An Bord SNIP recommends the end of the SEI Grant

An Bord SNIP recommends SEI Energy Efficiency Grants be “rationalized”

€40 million to be cut from SEI grants.

The recent report from An Bord SNIP nua has recommended that the energy efficiency grants available from SEI be “rationalized”. The savings to be made by this rationalization of SEI grants have been identified as €40 million. Whether this would leave anything in the kitty to allow for the survival of the grant scheme is debatable, however the wording in the report left little to hope for.

Regulation rather than subsidy.

The report states that “the benefits (of energy efficiency) are already well appreciated by consumers and energy prices are a stronger determinant of consumer behaviour. Such programmes should be promoted routinely by the energy companies, under regulatory requirements if necessary.” This implies that a regulatory focus rather than a subsidy is favoured by an Bord SNIP where presumably a carbon tax and higher energy prices will replace the need for a subsidy.

Short term pain.

This is a long term strategy which does nothing for business stimulation in the short term. To work this strategy also requires some parallel action, if you remove the carrot of the grant you need to introduce the stick of a carbon tax or regulation at the same time.

READ THE FULL REPORT HERE pages 43/44