Thirteen firms including E.ON and RWE warn Deputy Prime Minister that funding delays have put flagship energy efficiency policy ‘in jeopardy.’ The consortium said it has postponed meetings until it receives crucial £40m government funding. In total, the Green Deal Finance Company is seeking £300m
A group of companies expected to finance the government’s Green Deal energy efficiency scheme have issued a stark warning to the Deputy Prime Minister that its flagship policy is in jeopardy as a result of funding delays.
Thirteen companies, including E.ON and SSE, wrote to Nick Clegg on Wednesday to inform him that they have halted work on a Green Deal Finance Company – a non-profit consortium that will provide low-cost loans to homeowners wishing to install energy-efficiency measures when the Green Deal launches in October.
The letter, seen by BusinessGreen, was signed by executives from a host of Green Deal providers including Carillion Energy Services, Gentoo, Insta Group, Kingfisher Future Homes, The Mark Group, RWE npower, Scottish Power Energy Retail, SIG, Willmott Dixon and Wolseley.
The Green Deal Financing Company (GDFC) was expected to launch this year, acting as a “national aggregator” that can bundle Green Deal loans to a level where they can access the capital and bond markets, reducing rates of interest to around six per cent.
However, the consortium said it has postponed meetings until it receives crucial £40m government funding that is required to kick-start investments in new IT systems and an office.
In total, the Green Deal Finance Company is seeking £300m of government funding, most of which is expected to come from the £3bn Green Investment Bank (GIB). It is currently unclear whether the initial £40m will come from the GIB or whether it will be delivered in two tranches of £20m.