Insulation ahead of target

Energy and Resources Minister, Gerry Brownlee, says the government ‘s home insulation scheme is exceeding expectations in its first month of operation.

The Warm-Up New Zealand Heat Smart scheme started on July 1st.

"In the first four weeks I am pleased to report that 3,282 homes have been retrofitted," said Mr Brownlee.

"The figures collated by EECA show that 2,519 homes received insulation only, 255 received insulation and a clean heat appliance, and 508 with just a clean heating appliance."

"In terms of the types of houses being retrofitted 1,983 (60 percent) of the homes are owned by Community Service Card holders, and 1,299 are general income houses.

"The first month is a very positive indicator for the scheme. The government set a target of insulating 27,500 houses in the first year and this start-up month indicates we will easily achieve that," said Mr Brownlee.

"This has also been achieved in just the early roll out stage and before contracts have been signed to bring on even more service providers," he said.

"EECA has recently opened applications for new service providers. It received 249 applications which are currently being processed. New providers will be operational from 1 October, which will herald a serious step-up in insulation work," said Mr Brownlee.

"I am aware there has been some suggestion at this early stage that the government grants have inflated prices, although the advice I've received from EECA is that there is no indication of a widespread problem."

"And it is important to make the point the scheme is designed to make sure there is no price gouging. For example the new contracts given to providers from October 1st will ensure that only service providers offering the best prices and quality standards are selected to deliver the programme," said Mr Brownlee.

The applications also allow EECA to gauge the appropriate market prices and to only enter into contracts with service providers who will offer acceptable prices.

"It also means once contracts are signed, service providers cannot increase their pricing without negotiating with EECA. There is also an auditing process undertaken by EECA which will monitor prices being charged and take the action of cancelling service provider contracts if necessary," he said.

"Can I also thank the Greater Wellington Regional Council for its decision today to participate in the scheme from September of this year. "

The Council will provide a grant of up to $2,600 per ratepayer to fund the remaining cost of insulation and heating above the government subsidy.

Ratepayers will be able to repay this grant through their rates over a 10-year period.

"This is a welcome and useful development because it removes any up front costs for Wellington ratepayers who wish to insulate their homes," said Mr Brownlee.