West Midlands Fuel Poverty Forum WELCOME am ALEO Update Rachel Jones Act on Energy

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1 West Midlands Fuel Poverty Forum WELCOME 9.15 am Refreshments and Registration 9.30 am Welcome NEA Fuel Poverty Policy Update Andy Littlewood NEA am Overview of ECO flex & experience of working Davina Allen with urban & rural authorities Marches Energy Agency am Comfort Break am Identifying opportunities for Heat Pumps Neil Hope In social housing NIBE Energy Systems Ltd am ALEO Update Rachel Jones Act on Energy 11.55am Fuel Poor Network Extension (FPNES) Jane Fawcett - changes to qualifying criteria National Grid Affordable Warmth Solutions pm Open floor please share information about NEA Lead funding opportunities, shared resources, new Initiatives pm Close and Lunch

2 NEA WEST MIDLANDS FUEL POVERTY FORUM NEA UPDATE & POLICY BRIEFING Andy Littlewood Project Development Coordinator National Energy Action

3 Agenda Update on Warm Homes Campaign Key policy activities since last Forum Other live policy developments Enhancing the focus of our policy and advocacy NEA s policy priorities for

4 Warm Homes Campaign Winter 17/18 17 November February 2018

5 Key policy-led activities since last meeting

6 Published: New report into the CO risks in vulnerable households

7 Highlighting: Shortfall in support for gas boilers No gas boilers have been repaired [under the Energy Company Obligation (ECO)] scheme since April

8 Engaging with National Audit Office (NAO) on their investigation into smart meters Pic: ScottishPower

9 Progress in Clean Growth Strategy and National Infrastructure Commission (NIC) Homes will get around 7% to upgrade home energy efficiency measures, smart meters, a roll out of low carbon heating and new requirements for control systems.

10 Recent developments in the Private Rented Sector The consultation closes on 13 th March 2018 Respond online: Or

11 New price protections for vulnerable customers

12 Other important live policy developments

13 BEIS to set out future direction of ECO and WHDS Extension to 2028 (with a review in 2022) Consultation on the future phase of the scheme will be launched February or early March I am committed to meeting previous assurances to target this support on those that need the most help

14 Other upcoming consultations deadlines and live inquiries Dieter Helm Cost of Energy Review DCLG consultation on review of the Smoke and Carbon Monoxide Alarm (England) Regulations 2015, Ofgem consultation on protecting consumers who receive back bills, BEIS call for evidence on the reform of the Green Deal framework CLG select committee's inquiry into conditions in the PRS HMT committee's inquiry into household finances.

15 Further NEA health research - Under One Roof

16 UK Fuel Poverty Monitor

17 Building up to fuel poverty debate in Parliament Pic: Reuters

18 Early work to influence RIIO 2

19 Spring Statement 2018 An opportunity to assist fuel poor households. Pic: End Fuel Poverty Coalition

20 Enhancing the focus of our policy and advocacy NEA is reviewing the main areas of focus for the upcoming year. Still TBC but activity will largely be grouped around four main themes: Helping the worst first & better targeting Ensuring consistent outcomes for the most vulnerable Enhancing preventative health action Clean growth, innovation and well-being Please continue helping us gather compelling evidence, build awareness & enhancing recognition

21 NEA s policy priorities for Main policy areas we will be looking to influence as a priority: Addressing impacts on children trapped in appalling housing conditions Securing further buy-in for preventative action from health institutions Making the case for new Rural Challenge Fund Building on the Clean Growth Strategy and NIC assessment There will also changes to the way we communicate complex policy areas to stakeholders

22 Energy Efficient Communities Frontline support staff: ½ Day or full day training An Introduction to Energy Efficiency, Behaviour Change and Advice Householders Fun and interactive advice sessions/coffee mornings/group talks/surgeries advice and support Speak to Andy Littlewood for further information Or call

23 Warm Homes Campaign award Winners HEAT HEROES

24 Thank You Andy Littlewood Follow us on

25 Overview of ECO flex & experience of working with urban & rural authorities Davina Allen, Project Manager Marches Energy Agency

26 What is ECO flex? An opportunit(y) for local authorities to engage with energy suppliers on how suppliers meet their obligations to install energy efficiency measures in homes under the Energy Company Obligation. It is intended to introduce a new flexible approach through which LAs can refer households to suppliers for support, in particular households in fuel poverty or with occupants on low incomes and vulnerable to the effects of cold homes. The aim is to allow this new approach to work in a straightforward way, with a main focus on two documents from LAs: a Statement of Intent from an LA (or group of LAs) that they are going to identify households as eligible, and the criteria they are going to use; and a declaration that the LA has been consulted on the installation of measures in a home. p.2 Energy Company Obligation Flexible Eligibility Guidance, April chment_data/file/608042/eco_help_to_heat_flexible_eligibilit y_guidance_for_las.pdf

27 What is ECO flex? It is still ECO Widening the criteria beyond those who qualify under HHCRO (benefits) Giving local authorities flexibility in terms of how they identify households that are: Fuel poor Low income and vulnerable to the effects of living in a cold home

28 MEA working with local authority partners

29 A Local Fuel Poverty Service The Issue: c50,000 householders in Shropshire, Herefordshire, Staffordshire Referral partners Individual householders ; family, friends Local Authority Housing Association Other 3 rd sector Energy Saving Trust Installers Community groups Public Health? CCG? Strategic landscape Government policy Grant funding streams Local Authority relationship Trusted installers Advice Line MEA bid writing Independent Advice & Support Signpost/ Referral Triage Benefits check Experienced staff/ volunteers Emergency support oil-filled radiators Energy Performance Certificate Oil bulk buying Immediate action Home visit Casework No further action Flexible Eligibility Tariff switch Face to face Fundraising Desperate, but wrong boiler Via Local Authority Warm Homes Discount Tariff Switch Advocacy fuel debt It s all under control - reassurance Priority Services Register Check insulation & Co-ordination Referral heating Understanding the issue Evidence of benefit / reduced health impacts Referral to installer(s) A Cavity & loft insulation B Park Homes; oil/ LPG C Storage Heaters D Geographical Strengths E Mains gas Measures installed, reduce FP

30 Should they eligible? Farming family in rural location 2 adults, including a pregnant lady and pensioner, one 3 year old, 2 further adults in temporary residence Owner occupiers Very old Rayburn which struggles to heat self installed radiators Income c 24,000 after housing costs falling to c 19,000 once lady goes on maternity leave. No savings Wife died last year of pneumonia Couple in rural location Owner occupiers 79 year old woman with progressive lung cancer in urban area Private tenant Coal fire and plug in heaters, solid walls Income 13,000 after housing costs, no savings Income 21,000 after housing costs, no savings Receive contributions based ESA and PIP Oil boiler completely broken Gentleman took early retirement due to early onset dementia

31 Setting the criteria and publishing it Working within the guidance to target those who need it Guidance has been interpreted in different ways Consider a project based approach e.g. hard to treat cavity walls or specific areas in addition to main criteria, especially for urban areas Project could be linked to a good funding route, installer and have a specific promotional plan e.g. Hobs Road flats in Lichfield

32 Example Criteria Statement of Intent Through the Council s Flexible Eligibility route, residents qualify if they are: * Consider an exemptions clause O R

33 Administering the scheme

34 Working with installers Identifying current and new installers who have the ability to: - deliver ECO funding - provide consistently good customer service - are able to work closely with our team - good communication is essential - provide monitoring information - ability to promote useful to deliver at scale Monitoring and adaptation are key ECO3 procuring a framework of installers

35 Promoting the scheme key messages Key Messages Help to Heat clearer than flex? No need to be in receipt of benefits Even if you have been turned down before. Only available through the council scheme Do you know a friend, family member or neighbour who is struggling to keep warm? Promotional Materials Simple eligibility checker Posters Info on a website with a simple web address Ensure partners have information

36 What has worked? Some results In Herefordshire 10 installs have been completed with a further 13 in the pipeline In Shropshire 5 installs have been completed with a further 23 in the pipeline. Estimated savings to the NHS and society as a whole of 120,000 based on 20 properties (using BRE cost calculator) Around the same number of HHCRO installs Some very challenging circumstances turned around Those not qualifying provided with other advice and assistance

37 What has worked? General Off gas ECO offer strong Park homes Project based approach in urban areas Top-up funding Adapting criteria Specific examples: Stafford landlords Herefordshire Age UK with GSR Heating in Hereford Shropshire Heatsavers and other top up funds Park Homes in South Staffs with Broadoak Properties Hobs Road Flats in Lichfield with Greenvision Energy

38 Challenges Gas boilers high shortfall Insulation on its own Late start delays to publication of SOI Still bound by the rules of ECO

39 What next? ECO 3 Learning from ECO2t Consultation on ECO3 imminent Speculation flex to increase by how much? How do we deliver at scale, reach those most in need and stay true to our values and ethos?

40 Back to the people Farming family in rural location 2 adults, including a pregnant lady and pensioner, one 3 year old, 2 further adults in temporary residence Owner occupiers Very old Rayburn which struggles to heat self installed radiators Income c 24,000 after housing costs falling to c 19,000 once lady goes on maternity leave. No savings Wife died in last year of pneumonia 79 year old woman with progressive lung cancer in urban on gas area Private tenant Coal fire and plug in heaters, solid walls Income 13,000 after housing costs, no savings Couple in rural location Owner occupiers Income 21,000 after housing costs, no savings Receive contributions based ESA and PIP Oil boiler completely broken Gentleman took early retirement due to early onset dementia

41 Questions and comments Davina Allen, Project Manager Marches Energy Agency

42 NIBE Energy Systems

43 Agenda Introduction to NIBE Energy Systems Heat Pump Principles Barriers Benefits Opportunities Examples

44 NIBE a little part of our history 1949 Nils Bernerup establishes Backer Elektro-Värme in Sösdala creates NIBE-Verken in Markaryd through the acquisition of Ebe-Verken 1989 NIBE Industries is formed when a number of employees take over Backer Elektro-VärmeAB and NIBE-Verken AB.

45 BUSINESS AREA NIBE CLIMATE SOLUTIONS BUSINESS AREA NIBE ELEMENT BUSINESS AREA NIBE STOVES

46 Business concept Our vision is to create world-class solutions in sustainable energy

47 NIBE Policy Paper Primary message to reduce carbon Focus on properties off the gas grid Call for better strategy when looking at government subsidies Look for ways to engage and empower installer base Provide energy security for those in fuel poverty.

48 Trade Associations & Working Group Activities

49 How Do Heat Pumps Work? Heat pumps come in a range of different types, but they all extract low grade heat from the environment and convert it into useful energy around the home. They do this using a sealed refrigerant circuit inside the heat pump

50 Heat is then delivered to the water at the condenser ready for distribution to the hot water tank and heating system. The refrigerant passes through an expansion valve where it drops its temperature and becomes a liquid once more, ready to continue the cycle. The refrigerant changes state from liquid to gas and passes into the compressor where it is pressurised. This increase of pressure also increases the temperature Low temperature energy is delivered from the source (ground, water or air) to the refrigerant, which has a very low boiling point (as low as - 50degC). This takes place at the evaporator

51 Air Source Heat Pumps

52 Ground Source Heat Pumps

53 Opportunities for Heat Pumps in Social Housing Retrofit Tower blocks Bungalows Sheltered Accomodation Direct Electric Solid Fuel Old gas fired communal heating Design, installation and handover key factors to ensure correct performance Any properties in clusters provide economies of scale for installation..

54 Barriers to Heat Pumps Cost Disruption Tenant Education and Engagement Ongoing maintenance?

55 Benefits of Heat Pumps - Environmental Reduced Carbon Emissions The Committee on Climate Change states that 2.5 million heat pumps should be installed by 2030 and that the housing stock is prepared for the widespread roll-out of heat pumps after Electricity grid on a clear pathway for decarbonisation. Air quality high on political agenda

56 Benefits of Heat Pumps - Resident Reduced Fuel Bills Warm Homes Improved Health Total EPC kwh 9,703 Direct electric storage heaters - 9,703kWh x 0.15p/kWh = 1,455.45p/a Oil fired space heating 9,703kWh x 0.061p/kWh = (kwh price converted from a cost of 0.52p/L for oil) SCOP 3.5-9,703kWh / 3.5 = 2,772kWh 2,772 x 0.15p/kWh =

57 Benefits of Heat Pumps RSL s Warm residents - reduced rent arrears Warm properties reduced property defects caused by cold and damp Low maintenance Renewable Heat Incentive (Domestic) Payments based on estimate of how much heat your home will require. This is found in the EPC For heat pump systems payments also affected by the Seasonal Coefficient of Performance Payments made quarterly for a total period of 7 years ASHP tariffs have recently increased by 25% - worth revisiting previous feasibility studies for ROI Renewable Heat Incentive (Non-Domestic) Payments typically based on metered heat generated by renewable heating equipment Payments made quarterly for a total period of 20 years for central plant systems Legislation imminent paving the way for shared ground loop systems to claim the NDRHI meaning that RSL s can use individual ground source heat pumps and property EPC for RHI calculation which removes risk from the investment case as the RHI payments will be guaranteed. Also removes non-financial barrier of obtaining quarterly meter readings from tenants

58 Benefits of Heat Pumps RSL s Renewable Heat Incentive Non Domestic RHI shared loop scenario Tier 1 amount of 7,884kWh x 9.09p = 716 per annum Tier 2 amount of 1,819kWh x 2.71p = 49 per annum Total Non-Domestic RHI payments per annum = 765 Total Non-Domestic RHI payments over 20 years = 15,300 Capex cost for this system was estimated at 11,

59 Opportunities for Heat Pumps in Social Housing New build As our homes become more efficient and air tight, low temperature systems become an even more appealing solution. The Government has committed to phasing out the installation of high carbon fossil fuel heating in new homes in the early 2020s. Housing developers are increasingly specifying LPG for new build homes instead of oil due to the lower carbon intensity of LPG. Given the availability of renewable, green technologies, should we be building homes reliant on expensive fossil fuels today? Depending on the project RHI funding may be available. For example a new-build extra-care facility would be eligible for non-domestic RHI.

60 GSHP Case Study - Swynnerton Village 21no F1245 ground source heat pumps complete with 180L integral hot water store One m borehole in each garden Tenanted properties Installed winter 2013/14 Developer - Speller Metcalfe Installer Retherm

61 GSHP Case Study Loreburn Housing Small scale district heating system Sheltered Accommodation, Dumfries 24kW ground source system connected to boreholes providing heating only to 5 new build sheltered bungalows. NIBE F kW ground source heat pump in a dedicated plant room, connected to a pump station serving space heating for each property. The system meets 100% of the 54,283kWh heating demand. Loreburn are extremely pleased with the ground source heating system installed at Hallam House. Loreburn have previously installed NIBE products in our homes but this was the first communal ground source system installed. The fact that we can claim RHI payments on this as well as provide our customers with a renewable and efficient heating system made this the right choice for our Hallam House development. Fiona Pennington, Development Officer at Loreburn Housing

62 Frameworks Re:allies Energy Efficiency North Procure Plus Central Housing Investment Consortium Efficiency North Energy Efficiency Retrofit Across Wales

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64 West Midlands Association of Local Energy Officers Rachel Jones West Midlands Chair

65 Key Areas of Focus Energy Company Obligation Private Rented Sector Minimum Energy Efficiency Standards HECA Fund availability for LA s for Energy Efficiency Works

66 Energy Company Obligation ECO 3 consultation due out spring (Easter) We suspect the consultation will include the following: Will run for 3 ½ years Clean Growth Strategy committed ECO to 2028 ECO 3 100% fuel poverty will not be measured using carbon, metric will be fuel poor savings Currently 4.5 million are eligible for ECO BEIS aim to extend this to approximately 6.5 million Benefits to still be the key route to eligibility but looking to extend the benefit types this will be part of the consultation as to what benefits and how they link to income thresholds Extension of LA flex from 10% to 25% LA Flex to be voluntary for suppliers Minimum first time central heating numbers, could include off gas No funding for oil boilers Raising the gas boiler cap to 30-35,000 Outside of cap potential to have inefficient boilers replaced if an insulation measure is installed 15% rural obligation Solid wall minimum reduced from 21,000 to 17,000 to take the loss of CERO into account ECO the same for social housing E, F, G The consultations will also include the potential introduction of smaller suppliers into the obligation

67 Current Works from ALEO Members Winter Warmth Campaigns across the region. Switch and Save Schemes LA Flex Multiple Authorities are providing broader criteria outside of ECO Affordable Warmth. Measures installed are: Oil Central Heating LPG Central Heating Gas Central Heating Night Storage Heating Insulation Measures Other Uses of LA Flex Emergency Central Heating Offer, Warm Homes Fund, Gas Extension Landlord Projects related to PRS

68 Solihull Switch and Save Solihull Council has managed five successful Collective Energy Switching Schemes called Solihull Switch n Save with the aim of helping residents find a better/cheaper deal on home gas and electricity bills. This scheme means residents won t need to negotiate the often confusing world of energy suppliers and tariffs. Residents needed to have a recent energy bill to hand and visit to register. This type of scheme is known as Collective Switching, which uses the collective bargaining power of groups of people to get better prices for electricity and gas from energy suppliers. The Council work with ichoosr, a company that specialises in working with utility companies and managing collective energy switching to negotiate a better tariff on behalf of the group of people who register for the scheme.

69 Emergency Central Heating Offer (ECHO) Running across Warwickshire, Worcestershire and Solihull Replacement/repaired gas boilers where the current system is broken Fully Funded Eligibility ECO Affordable Warmth or ECO LA Flex Scheme started December 2017 Installs to date 80 Delivered through Council s energy advice partner Act on Energy Funded though WHD initiative scheme

70 LA in West Midlands Using LA Flex Coventry Herefordshire Shropshire Lichfield Telford and Wrekin Bromsgrove District Council Redditch Borough Council Malvern Hills District Council Worcester City Council Wyre Forest District council Wychavon District Council Solihull Metropolitan Council Stratford on Avon District Council Warwick District Council Nuneaton and Bedworth Borough Council Rugby Borough Council North Warks District Council Tamworth Borough Council Newcastle under Lyme Stafford

71 Thank you Contact Details Rachel Jones Act on Energy

72 Open floor/news from elsewhere

73 New London Warmer Homes Fund There are several options available if you qualify for the scheme: boiler replacement or repair improved heating controls and heating systems insulation for walls, roofs and floors window upgrades draught-proofing

74 Renewables and 60 years of perspective Electric Insights, Imperial College February 2018 The amount of renewable power produced in 2017 could have powered Britain (population 53 million) for the whole of In Terawatt hours resulted in 93 million tonnes of CO2 In 2017 renewables managed to produce the same amount of electricity by emitting just 3 million tonnes.

75 Food for thought- who says what uswitch: Between April and September 2017 at least 10% of people who switched saved 491 or more. Ofgem: about 57% of customers with the 10 largest suppliers (around 13 million customers), are on a standard variable tariff, paying c. 300 more than the cheapest available tariff uswitch again: Octopus (96%), Bulb (92%) and Utility Warehouse (90%) were top 3 for customer approval (sample size 17,000); npower (65%) 15 th ; BG (68%) 14 th.