NHF: Federation dismayed by delay over green energy incentive for homes

Friday, 11 March 2011 12:00 AM

The National Housing Federation today said it was disappointed by the government's decision to delay introducing a green energy incentive scheme for domestic homes for another year - and warned millions of poorer households would pay the price in the short term as a result.

The Department of Energy and Climate Change announced that a £860 million programme will seek to encourage householders and businesses to reduce their dependence on fossil fuels and cut carbon emissions by 44 million tonnes by 2020.

The Renewable Heat Incentive (RHI) offers payments for heat generated from renewable energy sources. But whilst, schools, hospitals, charities and other public sector buildings can all benefit from the scheme from day one, low income households and housing associations will have to wait until 2012.

The Federation, which represents England's housing associations, said the delay was unnecessary and would deny hard up families the prospect of lower energy bills that renewable heating would offer.

The Federation's London regional manager, Olivia Powis said: "The government's decision to delay the full renewable heat incentive to the domestic sector is bad news for tenants and the environment. Whilst we welcome the decision to combine the RHI with the forthcoming Green Deal, the interim measures of the £15m 'Premium Payment' programme for the domestic sector will not be available to all.

"The delay is unnecessary, unjustified and only serves to add to growing sense of confusion over the scheme within the sector."

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