EON SE, SSE Plc and U.K. units of Electricite de France SA and RWE AG contributed to 244 million pounds ($375 million) of finance to help pay for energy efficiency upgrades in Britain’s 26.9 million homes.
The utilities were among 16 members of the Green Deal Finance Company and other groups that provided 69 million pounds in loans to the organization set up to finance home improvements, the company said in a statement. The Department of Energy and Climate Change supplied 25 million pounds of that sum and committed 50 million pounds in further facilities.
The U.K. Green Investment Bank provided 125 million pounds in senior debt, according to the statement. The Green Deal Finance Company plans to boost the total to 300 million pounds, using a loan from the European Investment Bank with negotiations expected to finish in coming months, according to the statement released yesterday.
The Green Deal is part of Britain’s efforts to shield consumers from rising wholesale gas prices amid prolonged cold weather while curbing emissions by reducing energy use. The program aims to make the nation’s homes more efficient through measures such as loft or wall insulation paid for by a charge added to power bills. The goal is for the charge to be smaller than the savings that result from the measures.
The funds, signed March 12, will help set up operations and supply finance for providers of Green Deal measures at an initial interest rate of 6.96 percent a year.
Department of Energy and Climate Change commitments comprise a 20 million-pound junior capital facility, to be used if demand for plans is reached prior to securing further investment and a 30 million-pound contingent capital agreement, to be used if non-repayment on plans reaches a certain level.
The Green Deal, started in January in England and Wales and February in Scotland, has booked 9,268 home assessments to date, government data show.