National Energy Action Fuel Poverty - Green Deal and ECO

1. NEA National Energy Action Fuel Poverty - Green Deal and ECO

2. Overview • Overview of fuel poverty • Fuel Poverty in London • Overview of Green Deal and ECO • What the Green Deal and ECO mean for you

3. Overview of fuel poverty • Definition • Where a household needs to spend 10%+ of its income on energy for warmth, lighting and appliances. • Causes • Low household incomes • Fuel costs • UK’s thermally inefficient housing – inadequate heating and insulation • Single occupancy (property rich, cash poor)

4. health outcomes of cold homes In Britain, a cold snap during a mild winter is followed: Two days later - increase in heart attack admissions by up to a third Five days later – increase in thestroke admissions Twelve days later - increase in admissions for respiratory illnesses 24,000 excess winter deaths in England and Wales in 2011/12 Estimated to cost health and social services £1bn annually

5. Other impacts of fuel poverty Social impacts Environmental impacts Economic impacts

6. 10% Windows Through the walls 35% 15% Draughts 15% Floor Where the heat goes Roof 25%

7. What can be done • Energy efficiency: insulation, heating and draught proofing can reduce energy costs by 30-40% • Income: Income maximisation through benefits health checks • Fuel bills: claim warm homes discount, best tariff, most suitable payment method and priority service register • Human element: support with understanding and using heating system e.g. understanding cost, using controls, finding best heating pattern for daily routine

8. Fuel poverty in London • Approx. 350,000 households in fuel poverty • 2,800 excess winter deaths in 2011/12 • Many older ‘hard to treat’ properties with solid walls • Conservation areas • High housing / living costs • mean less to spend on fuel • More difficult to get installers • to inner London • Historically under-represented • in scheme delivery

9. Fuel poverty assistance – all change • CERT and CESP finished at end of 2012 • Warm Front – new applications ended 19 January 2013 • DECC Local Authorities Competition – Fuel Poverty Fund 2012-13

10. Fuel poverty assistance –ongoing and new • The Warm Home Discount • Fuel companies’ Priority Services Register • NEW - the Green Deal and ECO

11. Overview of Green Deal and ECO • The Green Deal and ECO are not only about fuel poverty though this presentation concentrates on that aspect. The Green Deal and ECO will: • Improve homes • Reduce carbon emissions • Benefit the local economy • Create jobs and training opportunities

12. Overview of Green Deal and ECO • Green Deal - what is it? • UK needs huge investment in energy efficiency of domestic properties • New way to pay for energy efficiency measures • Market-based scheme • Introduced in the Energy Act 2011 • launched on 28th January 2013, Accompanied by marketing campaign

13. Overview of Green Deal and ECO • Green Deal is based on a Pay-As-You-Savemechanism • Savings generated by installing an energy efficiency measure are used to help pay for that measure • Upfront capital costs of energy efficiency measures are reduced or removed entirely for the household via Green Deal finance

14. Overview of Green Deal and ECO • ECO - what is it? • ECO is the Energy Companies Obligation • It is designed to be complementary to the Green Deal, where Green Deal by itself may not be sufficient • ECO will be targeted at low income households and hard to treat properties

15. Green Deal process • Green Deal Assessment is done by an accredited Green Deal Assessor that covers: • Measures that can be installed – prioritised • Energy demand of the property • Energy usage by the household • Green Deal Report is produced that outlines Green Deal Finance Plan: • Accredited Green Deal Measures that can be installed • Likely savings from measures • Repayment period typically 8-25 years • Repayment amount that will be added to the electricity bill as a separate charge • Details of any capital contributions required • Green Deal Provider then funds the measures upfront and recoups the costs through the Green Deal Charge added to electricity bills. • The works are undertaken by companies that have become accredited Green Deal Installers.

16. Energy Companies Obligation (ECO) • Replaces CERT and CESP, the previous energy company obligations by a new obligation on energy companies • Works alongside Green Deal to provide: • additional support for packages of measures • Insulation and heating packages to low income and vulnerable households • Insulation measures to low income households

17. Energy Companies Obligation (ECO) • Carbon Emissions Reduction Obligation (CERO): requires energy companies to contribute towards solid wall insulation and non standard cavity wall insulation • Home Heating Cost Reduction Obligation (HHCRO): requires energy companies to fund measures that reduce heating costs for households in fuel poverty in private housing tenures • Carbon Saving Community Obligation (CSCO): requires energy companies to fund insulation in the 15% most deprived lower super output areas (and rural areas)

18. Green Deal, ECO and local authorities Green Deal and ECO - opportunities 1. Work with Green Deal providers to maximise the benefits 2. Work with Green Deal and ECO to tackle fuel poverty Create local partnerships to tackle fuel poverty via the Green Deal and ECO

19. Green Deal, ECO and local organisations Routes in to the Green Deal and ECO 1. Contact the Energy Saving Advice Service on0300 123 1234 2. Speak to your local authority Participate in local partnerships to tackle fuel poverty via the Green Deal and ECO

20. NEA Questions and Discussion