Energy Efficient Scotland programme: analysis of delivery mechanism
Report exploring how best to oversee the delivery of our programme to improve energy efficiency and promote low carbon heating in Scotland's homes and buildings.
Annex 1 – Option assessment against roles
Steering Group
A steering group could provide high level advice and review of frameworks, however there is limited to no resource available for specific ‘go-to’ advice or monitoring of standard roles, and there would also be no scope for it to provide a central EES focal point.
A national-scale marketing and education service role would be limited, with high level strategy and timetables being set. Similarly, capacity, support and expert advice could be provided to Local Authorities, however this would be at a high level and limited to an advisory role with little scope to set standards or provide capacity support in technical or legal roles.
There is potential for a steering group to review existing legislation and provide recommendations to reform, but there is minimal resource to provide monitoring or enforcement activity. Although there is also a lack of resource to develop a monitoring framework against EES targets, high level advice can be provided to Local Authorities on monitoring and data gathering.
There is resource to deliver progress reports on an interim basis, but there is no consistent infrastructure to gather and collate the information required. There is potential to maintain an overview of funding availability and allocations, but a steering group would not be able to facilitate funding or provide national level assistance to attract private investors.
Supply chain development support could be periodically provided, however there is limited ability to present training opportunities or use PCS. There is also little scope for ready access route to direct capacity and/or expertise in IT and data access infrastructure.
Steering Group & Scottish Government delivery
Regular advice could be provided from either steering groups or specific functions within Scottish Government in order to fulfil some parts of Role 1, and capacity support could be provided by individual components of Scottish Government delivery, however there is a lack of specialist technical resource to provide specific guidance on all aspects of EES.
Due to the multiple directorates and departments, it will be challenging to establish a clear brand and provide national-scale marketing. It is unclear whether central government would be able to provide consumers with effective protection due to a lack of specific technical expertise and it is therefore considered that Role 3 may not be best suited to a steering group and Scottish Government.
Scottish Government does not have a track record of recruiting enforcement specialists in order to enforce national-level regulation and support local-level enforcement, and it is likely that there is also a lack of readily accessible expertise in data infrastructure. There is, however, the ability for Scottish Government to provide a clear lead to supply chain players and catalyse change.
There is no obvious route to facilitation of different sources of funding and project finance, but it is expected that Scottish Government would be able to provide a funding overview role where they look to analyse the costs and barriers to deliver, and provide advice to funding schemes.
Scottish Government Local Collaborative Structure
A Scottish Government Local Collaborative Structure could provide advice at regular intervals from either steering groups or specific functions within Scottish Government. LHEES, standards, review, feedback and approval could be delegated to individual components of Scottish Government, but there is limited technical resource. It is unlikely that a local collaborative structure could enforce national level regulation and support local-level enforcement as regulatory functions do not sit well within government departments and central Government does not have a track record of recruiting enforcement specialists.
Although there is a lack of ability to facilitate the project finance and funding, there is the ability to provide a funding overview role, whereby the body or a department of the Scottish Government looked to analyse the cost and barriers to deliver. Role 3 may not be suited to a local collaborative structure as there is a lack of specific technical expertise and it is unclear whether government would be able to provide consumers with effective protection. Although there is a likely lack of capability and expertise in IT and data infrastructure, there is a maximised ability to share public available data.
For role 4, progress reports and the creation and delivery of Monitoring Framework is likely to sit within the Office of Chief Economist or DECC. Roles 6 and 9 may also be better suited to other options due to the multiple directorates. Establishing a clear brand will be difficult because of this, and the ability to provide a clear lead to supply chain players will also be more challenging with the capabilities split across multiple teams.
Steering Group & Development of new directorate
The creation of an EES Directorate could provide support to Local Authorities from either steering groups or specific functions within Scottish Government. Subject to resourcing, capacity supported could also be provided by individual components of Scottish Government delivery.
There is the potential to hire specific technical experts to set and monitor quality assurance, but it is unclear whether central government would be able to provide consumers with effective protection. A clear central brand could be established and could be well placed for specialist marketing support, with the capability to have the support in-house. In regards to Role 5, a central EES focal point, a new directorate should be able to provide this.
Regulatory functions do not sit particularly well within government departments and so the creation of an EES Directorate will unlikely be able to enforce national-level regulation and support local-level enforcement. There is the ability to provide a funding overview role and to provide advice to funding schemes across the programme, but there is a lack of ability to facilitate project finance and funding as it is difficult to see how multiple directorates could facilitate other sources of funding.
Progress reports and the creation of the Monitoring Framework is likely to sit within the Office of Chief Economist or DECC. Although there is a likely lack of capacity and expertise in IT and data access infrastructure, the ability to share public available data is maximised. Role 9 would be a good suit, as the creation of an EES Directorate could also provide a clear lead to supply chain players and/or catalyse change more easily with capabilities split within single teams.
Amendments of existing bodies within Scottish Government control
An advice role to Local Authorities would be well suited to external bodies involved in similar roles to Local Authorities. External organisations could potentially supply additional support to Local Authorities but this would likely be limited to expert advice roles as there are significant resource requirements for smaller organisations.
An existing body within Scottish Government control can provide high level advice and review of quality assurance frameworks, but is unlikely to have the resource to create this from scratch. There is scope to manage delivery of branding, marketing and communication on a national level with support from DSHJ, however there is a lack of central brand. Role 5 may not be best suited to bodies within Scottish Government control, as it is hard to align a number of different external bodies around an external central point.
There is more ready scope to build and develop data infrastructure but at significant scale to current roles. Existing bodies inside of Scottish Government control have the ability to provide a funding overview role, but this is limited by the size of the organisations taking on significant roles.
There is some scope to manage financial aspects, but there is limited scope for some of these organisations to provide national level assistance to attract private investors. Resource is lacking to provide any monitoring or enforcement activity, but there is the potential to review existing legislation and provide recommendations to reform.
There could be a lack of infrastructure support to allow IT and data gathering systems if the entire process is kept within Scottish Government departments, so a report progress role may not be best suited to existing bodies within Scottish Government control.
Amendments of existing bodies outside Scottish Government control
A central focal point role may not be best suited to existing bodies outside of Scottish Government’s control as it is harder to align a number of bodies around one central point, and it is outside of direct government control.
There is scope to provide a national scale marketing, communication and education service with support from DSHJ, with individual marketing projects being delivered through external existing organisations, but there is a lack of central brand. High level advice of quality assurance frameworks could be provided, however it may be difficult to have sufficient resource to create from scratch.
Monitoring roles could be amended into functions of SEPA but go-to supplier advice would require additional resource within ZWS providing support to suppliers. External organisations could provide support to Local Authorities but this would likely be limited to expert advice roles, and there could potentially be a lack of specific technical expertise in a small number of organisations.
There are potential risks of relying on organisations outside of Scottish Government control to collect and manage data from specific Local Authorities, and there is a significant breadth of organisations to leverage their own internal data architecture. Certain organisations have guidance and an information role is a good fit, but the scale of support required is likely to dwarf the current capability.
An overview of funding role could be suited to existing bodies outside of Scottish Government control, where costs and barriers to deliver are analysed. Resources could be injected but this is a less obvious fit.
There is an increased risk from delegating funding with no direct route of control to the Scottish Government, but there is good scope to manage financial aspects within one of these organisations, such as Ofgem.
There is a lack of resource in Role 2 in order to provide any enforcement or monitoring activity, but there is potential to review existing legislation and provide recommendations. There is some scope to build data infrastructure, however, those further away from Government have less access to Government public data.
Executive Agency
An Executive Agency has the ability to provide national-scale marketing by establishing a clear central brand, as well as being able to leverage private sector expertise. Specialist support could be well placed, but it is unlikely that there will be capability in-house. It is expected that Role 5 will be well suited to an executive agency as there is a strong central focal point and co-ordinator for all EES services.
There is potential for quality assurance to be provided through specific technical expertise, but there is still direct government control over regulatory and quality assurance guidelines. Advice could be provided to Local Authorities at regular intervals, but there is not enough specialist resource available in order to provide specific guidance on all aspects of EES.
An Executive Agency would likely be able to provide a funding overview role and provide advice to funding schemes, but there is a lack of ability to facilitate project finance and funding.
A single body can provide a clear lead to support supply chain development and expansion, and there is additional scope to undertake large IT infrastructure delivery projects, although there could be potential reliance on third party suppliers. Progress reports and the creation of a Monitoring Framework is likely to sit within the specific function of an Executive Agency, and there is the potential to recruit enforcement specialists which would suit the descriptions of Roles 4 and 2.
Non-Ministerial Office
A Non-Ministerial office would be expected to achieve the requirements of Role 5 as there is a strong central focal point and EES coordination service. Similarly, national-scale marketing could be provided as a clear central brand could be established, as well as the ability to leverage private sector expertise.
There is potential for quality assurance technical expertise, but there is a lack of direct government control over these guidelines. Regular support and expert advice could be provided to Local Authorities, and reviews, feedback and approval could be delegated to individual components but there is likely to be limited scope to assemble extensive technical resource.
As with an Executive Agency, a Non-Ministerial office could monitor progress against EES targets at a national level with a strong central point of contact, and provide a clear lead to supply chain players due to being a single body. Role 7 could also be well suited, but there is less ability to facilitate access to project funding and finance as the main lever would be through grant funding.
The scale of resource required to deliver national-level regulation and support local-level enforcement could be prohibited, but there is potential to recruit enforcement specialists in order to achieve Role 2. There could be scope to undertake infrastructure delivery projects, but this may require third party suppliers.
Executive NDPB
An Executive NDPB has the ability to provide capacity, support and expert advice to Local Authorities and the potential to acquire specialist technical resource to provide specific guidance on all aspects of the project. A strong central focal point is expected to be provided, as well as a national-scale marketing, communication and education service as there is the ability to establish a clear central brand. There is also the potential to recruit specialists to enforce regulation and support local level enforcement. Based on the above, the four crucial roles as mentioned earlier in this chapter would be well suited to an executive NDPB.
A single body could provide a clear lead to supply chain players so it is expected that the supply chain development and expansion would be supported, and there is also scope to provide more training and signalling to the supply chain. There is potential ability to facilitate project finance providing that the right specialists are recruited, as well as being able to maintain an overview of the funding availability and allocations.
Enforcement specialists could be recruited, but the scale of resource required could be prohibited, and this could lead to a further separated government control over the regulatory and enforcement function. Role 4 (monitoring and reporting progress) is likely to be suited to an Executive NDPB as there is a strong central point of contact and co-ordinator.
Public Corporation
A public corporation could be well placed to provide a national-scale marketing communication and education service with specialist support, with a clear brand and the potential to have capability in-house.
There is a strong central focal point and a coordination could be provided for all EES services. There is potential for specific quality assurance expertise but this could lead to a potential conflict of interest due to commercial activities. Role 1, advice and support, could be provided to Local Authorities by a public corporation at regular intervals, and there is potential to acquire specialist technical resource to provide specific guidance.
There is the ability for a public corporation to maintain an overview of funding availability and allocations, as well as facilitating access to project funding if the right specialists are recruited. Additional scope could be provided for large data infrastructure delivery projects to be undertaken, and there is also scope to provide more training to supply chain development and expansion.
Enforcement specialists could potentially be recruited to enforce national-level regulation and support local-level enforcement, but a conflict of interest could arise due to commercial activities. A public corporation has a strong central point of contact and co-ordinator, which will enable progress to be monitored and reported against EES targets at a national level, whilst providing support to local-level monitoring and reporting.
Table 18: The long list of options
No |
Option name |
Role 1: Provide capacity, support and expert advice to Local Authorities |
Role 2: Enforce national-level regulation and support local-level enforcement |
Role 3: Provide clear quality assurance guidelines and effective, consistent customer protection processes |
Role 4: Monitor and report progress against EES targets at a national level and support local-level monitoring and reporting |
Role 5: Provide a central EES focal point and coordination service |
Role 6: Provide a national-scale marketing, communication and education service |
Role 7: Maintain an overview of funding availability and allocations |
Role 8: Facilitate access to project funding and finance |
Role 9: Support supply chain development and expansion |
Role 10: Data Infrastructure |
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1 |
Steering Group |
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2 |
Steering Group & Scottish Government delivery |
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3 |
Scottish Government Local Collaborative Structure |
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Table 18: The long list of options (cont.)
No |
Option name |
Role 1: Provide capacity, support and expert advice to Local Authorities |
Role 2: Enforce national-level regulation and support local-level enforcement |
Role 3: Provide clear quality assurance guidelines and effective, consistent customer protection processes |
Role 4: Monitor and report progress against EES targets at a national level and support local-level monitoring and reporting |
Role 5: Provide a central EES focal point and coordination service |
Role 6: Provide a national-scale marketing, communication and education service |
Role 7: Maintain an overview of funding availability and allocations |
Role 8: Facilitate access to project funding and finance |
Role 9: Support supply chain development and expansion |
Role 10: Data Infrastructure |
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4 |
Creation of EES Directorate |
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5 |
Bodies outside of Scottish Government control |
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6 |
Bodies outside of Scottish Government control |
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Table 18: The long list of options (cont.)
No |
Option name |
Role 1: Provide capacity, support and expert advice to Local Authorities |
Role 2: Enforce national-level regulation and support local-level enforcement |
Role 3: Provide clear quality assurance guidelines and effective, consistent customer protection processes |
Role 4: Monitor and report progress against EES targets at a national level and support local-level monitoring and reporting |
Role 5: Provide a central EES focal point and coordination service |
Role 6: Provide a national-scale marketing, communication and education service |
Role 7: Maintain an overview of funding availability and allocations |
Role 8: Facilitate access to project funding and finance |
Role 9: Support supply chain development and expansion |
Role 10: Data Infrastructure |
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7 |
Executive Agency |
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8 |
Non-Ministerial Office |
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9 |
Executive NDPB |
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10 |
Public Corporation |
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Contact
Email: james.hemphill@gov.scot
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