The Northern Ireland Authority for Energy Regulation seeks views on the Energy Efficiency levy

The Northern Ireland Authority for Energy Regulation (the Authority) issues a consultation paper entitled “The Northern Ireland Energy Efficiency Levy - A Review”

The Northern Ireland Energy Efficiency Levy has been operating for almost 10 years. That it has been successful in assisting in the alleviation of fuel poverty, providing energy and carbon savings and delivering customer benefit is an unassailable fact as borne out by Annex A attached.

The Authority would now welcome views in its review of the levy. Particularly, but not exclusively, we would like your comments on the following points:

(i) Is there a continuing justification for a levy on customers?;

(ii) Is there a case for a further annual increase in the levy to say, £10 per customer?

(iii) Should there be an equivalent levy on natural gas customers?;

(iv)Are there alternative models for supporting energy efficiency and fuel poverty eg the GB EEC model?

(v) Given that Government through the Department of Social Development has significantly upped its contribution to the eradication of fuel poverty in Northern Ireland (up from £3.4m in 2001/02 to £20.4m for 06/07 and £20.4m for 07/08), which was not the case when Ofreg committed levy money of £1.6m pa in 2001/02, should the emphasis of levy money not switch away from fuel poverty now and focus on energy efficiency and carbon savings?

(vi) Is the administration of the levy carried out in a sufficiently transparent manner that suppliers/ project co-ordinators are comfortable with?

(vii) Given that the levy is well established, successful and accepted in its current format, is change required?

Timetable

The Authority would welcome your views and you are asked to submit these to the “Authority” via Gerry Donnelly, Room 4, 5th Floor, Queens House, 14 Queen Street, Belfast BT1 6ER by the 30 June 2006. E mail address is gerry.donnelly@ofregni.gov.uk.

The Authority will notify you of the outcome of the review once it has considered all submissions and well before a call for projects for the 2007/08 year