case for early investment
Salix cautions against
able to respond in ten days. Those ap-
holding back on
plications which meet the criteria for the
scheme will receive a formal offer at the
investment in carbon
same time. This allows the successful
candidates to press on with their
saving as cost savings
projects.”
He noted that this tight turnround of
are achievable now
applications, combined with the first
deadline being set for 17 July, enabled
many of the successful schools and col-
leges to start work on their projects over
the summer break.
second, the direct energy savings from the past, we are aware of the tendency Significantly, money is not forthcom-
taking action right now can be even to hold off applying until the very last ing with the acceptance letter. It would
greater.” moment. follow that projects have to be financed
“That makes it more difficult for us to from the applicants’ own resources.
Roll-out of scheme in June
examine the bids, and puts additional When the project has been completed,
pressure on the successful applicants to and invoices are available for the costs
A Budget announcement takes time to implement their projects by the end of incurred, the formal loan agreement is
flesh out, particularly when a new the financial year.” signed, and the funds are released at that
scheme is involved. Putting the infra- A second closing date for SEELS was stage.
structure in place took until 10 June for set for 9 October 2009. Depending on the Critics of the Salix approach identify
SEELS to be launched by Joan Ruddock, amount of money that remains this as a major shortcoming, which po-
MP, the Climate Change Minister. unallocated at that point, Salix may an- tentially acts against the take-up of
An awareness campaign followed, nounce further deadlines up to the clos- funds. They argue that many public sec-
with prospective borrowers being circu- ing date for all applications under the tor bodies have limited cash at their dis-
lated about the scheme and the process scheme on 31 December 2009. posal and are cautious about tying it up
for applications. for a period of months – however worthy
A closing date of 17 July was set by the case. Since applicants have nine
Salix for the first round of applications.
Straightforward application
months to complete their project, it
Was this five week window too narrow, Alastair Keir was keen to stress the could mean that a council undertaking a
perhaps, given the application process straightforward nature of the application major upgrade to its boiler systems in
that might be expected for a loan com- itself. The application form is completed phases would be subsidising the scheme
mitment ranging from £5,000 to many online at the Salix Finance web site and for more time than its treasury team
millions? then downloaded, signed and submitted might consider acceptable.
The Salix CEO addressed that point. with an electronic copy of a Project Might SEELS fail to attract projects at
“Since one of our targets is the schools Compliance tool. the upper end of its financial trajectory
sector, it was important that they were “We aim to write to all applicants for that reason? The Salix CEO is not con-
prompted to make their applications be- within 14 days of receiving their request vinced that there is a problem here.
fore the end of the school year. From our to indicate whether we intend to provide “When a new proposal has been ac-
experience of time-limited schemes in a loan. In practice, we have often been cepted, and the project is scheduled
“It makes no sense at all for CRC participants to hold fire on investment in energy saving projects simply to
secure a better ranking in the league table. They can be cutting their energy cost from Day 1. While the
bonus payments for the most successful CRC players will amount to 10% of the carbon tonnage purchased
in the first full year, the direct energy savings from taking action right now can be even greater.”
18
18
The Informed Executive
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