Explanatory note

This Order relates to the green deal energy efficiency scheme established by Chapter 1 of Part 1 of the Energy Act 2011 (the “2011 Act”).

This Order applies in Great Britain and is made under section 30 of the 2011 Act. It makes amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (the “Regulated Activities Order”) in consequence of the provisions of Chapter 1 of Part 1 of the 2011 Act.

This Order makes provision as to the treatment of green deal plans under the Regulated Activities Order. In particular, it makes provision as to the circumstances in which a green deal plan is a credit agreement for the purpose of the Regulated Activities Order and the persons who are to be treated as being the lender and borrower in relation to a green deal plan.

In the case of the borrower, the Order makes provision as to the articles of the Regulated Activities Order in respect of which different categories of person are to be treated as the borrower.

Article 12 makes provision as to the application of the provisions of the Consumer Credit Act 1974 (the “CCA”) to a green deal plan which is made in the period starting with 1 April 2014 and ending with the date on which this Order is made, and which is not a regulated credit agreement when made, but becomes regulated when this Order comes into force. It disapplies certain provisions of the CCA in respect of these green deal plans. It also clarifies the way in which, after this Order comes into force, certain provisions of the CCA will apply in respect of these green deal plans.

A full regulatory impact assessment has not been produced for this instrument as no impact on the private or voluntary sectors is foreseen.