Colin Anderson 'news' presentation to Taunton conference.

1. Autumn/Winter Meeting
1st December 2011 | Taunton

2. Agenda
1 10.30 News
2 11.00 Green Deal & Affordable Warmth Project
A community/localism approach to delivering energy efficiency &
3 11.10
Green Deal - Dr. Jon Kirby (E.ON)
4 11.35 The new HECA Obligation: what should it be? Discussion
12 noon LUNCH
The View From... Dorset - Peter Bywater will describe a project
5 12.45
to identify & assist fuel poor households through door-knocking
A new CWI product that can be used in cavities of <50mm -
6 1.10
Jamie Robbins (J & J Crump Ltd.)
7 1.30 Partner updates: EST, NEA, Carillion, etc.
8 1.45 Open session: thoughts & views from around the region

3. Green Deal Consultation

4. Green Deal Consultation
• 238 pages; 63 questions - responses by 18th January
• Affordable Warmth Target
• “Solid Wall Insulation is the key technology which we see
ECO supporting”
• LAs likely “...to be crucial in ensuring effective and
intensive delivery...”
• householders ‘encouraged’ to take up packages

5. Energy Company Obligation
• Carbon Saving Target: 0.52 million tonnes CO2 per year
• Affordable Warmth Target: £3.4 billion reduction in notional
lifetime cost of heating
• AWT expected to benefit 325,000 households by March 2015
• cost to energy companies estimated at £1.3bn per year
• funding split 25% Affordable Warmth; 75% Carbon

6. Green Deal/ECO & the Fuel Poor
• at least 4.1m fuel poor households in England - and rising
• intention to eradicate fuel poverty by 2016 re-stated
• to March 2015 ECO expected to assist 325,000 homes, leaving
3.8m in fuel poverty

7. Sample Questions
• Q11: views on hard-to-treat cavities
• Q12: should ECO Carbon Saving be used primarily for SWI
• Q13: should other measures be applied only with SWI
• Q15: should boiler repairs be scored under Affordable Warmth
obligation; if so, how
• Q31: should Affordable Warmth measures be SPG only
• Question not asked: should all or most of ECO be aimed at fuel
poor households

8. Feed-In Tariffs
• Consultation?! You probably know
the key changes...
• Tariff reduced from 43.3p to 21p per
kWh
• 4% tax-free rate of return
• simple payback now 18-20 years
• ‘eligibility date’ 12th December 2011

9. Winter Outlook Report
• Met Office “small weighting
towards colder than normal
temperatures”
• prices strongly favour coal
rather than gas for power
generation
• low risk of gas supply shortages
• electricity generation capacity
sufficient

10. Cold Weather Plan

11. Cold Weather Plan
• reduce impact of severe cold weather on health
• 27,000 excess winter deaths December to March
• most deaths amongst elderly; strokes, respiratory problems, cardiac
disease
• cost to NHS: £850million/year “winter related disease due to cold
private housing”
• £10m extra for Warm Front
• £20m for Warm Homes Healthy People Fund

12. Warm Homes Healthy People Fund
• £20million fund, but this may be increased
• applications by LA’s only
• projects completed/money spent by March 2012
• aim: to reduce death & morbidity due to cold housing
• contact your NHS public health teams
• 8th December deadline for bids; 16th December notification

13. Warm Homes Healthy People bids
• does your project supplement other sources of funding?
• is your approach innovative?
• how does your proposal reduce impacts on health?
• is what we propose targeted at the most vulnerable?
• which community & voluntary groups should we work with?
• how does our proposal link with the Cold Weather Plan?
• can what we propose be delivered before end of March 2012?

14. Hills Fuel Poverty Review
• fuel poverty is a distinct and serious issue
• existing definition is simple but flawed
• core problem of fuel poverty is diluted by fuel prices
• every measurement method has flaws
• low income high cost indicator preferred; fuel poverty exists
where:
(i) household has above reasonable costs of warmth AND
(ii) where meeting those costs would push it below an income
threshold

15. Heating Costs
Fuel Heating system 2-bed 3-bed 4-bed
Housecoal Grade A Open fire, back boiler £893 £1,177 £1,663
Electric radiators, immersion
£1,511 £2,013 £2,917
heater
EDF domestic tariff
ASHP underfloor £634 £836 £1,197
Storage heaters; immersion
EDF Econ7 tariff £820 £1,083 £1,560
heater
Gas boiler, rads, HW cylinder £907 £1,160 £1,601
BGas DD tariff
Gas condensing boiler, rads,
£764 £969 £1,330
HW cylinder
LPG-fired boiler, rads, HW
LPG £1,618 £2,119 £2,993
cylinder
Oil Oil fired boiler £1,099 £1,449 £2,061
Source: Sutherland Tables, October 2011. Data for Wales and South West England.

16. Room Heating Costs
Fuel Heating System Cost of 2800kW
Housecoal - Grade A Open fire £250
Anthracite nuts Closed roomheater £201
Standard domestic tariff Electric fire £424
Economy 7 Night storage heater (90%); electric fire (10%) £261
Radiant/convector fire £442
British Gas
Decorative effect open fire £914
Radiant/convector fire £573
LPG Decorative effect open fire £1,193
Butane heater £459
Source: Sutherland Tables, October 2011. Data for Wales and South West England.

17. Source: Sutherland Tables, October 2011.

18. Source: Sutherland Tables, October 2011.

19. Energy Prices: Plymouth Sep 2011
Credit Direct Debit Prepayment
Gas Electricity Gas Electricity Gas Electricity
Largest £816 £478 £788 £440 £730 £476
Average £681 £449 £642 £413 £677 £455
Smallest £639 £418 £607 £379 £659 £432
Source: http://www.decc.gov.uk/assets/decc/11/stats/publications/qep/2867-qep-sep11.pdf

20. http://www.ukace.org/publications/ACE%20Research%20(2011-11)%20-%20Scaling%20the%20solid%20wall%20full%20report

21. Scaling the Solid Wall
• SWIGA should be implemented at earliest opportunity
• urgent need for investment in product development
• ECO scores must be flexible enough to take into account multiple
wall products
• “very high” ECO subsidy levels required for low-income private
sector
• substantial incentives needed to encourage uptake
• “HECA officers will play an essential role...”
• area-based ‘zoning’ to maximise uptake

22. Ofgem publications

23. Green Deal & Affordable Warmth
• DECC-funded project, delivered by NEA
• 10 projects: 2 in south west (Plymouth & Bournemouth)
• aim to develop Green Deal Delivery Plans by March 2012
• find & evaluate how fuel-poor households can benefit from Green
Deal/ECO and related policies
• 15-20 days of NEA technical, policy & delivery expertise