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
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.
Chart 2: Domestic final energy consumption by end use, UK,
Chart
Domestic
final
energy
consumption
by end use, UK, 1970 to 2011
Chart 2: Domestic
final2:energy
consumption
by end
UK, 1970 to 2011
1970
touse,
2011
60,000
60,000
60,000
50,000
50,000
Space heating
Total
WaterSpace heating
Lighting and appliances
Water
Cooking
Lighting and appliances
50,000
Cooking
Space Heating
40,000
40,000
30,000
30,000
20,000
20,000
Thousand tonnes of oil equivalent
Water
T housand tonnes of oil equivalent
Thousand tonnes of oil equivalent
Total
40,000
Cooking
Lighting and appliances
30,000
Total
20,000
10,000
10,000
10,000
0
0
1970
1970
1975
1975
1980
1980
0
1970
1985
1985
1975
1990
1990
1980
1995
1995
1985
2000
2000
2005
2005
1990
2011
2011
1995
2000
2005
2011
Source: DECC, ECUK Table 3.6
Chart 3: Space heating consumption per household and heating season outside
Source: DECC, ECUK Table 3.6
appliances between 1970 and 2011, which illustrates its steady growth of around 1.7
per cent
year
over
this over
period.this period.
eriod.
rercent
this per
period.
year over
this per
period.
per
cent
per
year
Electricity
consumption
bytype,
household
domestic
Chart
4:Chart
Electricity
consumption
bybroad
household
domestic
appliance,
UK,
household
ectricity
tion by household
consumption
domestic
domestic
appliance,
by4:
household
appliance,
by broad
domestic
by
type,
UK,
appliance,
type, UK,
by broad
UK,by broad type,
Chart 4: Electricity consumption by household domestic appliance, by broad type, UK,
1970 to 2011
70 to 2011
appliance, by broad type, UK, 1970 to 2011
1970 to 2011
2,000
2,000
Cold LightCold
2,000
LightCold
Cold
Light
Thousand tonnes of oil equivalent
1,800
1,800
Consumer
Wet electronics
Consumer electronics
Wet Consumer electronics
1,800
ng Cooking
HomeCooking
computing
1,600
1,600
1980
701985
Wet
Cooking
Home
computing
Cooking
Home computing
1,600
Thousand tonnes of oil equivalent
Cold
Consumer electronics
Consumer electronics
Light
Cooking
Cooking
Thousand tonnes of oil equivalent
1,400
1,400
1,400
Wet
1,200
1,200
1,200
Home computing
1,000
1,000
Cold
1,000
800800
Consumer
electronics
800
600600
600
400
400
200200
0%
1975
1985
1990
400
200
0
1980
1990
1995
1970
1970
0
1970
1985
1995
2000
1975
1975
1990
2000
2005
1980
1980
1995
20052011 20002011
2005
1990
1995
1985
1985
1990
1995
2011
2000
2000
2005
2005
2011
2011
1975DECC,
1980Table
1985 3.10
1990 Table 3.10
1995
2000
Source:
Source:
ECUK
DECC,
ECUK
3.10
Source:
Table
DECC, ECUK
Source: DECC, ECUK Table 3.10
2005
2011
nics
2011,
electronics
were
consumer
the
were
largest
electronics
the consuming
largest
were
consuming
domestic
the largest
domestic
appliances
consuming
appliances
domestic
appliances
Source: DECC, ECUK Table 3.10
10.
In
2011,
consumer
electronics
were
the largest
consuming
domestic appliances
Chart
appliances
7), a efficiency
improvements
have
been greatest in new
dishwashers
which(Chart
demonstrated
38 per cent improvement,
and washing
machines
dishwashers
which demonstrated a 38 per cent improvement, and washing machines
with
a 31 per cent improvement.
6:with
Average
energy
consumption of new cold appliances,
a 31 per
cent improvement.
Chart 6: Average energy consumption
new cold
UK, of1990
toappliances,
2011 UK, 1990 to 2011
Chart1206: Average energy consumption of new cold appliances, UK, 1990 to 2011
120
120
Chest Freezer
Fridge-freezer
Chest Freezer
Refrigerator
Upright Freezer
Fridge-freezer
Refrigerator
Upright Freezer
100 100
Chest Freezer
Fridge-freezer
80
Index:
19901990
= 100= 100
Index:
Index: 1990 = 100
100
60
40
80
Refrigerator
80
Upright Freezer
60
60
40
40
20
20
20
0
0
1990
1990
0
1990
1995
2000
1995
2000
1995
2005
2005
2000
2011
2011
2005
Source: DECC, ECUK Table 3.13
2011
Source: DECC, ECUK Table 3.13
Chart 8: Savings due to better Insulation and heating
efficiency, UK, 1970 to 2007
Chart 8: Savings
dueeffect
to better
insulation
andappliances
heating efficiency,
UK, 1970
to 2007
Combined
of more
efficient
and homes
insulation
90,000
90,000
80,000
80,000
70,000
70,000
Thousand tonnes of oil equivalent
Heating systems
efficiency energy
Chart 8: Savings due to better insulation and heating efficiency, UK, 1970 tosaving
2007
100,000
Heating systems
Insulation
efficiency energy
saving saving
90,000
60,000
60,000
80,000
40,000
40,000
30,000
30,000
20,000
20,000
10,000
10,000
energy
Insulation energy
saving Actual energy
50,000
50,000
Thousand tonnes of oil equivalent
Thousand of tonnes of oil equivalent
100,000
100,000
70,000
consumption
Actual energy
consumption
60,000
Heating systems
efficiency energy
saving
Insulation energy
saving
50,000
40,000
Actual energy
consumption
30,000
20,000
0
0
1970
1970
10,000
1975
1975
1980
1980
0
1970
1985
1990
1985
1975
1995
1990
1980
1995
1985
1990
2000
2000
1995
2007
2007
2000
2007
Source: DECC, ECUK Table 3.18
Source: DECC, ECUK Table 3.18
19. The combined savings from insulation and heating efficiency improvements
reduced
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 allparty 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:
Email:
Website:
01932 570 030
info@capitalenergysolutions.co.uk
www.capitalenergysolutions.co.uk
Capital Energy Insulation | Capital Energy Electrical | Capital Energy Solar Systems
Shepperton Trading Estate, Littleton Lane, Shepperton, Middlesex, TW17 0NF