?
Much panic and confusion that may or may not result in practical gains. The dummy scheme kicks in in 2010 and the first sale of allowances will begin in 2011, but consultants and lawyers say a significant number of property managers have still not heard of the carbon reduction commitment (CRC) and still fewer know quite what to do.
Is much still dragging on?
The CRC is a blunt instrument introduced when property balked at the idea of a straight tax. It aims to encompass multifarious types of company under one regime.
But complex property arrangements such as joint ventures or franchise-franchisee relationships are ill-served by the legislation. And although landlords are responsible because their names are on the electricity bill, many are not happy that they will be responsible for something over which they have little control.
Has it spawned more consultations?
The draft order is expected before parliament next year, but expect the landlord–tenant issue to rumble through the corporate boardrooms when the first payment, covering two years of emissions, is due.
Hot air rating : 4
Intellectually stimulating, but so complicated it might not get off the ground at all.
Code for Sustainable Homes, July 2005
What did it promise?
Six graded levels of sustainable housing, with targets becoming more stringent as the years roll by. Points are awarded for sustainable materials, composting facilities, sensible water usage and bike racks. The code also introduced the notion of “zero-carbon homes” long before anyone had tried to work out what this actually meant.
What has been achieved?
The code created more communication within – and beyond – the housebuilding industry than any legislation before or since. Along the way, there has been fury, bewilderment and pride that the UK has the most ambitious targets for new build in the world. There has been a huge change in building practices as a result. Stephen Stone, chief executive of Crest Nicholson, says that level four is “achievable using current technology without affecting delivery”. The £10,000 cost of achieving level four is not as attractive as it once was.
Is much still dragging on?
There’s still the small matter of that zero-carbon definition, which was a “stretching target” when first conjured up. This is either a good or bad thing depending on whether you like your targets aspirational or science-based. When talk became practical, defining it turned out to be mostly a discussion about how far housebuilders could be expected to pay for and manage the installation of renewable energy systems.
Has it spawned more consultations?
No, but it has presided over the birth of industry bodies, including the UK Green Building Council and, latterly, the Zero Carbon Hub. These have been left with the job of trying to define the terms and making sure industry efforts tally with government plans.They have produced the concept of “allowable solutions”, which are essentially government-endorsed methods of offsetting emissions. A final definition of zero carbon is expected by Christmas.
Hot air rating : 2
Housebuilders have come round and green activists are holding their feet to the fire.
No comments yet