Contractors claim Powys is being priced out of a government insulation scheme due to the fees being charged by the council and its partners.

Contractors who spoke to the County Times have said that the government’s ECO4 Flex scheme – which provides insulation and energy-saving features to low-income households – is becoming impossible to deliver in Powys because of abnormally high administration fees.

Currently, Powys County Council through its partner in the scheme, community interest company Warm Wales, is charging a £500 administrative fee per job.

This is more than five times the amount charged by neighbouring councils and many of the most deprived areas of the UK such as Knowsley in Merseyside charge no administrative fee at all.

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A spokesperson for Warm Wales said that the money being raised by the fee was being reinvested.

They added: “This is a commercially confidential contract which has been mutually agreed between Warm Wales and Powys County Council.

“However, all PCC-generated fees are reinvested back into the community for the benefit of locals who are experiencing fuel poverty, through the provision of free smart batteries for their photovoltaic installations.”

However, contractors that spoke to the County Times said the idea “didn’t make any sense”.

Jobs such as loft insulation, which the scheme covers, only have a small profit margin without any fee yet due to the unusually high charge they were now coming out at a loss – meaning many are now avoiding taking on jobs in the county.   

Others claim that "residents on a low income, vulnerable and with health conditions will lose out" due to this.

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Councillor Matthew Dorrance, deputy leader and Cabinet member for a Fairer Powys, said the council was “committed to tackling fuel poverty” and defended their handling of the scheme.

“ECO4 Flex is considered a key driver in assisting the council in their aim of reducing fuel poverty, whilst simultaneously contributing towards reducing carbon emissions from domestic homes, owned or occupied,” said Councillor Dorrance.

“Unfortunately, ECO4 Flex does not attract funding for the installation of smart battery storage.

“The only way to sustain this initiative was an increase in fees associated with the delivery of ECO4 Flex. However, it was agreed all Powys fees should be reinvested into the scheme, ensuring delivery of fully funded smart battery storage to qualifying Powys residents for as long as possible.

“I want to reassure our residents that the Warm Wales Powys Energy Saving Scheme was specifically developed to address Powys residents most likely to be at risk of fuel poverty, due to living in the most inefficient homes.”