The Government has been accused of performing an unfair policy U-turn, which could see councils penalised financially for the poor energy efficiency of school buildings operated through private-finance initiatives (PFIs).
The Environment Agency has issued new guidance on how the Carbon Reduction Commitment (CRC) energy-efficiency scheme applies to PFIs – holding councils responsible for the energy use of the buildings.
The revision has prompted concerns from local government. Climate change consultant, Stephen Cirell, who has been advising councils in London on the CRC, said the move would effectively ‘hold local authorities to ransom over the performance of private firms', and could cost local government millions of pounds. He told The MJ the previous guidance clearly stated local authorities were not responsible for the emissions of PFI schools, where the PFI operator purchased the energy supply.
‘The new guidance changes this and poses a huge problem. This could bring authorities into conflict with PFI providers, which could end up in the courts.'
Amanda de Swarte, head of improvement and efficiency at the London Energy Project, claimed the move defied the whole aim of the policy.
She told The MJ: ‘In the first year, London boroughs will purchase CRC allowances costing about £11.8m. It seems this is now set to increase.
‘These changes were made after the consultation exercise and revised guidance was published. It is concerning that a piece of legislation can suddenly pass liability to local government without any consultation.
‘Giving the risk and responsibility to an organisation which cannot control it is unfair. If the people who design, build, maintain and operate the premises are not obliged to reduce carbon, where is the incentive? Plus, what are other risks, responsibilities and costs that we would expect a PFI operator to assume are going to be handed over in the future?
The mandatory ‘cap and trade' scheme is aimed at reducing UK carbon emissions by 1.2mt a year by 2020. It came into force in April 2010.
