Government announce plans to cut red tape in energy sector

The government have just reported their findings and recommendations to remove "red tape" from the energy sector. Most of the report is actually concerned with the supply side of the industry (generation and distribution), as opposed to reducing demand, but two points do relate to the activities of Elmhurst Members. It is suggested that:

1) There is overlap between schemes such as  CRC Energy Efficiency Scheme [CRC] and Energy Savings Opportunity Scheme [ESOS] and the Climate Change Levy [CCL]

2) ECO delivery should be simplified with consideration of a deemed scoring approach to calculate carbon savings.

Perhaps the most surprising thing is neither of these observations is particularly new. Elmhurst members will have read articles on the proposed amalgamation of ESOS and CRC (Latest News article "Government looking to Streamline energy efficiency rules for Business."  dated November 2015) and our concerns about the introduction of deemed scores (Latest News article "DECC and OFGEM looking to change rules for new ECO for April 2017" dated February 2016).

 Nobody can argue for maintaining red tape because its a term which by definition suggests the thing to be unnecessary. Rules, regulations and process are normally put in for good reason, to solve a perceived problem. The Government and industry need to understand the reasons for their creation, the consequences (both intended and unintended) of their removal and other processes that may be necessary to safeguard technical standards and the public purse.

The full report is available here

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