Applications for a trial targeted rate scheme for installing
insulation and clean heating in 500 Dunedin homes are open
after the scheme recently received Dunedin City Council
The scheme, run in partnership with the Energy Efficiency and
Conservation Authority (EECA), is designed to improve the
quality of housing in Dunedin.
It allows 500 ratepayers to effectively borrow up to $5000
from the council, which will borrow up to $2.5 million to
fund the scheme. The ratepayer will repay the loan with
interest over a 10-year period through a targeted rate on
The scheme is cost neutral to the council, as "borrowers"
will be charged an 8% interest rate, up from 7% under the
original scheme, to cover the council's interest and other
The scheme was originally expected to start in July, but
general manager, city strategy and development Dr Sue Bidrose
said changes had to be made to the original scheme to
minimise some financial risks and other implications since
The intention was always to have a scheme that would not be a
cost burden on ratepayers, she said.
"The changes we have introduced mean that people who sign up
won't end up being charged twice for GST and we have also
been able to minimise costs associated with insurance and
health safety issues."
The council now had an "effective and workable" partnership
with the EECA to provide a scheme that made the subsidy
available to Dunedin ratepayers.
Under the scheme, which is based on a successful Wellington
model, the council will enter into contracts with the EECA,
the approved service providers and ratepayers who opt to take
up the scheme.
Service providers must comply fully with the EECA Heat Smart
programme requirements, use approved products and be subject
to audit requirements.
They must also maintain public liability insurance for six
years following the end of the scheme.
The council will only contract with approved providers,
although ratepayers can choose which of those providers they
The EECA still has subsidies available for insulation,
although subsidies for clean heating have run out.
A council spokesman said people could still apply to the
council for funding to install clean heating, but should be
aware it would no longer attract an EECA subsidy.
About 100 people who had already contacted the council about
the scheme would be contacted, and applications were also
being taken via the council's customer services department.
An application form would soon be available on the council's
website, he said.
Indicative cost to borrower of servicing the rate. -
Total cost over 10 years: