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Philip Sellwood - chief executive of the Energy Saving Trust
Philip Sellwood

Question: The Energy White Paper was published earlier this year. What is the Energy Saving Trust's reaction?

Philip Sellwood: We were delighted with the publication of the Energy White Paper earlier this year as it will mean a revolution in the way in which we use and produce energy. The setting of a 60 per cent target for reducing the UK's emissions of carbon dioxide and putting energy efficiency at the heart of energy policy are all major steps forward.

However, for these targets to be delivered, we will need action from government, consumers and industry.

Question: What should the next steps for the government be on this?

Philip Sellwood: The forthcoming pre-budget report in November is a golden opportunity for the government to introduce tax incentives to support energy efficiency. We want to see a reduction in VAT to five per cent for the most energy efficient appliances, a tax on those that are particularly energy inefficient, and reductions in stamp duty for the most energy efficient homes.

The next big milestone for the Energy White Paper is February 2004, which is when the government has committed to publish a White Paper implementation plan. Other key measures that will help deliver the White Paper are the Housing Bill, and building regulations.

Question: Do you envisage fiscal incentives having a role in encouraging energy efficiency?

Philip Sellwood: Yes, they have a fundamental role, without fiscal incentives it could be difficult to deliver the objectives of the Energy White Paper. The use of energy in the home is one of the key contributors to climate change - a quarter of all UK carbon dioxide emissions. It is therefore essential that we give consumers the tools to take action to cut their carbon dioxide emissions.

Fiscal incentives are essential to encouraging consumers to buy energy efficient products. By making energy efficient products more affordable, more consumers will buy them, cut their fuel bills and help reduce their homes carbon dioxide emissions.

At the moment, VAT on energy used in the home is five per cent, while the tax on the purchase of most energy efficient products is 17.5 per cent.

As most people tend to invest in their properties when they first move in we are also proposing reductions in stamp duty rates for energy efficient homes. We think this will give people a real financial incentive to improve the efficiency of their homes.

Question: How important is it that a Housing Bill with provision for the Home Information Pack appears in the next session of parliament?

Philip Sellwood: At the moment, if you buy a house, you have no idea how energy efficient it is and how much it costs to heat.

If you buy a house, you wouldn't dream of not having a survey of some sort to discover whether it's got a hole in the roof or if it's on top of a coal mine. These are both ways in which a house might lose money. But one of the other big money losses is through inefficient energy use. An energy efficient house can deliver on average £200 a year and help add value to your property when you come to sell it.

Homeowners often make their biggest investment in their homes when they first move in. So, the reasons we are interested in getting energy efficiency included in the Home Information Pack are that it will raise consumer awareness of the importance of energy efficiency when buying their home and identify where they need and can make improvements.

European legislation is in the pipeline to ensure all homes are energy-rated. We should take the initiative and ensure homes are energy rated through the Home Information Pack in advance of European enforcement.

Question: What effect has this summer's hot weather had on the issue of energy efficiency?

Philip Sellwood: It's drawn both good and bad attention. Although it has raised the media's interest in climate change, consumers still seem to be unaware.

We recently surveyed consumers and found that 85 per cent were still unaware of climate change and the impact it has on our daily lives. This summer is an example of the type of extreme weather conditions we can expect more of in the future. But of course it won't just be higher summer temperatures; it may also be more frequent and severe floods, droughts and violent storms which will cause damage to people and property.

Question: Energy Efficiency Week takes place this month. What do you hope to accomplish?

Philip Sellwood: This year is the seventh time we've run this campaign. The week aims to raise awareness of climate change and encourage people to take action by cutting down home energy use.

Currently £96 million worth of energy will be wasted during energy efficiency week. We are asking consumers and MPs to pledge to cut down on their energy use. We will be communicating the fact that using less energy is the cleanest, and cheapest way to reduce climate change.

This year's campaign kicks off today and includes a nation wide advertising, media, and direct marketing campaign. EST will be asking consumers to take a few simple and cost-free steps such as switching their lights out when leaving a room to investing in other measures that maximise energy and financial savings such as installing cavity wall insulation, replacing their oil boilers with a high efficiency condensing boiler, and buying "A-rated" energy efficiency recommended fridges and freezers.

Published: Mon, 22 Sep 2003 01:00:00 GMT+01

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