Brussels, 05/02/2013 (Agence Europe) - On 5 February, the European Commission approved the public aid of around €700 million (£600 million) that the United Kingdom intends to grant as part of its energy efficiency improvement plan for buildings, the “Green Deal”. According to the Commission, the advantages of this plan in pursuit of the energy efficiency objective promoted by the EU clearly outweigh any possible distortion to competition caused by the granting of aid.
Under the “Green Deal”, private companies may offer upfront energy efficiency investments to citizens and then recoup payments through energy bills. Clients would face no upfront costs as they would only pay a monthly charge added to their electricity bill. They would only pay for such an investment as long as they remain in the building concerned. Any charge created by an investment must be less than the expected savings. The British Green Investment Bank (GIB) contributes to this mechanism through a special financial vehicle. Initial concerns raised by the Commission about GIB's involvement in the Green Deal have been alleviated by commitments to ensure that GIB will withdraw from this market when private investors step in. (FG/transl.fl)