Can the Energy Company Obligation Work? CIH September 2013

Transcription

1 Can the Energy Company Obligation Work? CIH September 2013

2 Agenda Introduction to Wates Living Space and our energy contribution. ECO what progress has been made and what work are we seeing coming through? Current risks and opportunities. In conclusion, can the ECO work?

3 Wates Living Space Part of the 115 year old, family owned Wates Group, operating across the UK with bases in Glasgow, Edinburgh, Manchester, Leeds, Birmingham, Wales, London, Leatherhead During CESP we delivered over 19,000 energy efficiency measures to around 9000 homes, securing approximately 1 million tonnes of lifetime carbon savings. This activity delivered over 40m of energy efficiency work to our customers, helping them meet their targets and obligations, as well as significantly reducing tenants and occupiers fuel bills.

4 Source:- OFGEM ECO Compliance Update August 2013.

5 Table 4: Provisional number of ECO measures installed, by obligation, by month Installation Month 3,4 Carbon Saving Target (CSO) Obligation Carbon Savings Community 2 (CSCO) Affordable Warmth (HHCRO) Total number of ECO measures installed January ,972 7,973 2,705 14,650 February ,227 7,189 6,086 18,502 March ,495 7,151 7,403 21,049 April ,074 7,830 9,863 27,767 May ,118 9,526 12,132 33,776 June ,172 9,861 15,901 33,934 Total to date 46,059 49,530 54, ,681 1 Includes some measures installed between October and December May figure includes one measure installed under the 'rural' sub-obligation of CSCO and June figure includes eight measures installed under the 'rural' sub-obligation of CSCO 3 The installation date of one CSO measure and two HHCRO measures are unknown 4 ECO measures installed in earlier installation months can be notified at a later date under some circumstances. Some notified measures can be reallocated to different ECO sub-obligations and so are subject to change. Source:- DECC Statistical Release August 2013.

6 Notified measures In addition to the 34,032 approved measures presented in Figure 1, a further 81,691 measures were notified to Ofgem by the end of June. Of the c.82,000 measures which were notified to Ofgem but not yet approved, c.30,000 have been sent back to suppliers for data correction or completion of missing information. A further c.27,000 are currently undergoing further checks to ensure that they are valid measures under ECO. The remaining c.25,000 measures are currently being processed and are expected to be approved shortly if the necessary information is in order. Time lapsed of available time to deliver ECO 1 target = approximately 30% Source:- OFGEM ECO Compliance Update August 2013.

7 Some Risks and Opportunities? Cost of compliance and administration? Cost of carbon certainty and placement of this risk? Supply chain capacity particularly SWI? Supply chain appetite to invest in more sophisticated and expensive measures? Is the focus on higher cost, more complex to deliver measures driving lower uptake behaviour? Does the ability to miss phase targets drive the right behaviour in funders? Imaginative and more flexible measures mixing within obligations. Review current approved savings methodology to stop the under-estimation of savings. Review focus on buildings and consider including excluded measures. LED lighting as an example. Volumes of SWI work may allow for supply chain integration and innovation. Easier administration and approvals processes would pave the way for further supply chain involvement.

8 Conclusions can the ECO work? Yes it can and it must be made to work given the declining resources available elsewhere to tackle carbon savings and eradicate fuel poverty. It helps people! To make it work more effectively and more widely, some key actions are required:- Restoration of carbon targets to the levels of later years in CERT/CESP. Allow imaginative and flexible measures mixing within obligations. Reduce the cost of involvement. Be less prescriptive on placing risk of carbon certainty into supply chain. Allow a flexible lower cost work-mix to get more flex from supply chain. More collaborative working let supply chain help you.