Post on 21-Mar-2020
The Green Deal for
Housing Associations
Plenary six: Legal framework –
Green Deal requirements
Speaker:
Bill Hull, Partner, TLT Solicitors
Chair:
David Orr, Chief Executive, National Housing Federation
TLT LLP
Introduction
• Big decision – how to participate in Green Deal?
• Look at options/issues for participation:-
• As Green Deal Provider?
• Other regulated roles – Green Deal Assessor or
Installer?
• Partnering?
• Solely as landlord?
TLT LLP
Legislative Regime
• A new scheme, so lots of new rules
• Energy Act 2011
• Multiple pieces of secondary legislation, especially the
Green Deal Framework (Disclosure, Acknowledgement,
Redress etc) Regulations 2012
• Code of Practice – see DECC website
TLT LLP
Green Deal Provider (1)
• Consider pros and cons of participation:-
• see HCA paper of July 2012
• control over works vs. bad debt and guarantee risk
• multiple relationships to manage
• Access to ECO brokerage – may need to be Provider
TLT LLP
Green Deal Provider (2)
• Must be authorised – apply to Green Deal Oversight and
Registration Body (ORB)
• Have Consumer Credit Act (CCA) licence
• Enter into Green Deal Arrangements Agreement (see
DECC website):
• With electricity suppliers
• Standard (but complex) terms
• Comply with Code of Practice
TLT LLP
Green Deal Provider (3)
• Green Deal contract terms must comply with:
• Code of Practice
• Consumer Credit Act requirements (where
applicable), including cancellation rights
• Unfair Terms in Consumer Contracts Regulations
TLT LLP
Green Deal Provider (4)
• Installation of measures must be backed by guarantees:
• Minimum 5 years for functioning of measures (or 25
years for wall insulation)
• Minimum 10 years (or 25 years for wall insulation) for
consequential damage
• Must be insurance backed
TLT LLP
Green Deal Provider (5)
• Responsible for handling complaints:
• Specific requirements in Code of Practice
• Includes warranty/damage claims
• Note debt collection position:
• Green Deal Provider not collecting directly
• Reliant on energy supplier – see Green Deal
Arrangements Agreement
• Bad debt risk must be considered
TLT LLP
Green Deal Provider (6)
• Enter into Green Deal Plan with tenants/homeowners
• Finance offer
• Contract – installation and repayment
• Green Deal finance package must meet "Golden Rule":
• Based on Assessor's report
• Total repayments not exceeding estimated bill
savings
• Other measures could be installed – BUT outside
Green Deal
TLT LLP
Green Deal Assessor (1)
• Must be certified (accredited):
• Apply to certification body (e.g. Energy Saving Trust)
for certification
• Demonstrate compliance with "Assessor Services
Specification" – see DECC website
• EPC experience a good starting point
TLT LLP
Green Deal Assessor (2)
• Carry out assessments, make recommendations in
advice report, as to measures:
• Assessor could be tied to a Green Deal Provider
• BUT advice must be given impartially, in accordance
with the Code of Practice
• Minimum insurance requirements apply
TLT LLP
Green Deal Installer (1)
• Must be certified (accredited):
• Apply to certification body (e.g. Energy Saving Trust)
for certification
• Demonstrate compliance with PAS 2030:2012 –
specification for assessment services
• Gas Safe or MCS = compliant for particular
measures
TLT LLP
Green Deal Installer (2)
• Carry out installation work, under contract with Green
Deal Provider:
• Comply with Code of Practice
• In practice, offer guarantees/warranties to back-off
Green Deal Provider guarantees and liability for
sanctions
TLT LLP
Redress/Sanctions (1)
• If Green Deal participant breaches requirements:
• Tenant/homeowner may seek redress through Green
Deal Ombudsman service
• Secretary of State has power to impose sanctions
• Other legal action may occur e.g. damages claim for
negligent advice or breach of contract, claim that
"unfair" contract terms not enforceable
TLT LLP
Redress/Sanctions (2)
• In addition to risk of suspension/withdrawal of
authorisation, financial sanctions:
• Can arise through cancellation/reduction of Green
Deal Plan and/or financial penalties up to 50k per
breach
• Will fall on Green Deal Provider in relation to Installer
breaches
TLT LLP
Partnering
• Seek to partner with external organisation
• Emerging models for large scale partnering e.g.
Birmingham, Warm-Up North
• Particular issues:-
• Limited to endorsement, or active JV involvement?
• Access to funding?
• Public procurement?
TLT LLP
Landlord Issues
• Informal partnering/endorsement of provider?
• Tenant initiated works:–
• Landlord consent may or may not be required
• Type of lease/lease terms
• Landlord initiated works: -
• Tenant consent as bill payer
• Challenge – blocks of flats
• Exposure to Green Deal charges for vacant properties
TLT LLP
Key Points
• Multiple options for participation
• Lots of issues to consider - guidance document such as
HCA paper will be useful
• Legal points arise with all forms of participation, but
especially as authorised Green Deal Provider
TLT LLP
For further information
Bill Hull
Partner, TLT LLP
Tel: 0117 917 7808
Mobile: 07786 515801
Email: bill.hull@tltsolicitors.com
Website link:
http://www.tltsolicitors.com/expertise/g/green_deal