Sustainable Communities The housing challenge Presentation Paul Jones – Capital Energy Solutions 1 November 2012

Outline of Today’s Presentation First - I will provide some history and perspectives on energy conservation in relation the housing sector. Secondly – I will review where we have got to and where progress has been made. Thirdly – I will talk about the future and measures that can be taken right now to improve energy efficiency and potential sources of funding to support those measures

John Cartwright MP, House of Commons, May 1980 Some History “The motion refers to the impact of ever-rising fuel prices. No hon. Member can argue about the significance of those price rises. Department of Energy figures show that between 1973 and 1979 solid fuel prices rose by 131 per cent., gas prices by 85 per cent., and electricity prices by a staggering 183 per cent. As we know, the prospects for the immediate future are a great deal worse. The Government are requiring that domestic gas prices shall rise by 10 per cent. above the rate of inflation, not only this year but for the succeeding two years. There was a 17 per cent. rise in April, and there will now be a further 10 per cent. rise in October.” John Cartwright MP, House of Commons, May 1980

Some History: fuel poverty concerns “Low-income households tend to have above-average fuel consumption. Single-parent families, families with children under 5, the retired, the sick and the unemployed all spend long periods of the day at home, when they need heating. Also, they tend to live in worse housing conditions—property with no insulation—and often they are locked into the most expensive systems of heating. The Supplementary Benefits Commission showed that in 1977 37 per cent. of all households receiving supplementary benefit had all-electric systems of heating” John Cartwright MP, House of Commons May 1980

History Repeating itself: “between 2011 and 2016 domestic electricity prices will increase in real terms by 18% and domestic gas prices will increase in real terms by 28%. This comes on top of a real increase of 23% for electricity prices and 28% for gas prices between 2009 and 2011. The price of other fuels (ie coal, heating oil and LPG) is assumed to track fossil fuel prices. The projections are based on DECC assumptions” Report on Fuel Poverty: Professor John Hills, London School of Economics: March 2012.

Thousand tonnes of oil equivalent Chart 2: Domestic final energy consumption by end use, UK, 1970 to 2011 60,000 50,000 Space Heating Water Cooking Lighting and appliances Total 40,000 Thousand tonnes of oil equivalent 30,000 20,000 10,000 1970 1975 1980 1985 1990 1995 2000 2005 2011

Thousand tonnes of oil equivalent Chart 4: Electricity consumption by household domestic appliance, by broad type, UK, 1970 to 2011 2,000 1,800 Light Cooking Wet Home computing Cold Consumer electronics 1,600 1,400 1,200 Thousand tonnes of oil equivalent 1,000 800 600 400 200 0% 1970 1975 1980 1985 1990 1995 2000 2005 2011

Chart 6: Average energy consumption of new cold appliances, UK, 1990 to 2011 120 100 Chest Freezer Fridge-freezer Refrigerator Upright Freezer 80 Index: 1990 = 100 60 40 20 1990 1995 2000 2005 2011

Combined effect of more efficient appliances and homes insulation Chart 8: Savings due to better Insulation and heating efficiency, UK, 1970 to 2007 Combined effect of more efficient appliances and homes insulation 100,000 90,000 Heating systems efficiency energy saving Insulation energy saving Actual energy consumption 80,000 70,000 60,000 Thousand of tonnes of oil equivalent 50,000 40,000 30,000 20,000 10,000 1970 1975 1980 1985 1990 1995 2000 2007

Decent Home Standard (DHS) To comply with the DHS four criteria must be met: 1) free of Category One hazards under the Housing Healthy and Safety Rating System (HHSRS) 2) in a reasonable state of repair. To fail under this category, one major component or two minor components would be both old and in a poor state of repair 3) reasonably modern: no more than three of: kitchens older than 15 years, bathrooms older than 20 years, poor internal layout, external noise transmission, flats with poor communal layouts 4) reasonable thermal comfort, defined as individual heating controls, at least 50mm roof insulation or cavity wall insulation where applicable

Measures Being Taken by Social Housing Landlords Micro generation / renewable energy measures: Installing ground source and air source heat pumps, photo-voltaic, solar thermal. Water efficiency measures: Installing showers, dual flush WC cisterns and water efficient aerating taps. Fabric energy efficiency measures (insulation): Loft insulation and cavity wall insulation (CWI), including insulating cladding to high rise blocks and other hard to treat CWI; Double and triple glazing installations and insulated front entrance doors. Behavioural interventions: Providing comprehensive energy advice and working closely with residents to influence behaviour and help them achieve savings in fuel bills; facilitating fuel switching. Other: Fitting A rated condensing boilers, upgrading or replacing communal boilers, and insulating communal boiler rooms; retrofitting green roofs; low energy light bulbs, provision of sensors to control communal lighting, remote metering and power-down plugs.

Feedback on CERT & CESP Amongst social landlords the most commonly occurring issue was finding match funding; some noted that such a requirement was not originally part of the scheme and were unable to access CESP because they could not identify any match funding. Social housing landlords found CESP complicated and difficult. Some found it inflexible, confusing and lacking in transparency. For some social housing landlords CESP conflicted with their internal procurement and probity requirements. Some landlords found the geographical criteria impeded them from benefiting from CESP; geographical boundaries of Lower Super Output Areas (LSOAs) do not align with estates, leading to eligibility for CESP which aligns with LSOAs but does not make sense in the context of neighbourhoods. Findings of HCA published research January 2012

Fuel Poverty on the Increase “Tackling fuel poverty offers a multiple pay-off: better living standards and conditions for people with low incomes, an improved and more energy efficient housing stock, fewer winter deaths and reduced costs for the NHS. This is no doubt what Parliament had in mind when it agreed in 2000, with all-party support, that fuel poverty should be eradicated as far as reasonably practicable within 15 years. That things are moving in the opposite direction – on the projections we present here – is profoundly disappointing.” Source: Prof John Hills Fuel Poverty review March 2012

Excess winter deaths

Fuel Poverty Impacts “These costs are largely outside the control of those households – given the capital investment that would be required to reduce them – except through trading off the temperatures at which they live against other necessities, exacerbating the difficulties faced by all on such low incomes.” “ From a health and well-being perspective: living at low temperatures as a result of fuel poverty is likely to be a significant contributor not just to the excess winter deaths that occur each year (a total of 27,000 each year over the last decade in England and Wales), but to a much larger number of incidents of ill-health and demands on the National Health Service and a wider range of problems of social isolation and poor outcomes for young people.” Source: Prof John Hills Fuel Poverty Review Final Report March 2012

Why insulation is so important…

What is available now 100% free cavity and loft insulation on all housing and sheltered accommodation – up to four storeys high however we will happily survey 6-8 storeys free of charge for suitability Free insulation for your able to pay residents and leaseholders Free insulation to higher rise blocks if we could utilise some of your energy efficiency or decent homes budgets to supply access, or insulating blocks for Free, whilst window replacements are being carried out Free, ‘added value’ surveys and end of project carbon reports

FREE insulation – even for leasehold properties Comprehensive treatment for whole blocks –irrespective of tenure free cavity wall insulation for buildings up to four storeys high (as long as they are not of solid or timber framed construction) possibly up to six-eight storeys if access is straightforward

£10 for every property we insulate We will set up a green fund (while funding is available) for each new organisation that utilises our funding create a fund that allows us to help organisations mobilise their budgets on other projects supporting other energy efficiency projects which wouldn`t normally be possible

Few Simple Conditions The approximate percentages needed for each contract are 40/60% Priority group, 15/25% Super Priority Group and 20/30% able to pay customers. We have to collate information on the resident for OFGEM and the funders and your residents will simply have to provide their NI number, date of birth (if they are over 70) or benefit details. This information remains confidential between us and our funder only and is protected under the Data Protection Act. The social landlord must be willing to sign a declaration to say that they have given us permission to insulate their properties and the social landlord won’t try to “double fund” this project

Added Value We do our own surveys; no costs falling on landlords We provide detailed, accurate and well-presented energy report on your properties, right down to the number of bedrooms, type of heating and insulation installed Independent assessment of carbon savings: demonstrates your commitment

Additional benefits to you, residents and the local area As insulation can also greatly reduce the amount of external sound that penetrates a property, you will benefit those residents living close to noisy roads, noisy neighbours or under flight paths One of the ‘secret benefits’ of insulation is that it also keeps properties cooler in summer. This can be important in apartments that get hot – and pose a health risk to the elderly and those with health conditions And, of course, it reduces condensation and mould forming in the ‘cold spots’ that occur on outside walls

Our Social Commitment We commit to train and employ a number of local staff for every major contract – working alongside our highly experienced operators and giving them skills they can then utilise to gain long-term employment On large contracts we complete them totally in house, without the need to sub any of the work We do all the paperwork so you don’t have to. We apply for grants, prepare before and after reports, contact and consult with residents and carry out a thorough clear up at the end

About Us Capital Energy specialises in undertaking large and complex Council and Housing Association contracts All of our surveyors, cavity & loft teams are fully trained and certificated within their field and also comply with all HSE requirements for their particular job. They also carry Photo ID, are CRB checked

About Us Continued… Our entire fleet has been upgraded to more fuel-efficient and lower emission vehicles; each one fitted with a tracker and fuel efficiency aid, which significantly reduces carbon emissions and also generates a weekly efficiency report We provide weekly, fortnightly or monthly updates keeping you and your residents well informed every step of the way. We send them letters explaining what we are doing, the benefits to them and when their appointments will be, with the opportunity to opt out or reschedule

Some of our clients

And Remember (1) This will be a completely Free Project This will benefit both your residents and you housing stock This will help reduce cold related deaths or illnesses This will help pull your residents out of fuel poverty This could create thousands of pounds for a green fund for your organisation

And Remember (2) This will help with condensation within your housing stock which is becoming a huge problem This could help with local employment within your area This will help your organisation hit its carbon reduction targets By benefiting the poorest tenants, meaning rent arrears will reduce

Fuel Poverty set to increase “Far from being eliminated in 2016 it will still affect between 2.6 million and 3.0 million households (containing between 7.8 and 8.9 million individuals) when measured using our preferred indicator. Our central projection is that the key indicator of its scale, the fuel poverty gap, will have risen to £1.7 billion, compared to £1.1 billion in 2009.” Source: Hills Review on Fuel Poverty; March 2012

Thank you for attending Please don’t hesitate to contact us Telephone: 01932 570 030 Email: info@capitalenergysolutions.co.uk Website: www.capitalenergysolutions.co.uk   Capital Energy Insulation | Capital Energy Electrical | Capital Energy Solar Systems Shepperton Trading Estate, Littleton Lane, Shepperton, Middlesex, TW17 0NF