Doubts emerge over Britain's 'green deal'

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LONDON, April 9 (UPI) -- A British deal to urge consumers to insulate buildings for the sake of energy efficiency might not be as widespread as London claims, an official said.

London's so-called Green Deal allows consumers to take out loans to cover the cost of improving insulation. The Daily Telegraph in London said consumers would use the money saved in heating bills to pay off the loans.

Nearly two dozen companies considered marginal players in the British energy sector signed up for the program, though major utilities like German energy company E.ON were included in the initial tranche of providers.

Sara Vaughan, director of energy policy at E.ON, told the newspaper it might be difficult to attract widespread support for the project.

"I'm not saying it will be easy but I don't think the government has a choice," she said. "The timing may be ambitious but whether we do it by 2014 or 2018, the important thing is that we do it."

The plan is set to enter into force in October. An estimated 14 million homes in the country are said to not have adequate insulation. Most of the companies in the first tranche were small and medium-sized companies.