The Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012

• Citation: S.I. 2012/2079
• Sections: 120

Section 1 Citation and commencement

(1) These Regulations may be cited as the Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012.

(2) Parts 1 to 4 of these Regulations, other than regulations 24(1)(d)(i) and (2) and 26, come into force on the day after the day on which these Regulations are made.

(3) Regulations 24(1)(d)(i) and (2) and 26 and Parts 5 to 7 of these Regulations come into force on 28th January 2013.

(4) Part 8 of these Regulations comes into force—

(a) so far as is necessary for the purpose of enabling the Secretary of State to take action in relation to a breach of the requirements listed in regulation 63 of these Regulations (other than the requirements in regulations 24(1)(d)(i) and (2) and 26), on 1st October 2012;

(b) for all remaining purposes, on 28th January 2013.

(5) Part 9 of these Regulations comes into force on 1st October 2012.

Section 2 Interpretation – general

(1) In these Regulations—

“the 1974 Act ” means the Consumer Credit Act 1974 ;

“the 2007 Regulations ” means the Energy Performance of Buildings (Certificates and Inspections) (England and Wales) Regulations 2007 ;

“the 2008 Regulations ” means the Energy Performance of Buildings (Scotland) Regulations 2008 ;

“the acknowledgment regulations” means, in relation to a property in—

England or Wales, the Green Deal (Acknowledgment) Regulations 2012 ;

Scotland, the Green Deal (Acknowledgment) (Scotland) Regulations 2012 ;

“ the Act ” means the Energy Act 2011;

“accredited assessor certification body” means a person to whom the green deal accreditation body has given accreditation to certify persons as able to act as green deal assessors;

“accredited installer certification body” means a person to whom—

the green deal accreditation body has given accreditation to certify persons as able to act as green deal installers; or

the United Kingdom Accreditation Service has given accreditation to certify persons as able to install—

microgeneration improvements under the MCS ; or

gas boilers and heating systems under the Gas Safe Register scheme ;

“assessor services specification” means the specification for green deal assessors which is stipulated by the code of practice;

“authorised person” means a green deal participant or a green deal certification body;

“bill payer” is the person described in section 1(6)(a) of the Act and, where no electricity is supplied to a green deal property, has the meaning given by regulation 6;

“business” has the meaning given in section 189 of the 1974 Act;

“code of practice” means the code of practice from time to time in force which is to be issued by the Secretary of State pursuant to regulation 10;

“confirmation” has the meaning given in regulation 36(1) ;

“consent provision” means a term of a green deal plan in which the improver confirms that any necessary permissions or consents have been obtained in respect of the improvements installed under that plan;

“consumer credit licence” means a licence granted by the Office of Fair Trading under Part III of the 1974 Act;

“consumer credit modifying step” means a step specified in regulation 64(4);

“disclosure and acknowledgment provisions” means—

sections 12 and 14 of the Act;

chapter 2 of Part 7;

the Green Deal (Disclosure) Regulations 2012 ;

the acknowledgment regulations;

“disclosure document” means, in respect of a green deal property—

in England or Wales, the energy performance certificate;

in Scotland, the energy performance certificate and the recommendations report;

“domestic property” is a building or part of a building occupied as a dwelling, or, if not occupied, intended to be occupied as a dwelling;

“energy performance certificate” has the meaning given by the Energy Performance Regulations ;

“Energy Performance Regulations” means, as appropriate to the location of the property, the 2007 Regulations or the 2008 Regulations;

“energy plan” has the meaning given in section 1(2) of the Act;

“estimated first year savings” has the meaning given in regulation 27(1) ;

“Financial Ombudsman Service” means the ombudsman scheme referred to in section 225 of the Financial Services and Markets Act 2000 ;

“green deal accreditation body” means the body named as the green deal accreditation body in the code of practice;

“Green Deal Arrangements Agreement” means the agreement with persons licensed under section 6(1)(d) of the Electricity Act 1989 (electricity supply licences) to be entered into by green deal providers under regulation 24(1)(b) , regarding the collection of green deal instalments by electricity suppliers;

“green deal certification body” means—

a green deal assessor certification body; or

a green deal installer certification body;

“green deal instalments” means payments in instalments which are payable under a green deal plan;

“Green Deal Ombudsman” means the operator of the Green Deal Ombudsman Scheme appointed by the Secretary of State;

“Green Deal Ombudsman Scheme” means the scheme for investigation and resolution by an independent person of complaints relating to breaches of the consent provision and the relevant requirements which commences on 1st October 2012 ;

“green deal participant” has the meaning given in section 3(1) of the Act;

“green deal property” has the meaning given by section 12(5)(b) of the Act;

“improvement” means an energy efficiency improvement in respect of a property;

“improvement-specific first year savings” has the meaning given in regulation 27(5) ;

“improvement-specific instalment” has the meaning given in regulation 30(3)(c) ;

“improvement-specific payment period” has the meaning given in regulation 30(3)(d) ;

“improvement-specific savings period” has the meaning given in regulation 28(6) ;

“interest” means interest charged on the amount of credit which is provided under an energy plan;

“MCS” means the Microgeneration Certification Scheme or an equivalent scheme accredited under BS EN 45011 ;

“membership list” means in respect of—

an accredited assessor certification body, a list of the persons that body has certified as able to act as green deal assessors, together with the information concerning those persons specified in paragraphs 1 to 3 and section 3 of Schedule 1;

an accredited installer certification body, a list of the persons that body has certified as able to act as green deal installers, together with the information concerning those persons specified in paragraphs 1 to 3 and section 5 of Schedule 1;

“mortgagee” means a person who has a charge in respect of a property and includes, in Scotland, a person in whose favour a heritable standard security has been granted in respect of a property;

“non-domestic property” is a building or part of a building that is occupied other than as a dwelling, or, if not occupied, is not intended to be occupied as a dwelling;

“payment period” means the period for which instalments are to be paid under a green deal plan;

“qualifying assessment” has the meaning given in regulation 7;

“recommendations report” has the meaning given by the Energy Performance Regulations;

“register” means one of the registers required to be established and maintained by the Secretary of State under regulation 9;

“registrable lease” means, in respect of a property in—

England or Wales—

an unregistered leasehold estate, the transfer, grant or creation of which is required to be registered under section 4 of the Land Registration Act 2002 ;

a terms of years absolute, the transfer or grant of which is required to be completed by registration under section 27 of that Act ;

Scotland, a lease that has been—

registered in the Land Register of Scotland; or

recorded in the Register of Sasines;

“regulated consumer credit agreement” has the meaning given in section 8 of the 1974 Act ;

“relevant first bill payer” means a person who, in respect of a property—

at the time an energy plan is to be entered into—

will be the bill payer; but

will not be the improver; and

will continue to be the bill payer from the time provided in section 1(5) of the Act;

“relevant requirements” means the requirements listed in regulation 63;

“relevant subsequent bill payer” means a person (“P”) who, in respect of a property, at the time an energy plan is to be entered into—

will have contracted to buy the property or to become a tenant or licensee of the property and the improver expects that P will—

become the bill payer only after the plan has been entered into; and

be the bill payer from or after the time provided in section 1(5); or

will have a right to occupy the property other than under an arrangement described in paragraph (a) and the improver expects that P will—

become the bill payer only after the plan has been entered into; and

be the bill payer from the time provided in section 1(5);

“relevant title holder” means a person who, in respect of a property—

in England or Wales, is entitled to dispose of the fee simple of the property whether in possession or reversion;

in Scotland, is entitled to dispose of the property;

“reporting period” means a period of twelve months ending on 30th September, where the first reporting period is to end on 30th September 2013;

“savings period” has the meaning given in regulation 28(1) ;

“subsequent bill payer” has the meaning given in section 6(1)(b) of the Act;

“suspension” means a temporary withdrawal of authorisation of a green deal certification body, a green deal assessor or a green deal installer;

“trigger event” means a change in—

the person who is the bill payer under a plan; or

the use of the credit provided under the plan from—

use X to use Y or use Z; or

use Y to use Z,

where—

“use X” means a use which is wholly for the purposes of a business carried on or intended to be carried on by a person who is the bill payer;

“use Y” means a use which is predominantly, but not wholly, for the purposes of a business carried on or intended to be carried on by a person who is the bill payer;

“use Z” means a use other than one which is wholly or predominantly for the purposes of a business carried on or intended to be carried on by a person who is the bill payer.

(2) Reference in these Regulations to—

(a) a Part by number only is to a Part of these Regulations;

(b) a section by number only is a reference to that section of the Act.

Section 3 Notices

A notice under these Regulations—

(a) must be in writing; and

(b) may be transmitted by electronic means unless the recipient has indicated unwillingness to accept notices in that way.

Section 4 Definitions under section 2(9)

(1) The definitions given in paragraph have effect for the purposes of Chapter 1 of Part 1 of the Act and for the purposes of these Regulations.

(2) The following have effect—

“energy”, except in section 2 and regulation 28(2), means electricity;

“energy bill”, except in section 4(4) and Part 5, means—

where electricity is supplied to a green deal property, a demand for payment issued by the relevant energy supplier to the bill payer in respect of the supply of electricity to the property;

where no electricity is supplied to a green deal property, a demand by the relevant energy supplier for payment of green deal instalments;

“occupier” means, in respect of a property, a person who lawfully occupies a property but is not an owner of it;

“owner”, except in regulations 36 and 37 and Part 8, means, in respect of a property, a person who is—

a relevant title holder;

a tenant under a lease of the property; or

a licensee under a licence of the property,

but does not include a mortgagee not in possession of the property;

“relevant energy supplier” means—

a person who—

supplies energy to a property;

holds a licence issued under section 6(1)(d) of the Electricity Act 1989 (electricity supply licences); and

is a party to the Green Deal Arrangements Agreement; or

where no electricity is supplied to a green deal property, the person who last satisfied paragraph (a) in respect of that property.

Section 5 Definition of “energy bill” for the purpose of section 4(4) and Part 5

For the purpose of section 4(4) and Part 5, “energy bill” means a charge for the supply of any one or more of—

(a) electricity to a property;

(b) heat or hot water to the property;

(c) fuel, other than electricity, used to heat a property or to heat water at a property.

Section 6 The bill payer where there is no supply of electricity to a green deal property

In any period where no electricity is supplied to a green deal property, the bill payer for the purposes of Chapter 1 of Part 1 of the Act and these Regulations is—

(a) the relevant title holder, unless that person has let the whole of the property under a registrable lease; or

(b) the tenant of the property under a registrable lease who has not further let the whole of the property under a registrable lease.

Section 7 Definitions of qualifying assessment under section 3(9)

For the purposes of section 3(9) and these Regulations, an energy efficiency assessment of a property is a qualifying assessment where it is carried out—

(a) by a green deal assessor in accordance with the assessor services specification; and

(b) in accordance with any provisions of the code of practice which apply to qualifying assessments.

Section 8 Authorisation of green deal certification bodies and green deal participants

(1) Subject to paragraph (2), a person (“A”) is authorised as a green deal certification body or a green deal participant listed in paragraph (3) where, under Part 3, A is entered on the relevant register established under regulation 9.

(2) A is not authorised under paragraph (1) where the relevant register shows that A’s authorisation is suspended or withdrawn.

(3) The list referred to in paragraph (1) is—

(a) green deal assessor certification body;

(b) green deal assessor;

(c) green deal installer certification body;

(d) green deal installer;

(e) green deal provider.

Section 9 Registers of green deal certification bodies and green deal participants

(1) The Secretary of State must establish registers of each of the categories of green deal certification body and green deal participant listed in regulation 8(3) (the “registers”).

(2) The Secretary of State must ensure that the information in Schedule 1 (registers) which is shown on the registers is kept up to date.

(3) The Secretary of State must make the registers publicly available free of charge.

Section 10 Code of practice

(1) The Secretary of State must issue a code of practice for green deal certification bodies and green deal participants and make it publicly available free of charge.

(2) The Secretary of State may reissue or revoke a code of practice.

Section 11 Green deal assessor certification bodies

(1) A person may apply to the Secretary of State for authorisation to act as a green deal assessor certification body.

(2) An applicant must—

(a) be an accredited assessor certification body, and

(b) supply with an application—

(i) the information in paragraphs 1 to 3 and section 2 of Schedule 1;

(ii) the applicant’s membership list.

Section 12 Determination of applications and entry on the register

(1) Where an application is made under regulation 11, the Secretary of State must as soon as is reasonably practicable notify the applicant whether the application is granted or refused.

(2) Where the Secretary of State intends to refuse an application, regulation 18 applies.

(3) Where an application is granted the Secretary of State must—

(a) enter the applicant on the register of green deal assessor certification bodies, by including on that register the information in paragraphs 1 to 5 and section 2 of Schedule 1 in respect of the applicant; and

(b) enter the persons on the applicant’s membership list on the register of green deal assessors by including the information in paragraphs 1 to 5 and section 3 of Schedule 1 on that register in respect of each of them.

(4) The Secretary of State must comply with paragraph (3) as soon as is reasonably practicable, but no earlier than 1st October 2012.

Section 13 Green deal installer certification bodies

(1) A person may apply to the Secretary of State for authorisation to act as a green deal installer certification body.

(2) An applicant must—

(a) be an accredited installer certification body; and

(b) supply with an application—

(i) the information in paragraphs 1 to 3 and section 4 of Schedule 1; and

(ii) the applicant’s membership list.

Section 14 Determination of applications and entry on the register

(1) Where an application is made under regulation 13, the Secretary of State must as soon as is reasonably practicable notify the applicant whether the application is granted or refused.

(2) Where the Secretary of State intends to refuse an application, regulation 18 applies.

(3) Where an application is granted the Secretary of State must—

(a) enter the applicant on the register of green deal installer certification bodies, by including on that register the information in paragraphs 1 to 5 and section 4 of Schedule 1 in respect of the applicant;

(b) enter the persons on the applicant’s membership list on the register of green deal installers, by including on that register the information in paragraphs 1 to 5 and section 5 of Schedule 1 in respect of each of them.

(4) The Secretary of State must comply with paragraph (3) as soon as is reasonably practicable, but no earlier than 1st October 2012.

Section 15 Green deal providers

(1) A person may apply to the Secretary of State for authorisation to act as a green deal provider.

(2) An applicant must—

(a) state in an application whether authorisation is sought in respect of—

(i) domestic properties and non-domestic properties; or

(ii) non-domestic properties only; and

(b) provide with an application the information in paragraphs 1 to 3 and 24 of Schedule 1.

Section 16 Determination of applications and entry on the register

(1) Where an application is made under regulation 15, the Secretary of State must as soon as is reasonably practicable notify the applicant whether the application is granted or refused.

(2) The Secretary of State may only grant an application if satisfied that the applicant is a fit person to act as a green deal provider.

(3) Where the Secretary of State intends to refuse an application, regulation 18 applies.

(4) Where an application is granted the Secretary of State must enter the applicant on the register of green deal providers, by including on that register the information in paragraphs 1 to 5 and section 6 of Schedule 1 in respect of the applicant.

(5) The Secretary of State must comply with paragraph (4) as soon as is reasonably practicable, but no earlier than 1st October 2012.

Section 17 Voluntary withdrawal of authorisation of green deal provider

(1) A green deal provider may apply to the Secretary of State for the withdrawal of its authorisation.

(2) The Secretary of State must as soon as is reasonably practicable notify the provider whether the application is granted or refused.

(3) Where the Secretary of State intends to refuse an application, regulation 18 applies.

(4) Where an application is granted the Secretary of State must, as soon as is reasonably practicable, update the register by including the information in paragraphs 6 and 8 of Schedule 1 in respect of the green deal provider.

Section 18 Refusal of an application

(1) This regulation applies where the Secretary of State intends to refuse an application made under regulation 11, 13, 15 or 17.

(2) The Secretary of State must notify the applicant—

(a) of the intention to refuse the application and the reasons for that intended decision;

(b) that the applicant may make written representations to the Secretary of State, and of the period within which they must be made (“the representations period”).

(3) If, after the expiry of the representations period and consideration of any representations, the Secretary of State refuses the application, the Secretary of State must notify that refusal and the reasons for it to—

(a) except in respect of an application made under regulation 15 or 17, the green deal accreditation body; and

(b) the applicant.

Section 19 Requirements which apply to green deal certification bodies

(1) A green deal certification body must—

(a) comply with any provisions of the code of practice which apply to that body;

(b) keep its membership list up to date;

(c) notify the Secretary of State of—

(i) any change to its membership list, together with the information in Schedule 1 which relates to the change;

(ii) the cessation of its accreditation;

within 10 days of the change or cessation occurring; and

(d) provide to the Secretary of State each year a written report which—

(i) for a green deal assessor certification body, contains the information in paragraph (2);

(ii) for a green deal installer certification body, contains the information in paragraph (3).

(2) The information to be included in a green deal assessor certification body’s written report is—

(a) the number of qualifying assessments carried out during the reporting period by persons who were on its membership list during that period;

(b) the number of customer complaints received by the certification body in the reporting period regarding assessments carried out by persons who were on its membership list during that period, and information on how these complaints have been dealt with;

(c) information on any monitoring of assessments carried out by persons on its membership list which has been conducted by the certification body during the reporting period, the findings of any such monitoring and any action taken as a result of monitoring;

(d) any other information which the Secretary of State requests in connection with qualifying assessments carried out by persons who were on the certification body’s membership list during the reporting period.

(3) The information to be included in a green deal installer certification body’s written report is—

(a) the total number of installations carried out in connection with green deal plans during the reporting period by persons who were on its membership list during that period;

(b) the number of such installations carried out during the reporting period by each person who was on its membership list during that period;

(c) the number of customer complaints received by the certification body in the reporting period regarding installations carried out in connection with green deal plans by persons who were on its membership list during the reporting period, and how those complaints were dealt with;

(d) information on any monitoring of installations carried out by persons on its membership list which has been conducted by the certification body during the reporting period, the findings of any such monitoring and any action taken as a result of monitoring;

(e) any other information which the Secretary of State requests in connection with installations in connection with green deal plans by the persons who were on the certification body’s membership list during the reporting period.

(4) A report under paragraph (1)(d) must be provided by 30th November immediately after the end of the reporting period.

Section 20 Changes to a membership list – update to registers

Where the Secretary of State receives notification pursuant to regulation 19(1)(c)(i) that there has been a change to a membership list, the Secretary of State must as soon as is reasonably practicable update the relevant register where a person (“P”) has been—

(a) added to a membership list and does not appear on the relevant register, by including the information in paragraphs 1 to 5, and section 3 or section 5, of Schedule 1 in respect of P;

(b) added to a membership list and appears on the relevant register, by amending the information included under paragraph 6, and including the information, where applicable, under paragraph 7, of Schedule 1 in respect of P;

(c) removed from a membership list, by including the information, where applicable, in paragraphs 6 and 8 of Schedule 1 in respect of P.

Section 21 Cessation of accreditation – update to registers

Where the accreditation of a green deal certification body ceases, the Secretary of State must as soon as is reasonably practicable update the relevant registers by including the information in paragraphs 6 and 8 of Schedule 1 in respect of—

(a) that green deal certification body; and

(b) where applicable, the persons on its membership list.

Section 22 Requirements which apply to green deal assessors

A green deal assessor must—

(a) ensure that any qualifying assessment it carries out meets the requirements of regulation 7; and

(b) comply with any provisions of the code of practice which apply to green deal assessors.

Section 23 Requirements which apply to green deal installers

A green deal installer must comply with any provisions of the code of practice which apply to green deal installers.

Section 24 Requirements which apply to green deal providers

(1) A green deal provider must—

(a) comply with any provisions of the code of practice which apply to green deal providers;

(b) enter into and comply with the Green Deal Arrangements Agreement;

(c) participate in the Green Deal Ombudsman Scheme;

(d) provide the Secretary of State, in such form as may be specified by the Secretary of State—

(i) at the time it complies with section 8(4) in relation to a green deal plan, with the information in paragraph (2);

(ii) each year, in respect of the reporting period, with a report containing the information listed in Schedule 2.

(2) The information to be provided under paragraph (1)(d)(i) is—

(a) if known by the green deal provider, which of the following occupied the property at the time the plan was entered into—

(i) the relevant title holder;

(ii) a tenant under a lease of the property;

(iii) a licensee under a licence of the property;

(iv) an occupier;

(b) where the property was occupied by a tenant at the time the plan was entered into, information on the type of that lease, if known by the green deal provider;

(c) the total amount payable by the improver and the bill payer in respect of the improvements, including any amount payable—

(i) in respect of the installation of the improvements; and

(ii) which is not a green deal instalment;

(d) whether the green deal provider gave the improver or bill payer any cash advance or other incentive to enter into the plan, and details of any such incentive;

(e) details of the green deal installer who installed the improvements;

(f) where the property is a non-domestic property, the type of business that was to be carried on at the property after installation of the improvements.

(3) A report under paragraph (1)(d)(ii) must be provided by 30th November immediately after the end of the reporting period.

(4) The requirement in paragraph (1)(a) applies in relation to an energy plan which the parties to it intended to be a green deal plan, whether or not it became a green deal plan.

Section 25 Notifications concerning consumer credit

A green deal provider authorised in relation to domestic properties must notify the Secretary of State as soon as is reasonably practicable if—

(a) its consumer credit licence is revoked; or

(b) it ceases to be a person not required to hold a consumer credit licence by virtue of section 21 of the 1974 Act .

Section 26 Ensuring energy plans are green deal plans and that instalments can be collected on energy bills

(1) Where a green deal provider is to enter into an energy plan which the parties to it intend to be a green deal plan, the provider must ensure that the following are complied with—

(a) the requirements in section 1(4)(a), (b) and (e); and

(b) the conditions set out in section 4(2) to (9) and 5(2) to (4) and regulations 27, 28 and 30 to 36.

(2) Before the first instalment under a green deal plan is collected by the relevant energy supplier, the green deal provider in respect of that plan must ensure that—

(a) the improvements have been installed in accordance with section 7; and

(b) the conditions in section 8(2) and (4) have been met.

Section 27 Estimates of likely energy bill savings

(1) The green deal provider must estimate the savings on energy bills that are likely to be made in the 12 months after the improvements are installed (the “estimated first year savings”) on the basis specified in paragraphs to (4).

(2) The green deal provider must estimate, in respect of each improvement, the savings on energy bills that are likely to be made in the 12 months after that improvement is installed—

(a) taking into account the structure and fixtures of the property at the time the estimate is made; and

(b) on the assumptions that—

(i) all of the improvements will be installed at the same time; and

(ii) after the improvements are installed the property will be used as specified in paragraph (3).

(3) The use of the property referred to in paragraph (2)(b)(ii) is that—

(a) for a domestic property, its use will be in accordance with the assumed use of domestic properties in the Government’s Standard Assessment Procedure for energy rating of dwellings (2009 Edition, as amended in October 2010) ;

(b) for a non-domestic property—

(i) which is occupied at the time the estimate is made, its use will be the use for which it is occupied;

(ii) which is not occupied at the time the estimate is made, its use will be the use which the improver informs the green deal provider will apply after the improvements are installed.

(4) The estimated first year savings are the sum of the savings for each improvement estimated under paragraph (2).

(5) The estimate made under paragraph (2) is, in relation to an improvement, the “improvement-specific first year savings”.

Section 28 Estimating the period over which savings are likely to be made

(1) The green deal provider must estimate the period over which the savings on energy bills resulting from the improvements are likely to be made (the “savings period”) on the basis specified in paragraphs (2) to (5).

(2) The green deal provider must make a reasonable estimate of the period over which each improvement is likely to result in annual savings on energy bills which are equivalent, after taking into account the effect of likely changes in the price of energy, to the improvement-specific first year savings for that improvement.

(3) Subject to paragraph (4), the green deal provider must, when making the estimate under paragraph (2), include any period when the efficient functioning of the improvement is likely to depend on repairs for expected wear and tear.

(4) The period included under paragraph (3) does not extend beyond the time that the green deal provider estimates that the likely cumulated cost of carrying out repairs for wear and tear will exceed the likely cost of replacing the improvement.

(5) The savings period is the longest of the periods estimated under paragraph (2).

(6) The estimate made under paragraph (2) is, in relation to an improvement, the “improvement-specific savings period”.

Section 29 Conditions to be met for energy plans to be green deal plans

An energy plan is not a green deal plan unless the conditions in regulations 30 to 36 are met.

Section 30 Instalments not to exceed savings

(1) The first year instalments must not exceed the estimated first year savings .

(2) The payment period must not exceed the savings period .

(3) The green deal provider must, before the plan is entered into, notify the improver of—

(a) the improvement-specific first year savings;

(b) the improvement-specific savings period;

(c) the amount of the first year instalments attributable to each improvement (the “improvement-specific instalments”); and

(d) the period over which instalments are to be payable for each improvement (an “improvement-specific payment period”).

(4) The improvement-specific instalments must not exceed the improvement-specific first year savings.

(5) The improvement-specific payment period must not exceed the improvement-specific savings period.

(6) In this regulation “first year instalments” means the estimated total of instalments that are proposed to be payable in the first year of the plan.

Section 31 Payment period not to exceed savings period

The energy plan must not provide for the payment period to end after the date on which the savings period is expected to end.

Section 32 Domestic properties – fixed interest rate

The rate of interest charged under an energy plan for a domestic property must be fixed for the whole of the payment period.

Section 33 Improvement-specific instalments – exceptions to fixed amount

The energy plan must not provide for the amount of improvement-specific instalments to increase during the payment period, except—

(a) where the plan applies to a non-domestic property and the increase is due to a change in the rate of interest charged under the plan; or

(b) where the rate of interest charged is fixed for the payment period and the increase does not exceed 2 per cent per year (including any component of the instalment that represents interest).

Section 34 No restriction on change of gas or electricity supplier

The energy plan must not restrict a bill payer from changing gas or electricity supplier.

Section 35 Guarantees to be given by green deal providers

(1) The green deal provider must agree in the energy plan to guarantee the functioning of the improvements and to repair damage to the property which is caused by the improvements (the “guarantee”).

(2) The guarantee must include the requirements set out in Schedule 3 (guarantees).

Section 36 Condition as to other matters – confirmation from bill payer and owners

(1) Before an energy plan is entered into, the improver must obtain the confirmation described in paragraph (3) (“confirmation”) from—

(a) each person (if any) who will be—

(i) the relevant first bill payer; or

(ii) subject to paragraph (4) , the relevant subsequent bill payer; and

(b) subject to paragraph (5) , each person (if any) who, at the time the confirmation is sought, is the owner of the property.

(2) The green deal provider must ensure that the confirmation or a copy of it is attached to the plan at the time it is entered into.

(3) The confirmation to be obtained from a person (“A”) under paragraph (1) must be in writing and contain—

(a) consent by A to—

(i) the amount of the payments in instalments to be made under the plan;

(ii) the intervals at which they are payable; and

(iii) the period for which they are payable; and

(b) an acknowledgment by A that if the plan is entered into and A becomes the bill payer—

(i) A must pay instalments under the plan for such time as A is the bill payer, and

(ii) the other terms of the plan which bind a bill payer will bind A .

(4) Paragraph (1)(a)(ii) does not apply to a relevant subsequent bill payer who, at the time a plan is to be entered into, will be the improver.

(5) Paragraph (1)(b) does not apply to a person who, at the time a plan is to be entered into, will be—

(a) the improver; or

(b) a person to whom paragraph (1)(a) applies.

Section 37 Owner under regulation 36

(1) For the purposes of regulation 36, a person is an owner if, subject to paragraph (3) , that person meets one or more of the descriptions in paragraph (2) .

(2) The descriptions referred to in paragraph (1) are that the person is—

(a) a relevant title holder;

(b) a landlord under a lease of the property; or

(c) a licensor under a licence of the property.

(3) A person who would otherwise be an owner by virtue of paragraph (2) is not an owner if that person is—

(a) a mortgagee not in possession of the property;

(b) a landlord under a relevant lease of the property; or

(c) a person who has only a beneficial interest in the property.

(4) In paragraph (3)(b) , a “relevant lease” means a lease—

(a) granted for a fixed term which exceeds 21 years;

(b) where, at the time the confirmation is sought, the unexpired term exceeds the payment period; and

(c) which does not contain a right to terminate the lease by the landlord or tenant.

(5) For the purposes of paragraph (4)(c) , a right to terminate a lease does not include a right of re-entry or forfeiture or, in Scotland, a right of irritancy.

Section 38 Permitted early repayment of credit

(1) This regulation provides for a green deal plan to include a term requiring the early repayment of the outstanding amount (“early repayment”) where the plan—

(a) will not be a regulated consumer credit agreement; and

(b) the parties who are to enter into the plan do not intend that it will be treated as if it were a regulated consumer credit agreement.

(2) A green deal plan which provides for early repayment when a trigger event occurs is not contrary to section 5(3)(b) if, when that event occurs, the conditions in paragraphs (3) and (4) are met.

(3) The first condition is that the person (“A”) who is required to make an early repayment when the trigger event occurs is—

(a) the person who sold or let the property to another person (“B”) where—

(i) B became the bill payer immediately after the sale or letting;

(ii) the trigger event occurred because B became the bill payer; and

(iii) A was not the bill payer immediately before the trigger event occurred,

and A is either the improver or has been a bill payer under the plan; or

(b) where paragraph (a) does not apply, the person who was the bill payer immediately before the trigger event.

(4) The second condition is that the green deal provider must be satisfied that—

(a) if it were to enter into a new agreement to provide the remaining credit to the person who is the bill payer immediately after the trigger event occurs; and

(b) if that agreement was on substantially the same terms as the terms of the plan,

the new agreement would be a regulated consumer credit agreement.

(5) In this regulation—

(a) “outstanding amount” means the sum of the green deal instalments which are payable in the period commencing when a trigger event occurs and ending at the end of the payment period; and

(b) “remaining credit” means the outstanding amount less interest and charges.

Section 39 Permitted cash advances

A term of a green deal plan which provides for money to be advanced by the green deal provider to the improver is not contrary to section 5(3)(c) if the total amount advanced is no more than the lower of—

(a) £150; or

(b) 5 per cent of the estimated total of the green deal instalments.

Section 40 Terms of the plan which are to bind or benefit the bill payer or a subsequent bill payer

(1) The terms of a green deal plan which bind a bill payer are—

(a) a term which provides for the amounts of the green deal instalments and the intervals at which, and period for which, they are payable;

(b) an early repayment term; and

(c) subject to paragraph (2), any other term which the plan expressly states is to bind the bill payer.

(2) A term in which the improver confirms to any person—

(a) that any necessary permissions or consents have been obtained in respect of the improvements; or

(b) any other matter relating to the improvements or the installation of the improvements,

does not bind the bill payer or subsequent bill payer.

(3) A term of a green deal plan which binds a person (“P”) as a bill payer (except an early repayment term)—

(a) binds P only in respect of anything which is to be done or not to be done during the period for which P is the bill payer; and

(b) may be enforced by the green deal provider against P but only to the extent that P is bound under sub-paragraph (a).

(4) An early repayment term—

(a) binds a person (“P”) as a bill payer from the time P becomes the bill payer until the end of the payment period; and

(b) may be enforced by the green deal provider against P but only to the extent that P is bound under sub-paragraph (a).

(5) A term of a green deal plan which confers a benefit on the improver (except a term under which money is to be advanced to the improver) also confers a benefit on a bill payer.

(6) Where a term of a green deal plan confers a benefit on a bill payer,—

(a) a person (“P”) who is the bill payer has the benefit of that term; and

(b) P may enforce that term against the green deal provider,

but only whilst P is the bill payer.

(7) In this regulation—

(a) “early repayment term” means a term in a plan which complies with regulation 38 ;

(b) a reference to a green deal provider includes—

(i) in relation to a term which binds a person as a bill payer, a reference to a person to whom the green deal provider’s right to enforce that term has been assigned;

(ii) in relation to a term which confers a benefit on a person as a bill payer, a reference to a person who, further to a novation of a green deal plan, has assumed the green deal provider’s obligation in respect of that term.

Section 41 Specified period under section 8(3)

(1) The period set out in paragraph (2) is the specified period for the purposes of section 8(3).

(2) The period—

(a) starts on whichever is the later of—

(i) the date on which installation of all improvements in accordance with section 7 is completed; or

(ii) the date two days after the date on which the notification required by section 8(2) is sent to the bill payer; and

(b) finishes 14 days after that date.

Section 42 Action to be taken under section 8(4)

(1) For the purposes of section 8(4), the green deal provider must take the action provided in section 8(4)(b).

(2) For the purposes of section 8(4)(b), the specified description of document is a disclosure document.

Section 43 Intended occupation under transactions or arrangements to be entered into

Regulation 44 applies in relation to a green deal property where—

(a) a person (“A”) intends that a transaction or arrangement is to be entered into under which another person (“B”) is to have a right to occupy the property;

(b) the intended transaction or arrangement does not—

(i) fall within section 12(1); or

(ii) include a transfer of ownership from A to B;

(c) A intends that—

(i) the transaction or arrangement will be made in writing; and

(ii) A will be a party to the transaction or arrangement;

(d) A intends that B will—

(i) start to occupy the property under the transaction or arrangement within three years of the transaction or arrangement being entered into; and

(ii) be the bill payer at the property whilst in that occupation; and

(e) at the time the green deal plan for the property was entered into, B did not provide a confirmation under regulation 36.

Section 44 Disclosure and acknowledgment in circumstances described in regulation 43

(1) Where this regulation applies, A must—

(a) free of charge, provide B with—

(i) the disclosure document for the property; or

(ii) if the obligation in section 8(4) has not yet been complied with, a document containing the same information in connection with the green deal plan as the disclosure document would have contained; and

(b) secure that B acknowledges in writing that, as the bill payer, B will be—

(i) liable to pay green deal instalments; and

(ii) bound by the terms of the green deal plan which bind a bill payer .

(2) The requirement in paragraph (1)(a) must be satisfied—

(a) no later than seven days before the transaction or arrangement is to be entered into; or

(b) where compliance with sub-paragraph (a) is not practicable, as soon as practicable before the transaction or arrangement is to be entered into.

(3) The requirement in paragraph (1)(b) must be satisfied as soon as practicable before the transaction or arrangement is to be entered into.

Section 45 Intended transfers of ownership

Regulation 46 applies in relation to a green deal property where—

(a) a person (“C”) intends that a transaction or arrangement is to be entered into under which ownership of the property or a lease of the property is to be transferred to another person (“D”);

(b) the intended transaction or arrangement does not fall within section 12(1);

(c) C intends that—

(i) the transaction or arrangement will be made in writing; and

(ii) C will be a party to the transaction or arrangement; and

(d) at the time the green deal plan for the property was entered into, D did not provide a confirmation under regulation 36.

Section 46 Disclosure and acknowledgment in circumstances described in regulation 45

(1) Where this regulation applies, C must—

(a) free of charge, provide D with—

(i) the disclosure document for the property; or

(ii) if the obligation in section 8(4) has not yet been complied with, a document containing the same information in connection with the green deal plan as the disclosure document would have contained; and

(b) secure that the document which effects the transfer of ownership to D includes an acknowledgment by D that, as the bill payer at the property, D will be—

(i) liable to pay green deal instalments; and

(ii) bound by the terms of the green deal plan which bind a bill payer .

(2) The requirement in paragraph (1)(a) must be satisfied—

(a) no later than seven days before the transaction or arrangement is to be entered into; or

(b) where compliance with sub-paragraph (a) is not practicable, as soon as practicable before the transaction or arrangement is to be entered into.

Section 47 Oral tenancies and unwritten licence agreements

Regulation 48 applies in relation to a green deal property where—

(a) a person (“E”) intends that a tenancy or licence agreement is to be entered into under which another person (“F”) is to have a right to occupy the property;

(b) E does not intend that the tenancy or licence agreement will be made in writing;

(c) E intends that—

(i) F will start to occupy the property under the tenancy or licence agreement within six months of the tenancy or licence agreement being entered into;

(ii) F will be the bill payer at the property whilst in that occupation; and

(iii) E will be a party to the tenancy or licence agreement; and

(d) at the time the green deal plan for the property was entered into, F did not provide a confirmation under regulation 36.

Section 48 Acknowledgment in circumstances described in regulation 47

(1) Where this regulation applies, E must secure that F acknowledges in writing that, as the bill payer at the property, F will be—

(a) liable to pay green deal instalments; and

(b) bound by the terms of the green deal plan which bind a bill payer .

(2) The acknowledgment required by paragraph (1) must be given before F starts to occupy the property under the tenancy or licence agreement.

Section 49 Transactions or arrangements to change bill payers

Regulation 50 applies in relation to a green deal property where—

(a) a person (“G”) intends that there is to be a transaction or arrangement under which G agrees with another person (“H”) that H is to become the bill payer at the property;

(b) the intended transaction or arrangement does not fall within section 12(1) or regulation 43, 45 or 47;

(c) G intends that G will be a party to the transaction or arrangement; and

(d) at the time the green deal plan for the property was entered into, H did not provide a confirmation under regulation 36.

Section 50 Disclosure and acknowledgment in circumstances described in regulation 49

(1) Where this regulation applies, G must—

(a) free of charge, provide H with—

(i) the disclosure document for the property; or

(ii) if the obligation in section 8(4) has not yet been complied with, a document containing the same information in connection with the green deal plan as the disclosure document would have contained; and

(b) secure that H acknowledges in writing that, as the bill payer at the property, H will be—

(i) liable to pay green deal instalments; and

(ii) bound by the terms of the green deal plan which bind a bill payer .

(2) The requirement in paragraph (1)(a) must be satisfied—

(a) no later than seven days before the transaction or arrangement is to be entered into; or

(b) where compliance with sub-paragraph (a) is not practicable, as soon as practicable before the transaction or arrangement is to be entered into.

(3) The requirement in paragraph (1)(b) must be satisfied as soon as practicable before the transaction or arrangement is to be entered into.