Ofgem scores own goal, says CLA.

23 October 2013

The CLA has urged the Department for Energy and Climate Change (DECC) to change new guidance which could see landlords having to move into their rental properties to obtain an energy grant.

The Association said guidance from Ofgem about the Energy Company Obligation (ECO), a grant designed to help insulate solid wall properties, means landlords have to have a bill payer in place to ensure energy efficiency work is carried out.

CLA President Harry Cotterell said: "This is an own goal by Ofgem. Bringing traditional properties up to an energy efficiency rating of 'E' is very difficult because they are without cavity walls. Therefore, it is likely landlords will instal solid wall insulation in properties that are between tenants and empty.

"However, part of Ofgem's guidance says invasive upgrading work can only occur while a bill payer is in residence, which is impractical and unfair. This potentially means a landlord would have to move into the property in question while work is carried out."
Mr Cotterell added: "We are urging DECC to liaise with Ofgem so that the ECO grant can be properly implemented without causing unnecessary disruption to landlords and their tenants."

Ofgem issued guidance about the requirements of the Energy Company Obligation (ECO) to large energy suppliers on 13 March 2013. The ECO grant is worth up to £760million per annum for hard to treat homes and will work alongside the Green Deal and other finance sources to reduce UK greenhouse gas emissions by 34 percent to 2020.  By 2018, domestic and non domestic properties should reach an energy efficiency rating of E.

Read the guidance.