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Community Energy Programme Axed

Posted: 30/03/2006

The Combined Heat And Power Association (CHPA) has reacted with dismay to the news that the sole funding programme for the development of public sector community heating schemes - Defra's Community Energy Programme (CEP) - has been withdrawn. The announcement was made in the Governments recent revised Climate Change Programme report.

The Community Energy Programme has already provided, via both capital grants and grants for feasibility studies, low-cost heat and power solutions for nearly 200 public sector schemes, and has built up a portfolio of potential projects worth a total of £200 million.

Only 15 months ago (8 Dec 2004) DEFRA allocated an additional £10 million to continue the programme, and Margaret Beckett, Secretary of State for Environment, Food and Rural Affairs, said: "This strategy spells out how we intend to make a step change in energy efficiency and successfully deliver the transition to a low carbon economy. In doing this, fuel bills will also be reduced...

...high on the list of priorities are... Continuing the £50m Community Energy Programme, which delivers heat networks to reduce energy bills, tackle fuel poverty, reduce carbon emissions, support CHP, and build modern urban infrastructure. The programme will continue for at least the next three years, to March 2008, with additional funding of £10m available once the original allocation of £50m is exhausted".

CHPA Director Phil Piddington commented "We are deeply disappointed to see that the significant community heating potential built up in the first round of the Community Energy Programme will now not be realised. The CHP and district heating industry cannot understand why the Government would undertake such a u-turn on a programme that is successfully delivering low-carbon heat and power to communities.

"The Energy Saving Trust have identified that projects supported to date by the Programme have helped save more than 25,000 tonnes of carbon every year whilst also assisting nearly 60,000 people on low incomes. Community heating provides a powerful opportunity to help tackle the problems of fuel poverty.

"It is thus highly confusing that at a time when we are experiencing a rapid rise in the number of people falling into fuel poverty, the Government has decided to eliminate support for this Programme."

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