Press Release:
EEC Success Poses Problems

Release Date 01 August 2006

Workers in the UK insulation industry could be left with little to do and face possible unemployment after new results show that energy suppliers are further ahead than thought in meeting their energy efficiency targets.

The Government urged the insulation industry to expand and prepare for high workloads, but now figures released by Ofgem show that the expected peak demands are unlikely to materialise.

In its review of the first year of the Energy Efficiency Commitment 2005-08, the energy regulator reveals that by the end of the first year of this programme suppliers had delivered sufficient energy-saving measures to meet almost 60 per cent of the overall three-year target – with one supplier already having met 84 per cent of its target.

Neil Marshall, Chief Executive of the National Insulation Association, said: "These figures show that suppliers are well ahead of their targets and so, logically, we could now expect to see a downturn in demand. The insulation industry stepped up when asked by the Government to help meet EEC targets rapidly. Now our members are being asked to wait until the next EEC programme is started before they can work again at the workload capacity they've invested heavily to achieve."

The NIA, which represents the manufacturers and installers of cavity wall, loft insulation and draught proofing, wants work brought forward from the next phase of EEC so that workload can be better planned.

"We're in danger of losing capacity again which will suddenly be required when EEC3 starts in 2008," added Neil Marshall. "The industry needs – and deserves – more certainty to enable long-term planning for the future."


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