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NEA Policy Update 22 June 2016 Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION

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Page 1: Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION - Home - NEA | NEA · 2017-09-07 · • NEA supports a transitional price control for prepayment customers on low

NEA

Policy Update 22 June 2016

Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION

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Introduction This forum is taking place during considerable hiatus caused by the EU referendum. We are awaiting the following:

• Bonfield Review on Domestic Energy Efficiency • Consultation on transition year for ECO (2017-18) and further details on the

new fuel poverty obligation which will run from 2018- 2021 • Government response to the Energy and Climate Change Committees’

report into domestic energy efficiency • Further details on revisions to the Private Rented Sector regulations • Government response to the Warm Home Discount scheme • Government response to Data-sharing consultation • Ofgem response to consultations on improving the energy market for

Prepayment Meter customers • Ofgem response to consultations on moves towards Principle Based Regulation

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Agenda • Competition and Markets Authority • Big Energy Saving Network • Smart Energy GB and NEA • Fuel Poverty Assessment Tool • National Audit Office and Energy Efficiency • Warm Homes Discount Consultation • UK Fuel Poverty Monitor 2015-16 • Renewable Heat Scheme • Prospectus for Affordable Warmth • Opportunities for funding

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Energy Market Investigation

• The CMA will publish its final report in June 2016 setting out their remedies to tackle exclusion in the energy market

• In April 2016 the CMA found that consumers could have paid c.£1.7 billion a year less for their gas and electricity bills over the last three and a half years had the competitive markets been working effectively

• The CMA recommended a key way to address the level of detriment in the energy market is a transitional price control for the 4 million households who are on prepayment meters

• The CMA say this group in particular face limited competition from suppliers and whose ability to switch and find better deals is far more limited than for credit and direct debit customers.

• NEA supports a transitional price control for prepayment customers on low incomes and has urged the CMA, Ofgem and UK Government to move quickly to implement this remedy

See: www.gov.uk/cma-cases/energy-market-investigation.

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Big Energy Saving Network

Applications for grant funding under the Big Energy Saving Network from eligible third sector organisations and community groups are now open! BESN is a £1.7 million programme jointly funded by the Department of Energy and Climate Change and NEA to support organisations deliver a programme of outreach to vulnerable households and train frontline workers. Closing date : midnight 10th July 2016 Application and guidance: https://www.gov.uk/government/publications/big-energy-saving-network-grant-offer-fund Questions: [email protected]

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Smart Energy GB in Communities • In March 2016, NEA agreed a partnership with Smart

Energy GB to be part of a consortium made up of NEA, Energy Action Scotland, Charities Aid Foundation and Media Trust to deliver a part of its consumer engagement campaign

• The consortium will deliver a new programme forming part of Smart Energy GB’s campaign, entitled Smart Energy GB in Communities.

….. More later

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Smart Energy GB in Communities • The combined expertise of the consortium, led by NEA, will

help Smart Energy GB to ensure that everyone in England, Scotland and Wales can realise the benefits of smart meters, including those who are more vulnerable and might face barriers to benefiting from this technology.

• More detailed presentation about the bid fund and how to become part of the campaign to follow within this forum

• For more information regarding the fund and how to apply: www.nea.org.uk/media/news/170516-1/.

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Fuel Poverty Assessment Tool • Designed to help frontline home energy efficiency assessors and fuel

poverty workers calculate whether a resident is living in fuel poverty. • Also calculates the impact of different interventions on the level of fuel

poverty to help assessors identify the most cost-effective measures. • Development was co-funded by NEA, Joseph Rowntree Foundation, Eaga

Charitable Trust and Citizens Advice. • Recent Cabinet Office consultation into better use of data in government

should also result in the introduction of a new primary power to extend data-sharing with suppliers to further automate WHD which is likely to be wrapped into a new Data-sharing Bill later this year

• NEA has urged Government to use the Bill to help public sector bodies share data for the purposes of enhancing services provided or supported locally by public sector bodies such as local authorities or

GP practices. See: www.nea.org.uk/fuel-poverty-assessment-tool-home/.

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National Audit Office • NAO report claimed the failure of Green Deal could have been

prevented had Government listened to key stakeholders’ feedback in the policy design phase.

• The report illustrates a sharp decline in home energy efficiency delivery rates and how critical it is for the UK Government to accurately measure outcomes.

• The report also criticised Government for the complexity of the consumer journey.

• In response, NEA stated the UK Government must respond by ensuring future schemes limit and monitor capital contributions towards the cost of any energy efficiency work.

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National Audit Office • The publication was followed by a short inquiry by the Public

Accounts Committee (PAC) and NEA gave oral evidence to MPs on the 11 May.

http://parliamentlive.tv/Event/Index/34703bda-adbc-4e8b-9ed1-277bee175bf0

• The summary of the NAO report is available here:

www.nao.org.uk/wp-content/uploads/2016/04/Green-Deal-and-Energy-Company-Obligation-Summary.pdf

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Warm Home Discount

• Following close engagement with DECC prior to the consultation, NEA submitted its response on the 6th May welcoming the fact the scheme has been extended to 2020-2021.

• NEA noted that this will allow the policy to continue to provide crucial assistance to many low income and vulnerable households to manage their energy costs either through direct rebates or through the retention of industry initiatives.

• Will allow many organisations to continue to provide energy and debt relief advice and plan efficient delivery over successive years.

• NEA also stressed disappointment that the UK Government is still to extend data sharing powers to provide the automatic electricity discount to all low income families

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Warm Home Discount • Highlighted concerns that without expanding the WHD scheme

envelope overall, the planned reforms to target the GB wide policy on fuel poor households with low income AND high energy costs could have negative impacts.

• Within this response NEA also urges Government to ensure all energy suppliers are obligated to deliver the core group rebate or pay into an industry initiatives pot from 2017

Read NEA’s response at http://www.nea.org.uk/wp-content/uploads/2016/05/The-Warm-Home-Discount-Scheme-Consultation-response-by-National-Energy-Action.pdf

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UK Fuel Poverty Monitor 2015-16 • NEA and Energy Action Scotland (EAS) published the UK Fuel Poverty Monitor 2015-2016 on 9th May 2016. • NEA undertakes the Monitor report annually with EAS to

review fuel poverty policies in the four UK nations. • It provides an opportunity to identify cross-nation learning

to inform policy makers and practitioners. This year’s report reviews progress since 2010 within each country and at a UK level.

• The opening section of this year’s report aims to highlight the key differences and similarities in the way fuel poverty is addressed within the four UK countries. This includes a summary table and timeline with the most significant developments in attempts to provide greater levels of affordable warmth across the UK.

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Key Observations

• Progress to eradicate fuel poverty across the UK has slowed despite statutory commitments and current policies

• Frequent policy changes have hindered progress to eradicate fuel poverty across the UK

• Measurement matters and there is a greater need to collaborate to evaluate progress

• The wider impact of decisions made in Westminster must be addressed by building in a new mechanism to evaluate impacts of policy changes across the UK

• A formal cross-nation working group is necessary and would be welcome • Whilst delivery will vary across nations, investment in energy

efficiency should still be regarded a top priority

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Key Asks • UK Government continues to report on annual progress under the 10%

measurement of fuel poverty • Scottish and Welsh Governments, the Department of Energy and Climate

Change (DECC) work together in the coming months to assess how the changes to the GB wide ECO scheme will impact on England, Wales and Scotland’s own statutory fuel poverty targets

• Update and improve annual housing surveys for each of the countries to accurately measure progress towards national statutory commitments and track effective policy making

• Regular and transparent forum for representatives of the UK Government and Ministerial and departmental colleagues from across the UK nations, to better shape policy ideas and share good delivery practices to reduce fuel poverty levels

www.nea.org.uk/media/news/new-report-highlights-address-key -failings-eradicate-fuel-poverty-across-uk-nations/

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The report and the press release are available on NEA and EAS's websites and can be viewed http://www.nea.org.uk/media/news/new-report-highlights-address-key-failings-eradicate-fuel-poverty-across-uk-nations/. Hard copies are available on request/ see reference copy

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Renewable Heat Scheme On the 27th April 2016 NEA responded to DECC’s proposals to reform and enhance access to renewable heat technologies which are prohibitively expensive for fuel-poor households; • Not to rely solely on market driven capitalisation models to provide equal

access to low income off gas households • DECC should provide an annual ring-fence within the budget for fuel poor

households off the gas network who cannot afford the upfront costs of renewable heat technologies

• Undertaken alongside a continuation of the Central Heating Fund which should be committed year on year to align with the duration of the current gas distribution price controls, ending in 2021.

• Highlighted the findings from a project funded by DECC to carry out an investigation into the barriers associated with take up of, and access to, micro-generation and community energy by fuel-poor households.

Read NEA’s full response: www.nea.org.uk/wp-content/uploads/2016/ 05/NEA-Response-to-the-Renewable-Heat-Incentive-consultation.pdf

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Prospectus for Affordable Warmth

• 12th April 2016 meeting of the Fuel Poverty and Energy Efficiency Group agreed the secretariat will facilitate a new publication to summarise the benefits of current local and national schemes which do (or can) provide affordable warmth or warm and healthy homes across the UK.

• The prospectus will look to transcend a narrow focus on policy specific barriers and outline how successful affordable warmth schemes can deliver major social, economic or environmental benefits either to individuals, communities, nationally, or across the UK .

• NEA hopes the prospectus will lead to an enhanced appetite to introduce or expand local/national affordable warmth schemes encouraging local councils and combined authorities, local enterprise partnerships, health & social services and healthcare commissioners to work collaboratively.

• The terms of reference and a call for evidence will shortly be launched. For more information please contact: [email protected]

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Closure of the Home Heat Helpline Due to “….significant reduction in call volumes despite a significant spend on promotion of the helpline” the service, offering free help and advice for people worried about their energy bills or keeping warm in winter, will close on 30th June 2016. Future contact encouraged with Citizens Advice Consumer Service on 03454 04 05 06 or Energy Saving Advice Service (ESAS) on 0300 123 1234

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Award Schemes and Funding Opportunities

Energy Impact Award Scheme – for best practice in tackling fuel poverty in local communities. First prize £10,000, runner up prize £7,500. Sponsored by British Gas Closing date – 13th July 2016. www.nea.org.uk/award-schemes

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Award Schemes and Funding Opportunities

Smart Energy GB in Communities grant fund - large and small grants available for community and regional organisations that can help engage priority groups with smart meter rollout. www.cafonline.org/about-us/our-grant-programmes/smart-energy-gb-grant Big Energy Saving Network - grants of £5,000 available to support eligible third sector organisations and community groups deliver help and advice. Closing date – 10th July. See www.gov.uk for more info.

Page 23: Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION - Home - NEA | NEA · 2017-09-07 · • NEA supports a transitional price control for prepayment customers on low

NEA Annual Conference

21-23 September 2016, Manchester To register your interest in attending, go to the NEA website: www.nea.org.uk/conference2016

Page 24: Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION - Home - NEA | NEA · 2017-09-07 · • NEA supports a transitional price control for prepayment customers on low

Thank you

Andy Littlewood Project Development Coordinator

[email protected]

07834 178975

Page 25: Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION - Home - NEA | NEA · 2017-09-07 · • NEA supports a transitional price control for prepayment customers on low

Regional Update June 2016

Page 26: Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION - Home - NEA | NEA · 2017-09-07 · • NEA supports a transitional price control for prepayment customers on low

Three Distinct Funds 1.Warm and Healthy Homes Fund – To establish new models of working with colleagues across the health and

social care sector

2.Technical Innovation Fund – To promote new solutions to fuel poverty utilising energy saving measures not

traditionally in scope of current schemes

3.Warm Zones Fund – Cost effective delivery of energy efficiency and carbon reduction measures and

related advice to vulnerable householders

Page 27: Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION - Home - NEA | NEA · 2017-09-07 · • NEA supports a transitional price control for prepayment customers on low
Page 28: Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION - Home - NEA | NEA · 2017-09-07 · • NEA supports a transitional price control for prepayment customers on low

Overview • Designed to align with the recommendations set out in the NICE guidance and

priorities identified in the Fuel Poverty Strategy

• Aims to tackle excess winter deaths & the health risks of living in a cold home • 43,900 excess winter deaths in 2014/15 – highest number since 1999. More

than a third were due to respiratory diseases. • Aims to develop new ways of working with health and social care practitioners

to ensure fuel poor households at risk of cold related illness are referred to assistance

• 18 projects awarded funding across England and Wales • Exploring innovative ways to target fuel poor households at risk of ill health • Overall programme aims to deliver energy efficiency interventions to c. 2,769

households • Throughout the project period:

– frontline practitioners will benefit from energy efficiency training – resident engagement sessions – social evaluation to capture outcomes

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Providing advice & support

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Case Study: East Sussex Partnership After picking up a leaflet in their local doctor’s surgery the client contacted East Sussex’s Winter Home Check service, as they had been without heating since September 2015 and needed advice

on damp and condensation. The client is disabled and has a long-term health condition,

including a respiratory ailment severely affected by living in a cold home. The client receives income support and Disability

Living Allowance. A Winter Home Check was carried out in February which

revealed that the client’s boiler was broken and the property was suffering from damp. The property’s EPC was Band E.

Using NEA’s grant, a new boiler has been installed bringing the EPC rating up to Band C.

Gap funding provided additional measures including thermal curtains, a door repair and energy saving advice.

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Headline Facts & Figures • 42 TIF Programmes now live (3 pending) • £4.5 million allocated to date • £2.6 million gap and match funding generated (combined) • Testing 19 technologies, 66 products • Covering England & Wales working with LA/HA/RSL’s & CIC’s • Forging existing and building new relationships for the charity • Providing vulnerable groups with the opportunity to be ‘early

adopters’ of innovations; a unique undertaking • Low income FP households

Page 33: Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION - Home - NEA | NEA · 2017-09-07 · • NEA supports a transitional price control for prepayment customers on low

Overview of projects and technologies • We have a variety of large and small measures to be installed

in varying property types.

These are grouped into the following categories • Installation of a new heating systems – mCHP, ASHP, GSHP, GAHP

• Improvements on current heating system – Oxypod, Tadpole • Insulation measures – park homes and domestic dwellings • Heating control systems - various • VPO units, Heat Stores, Battery Stores, Heat Recovery

Page 34: Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION - Home - NEA | NEA · 2017-09-07 · • NEA supports a transitional price control for prepayment customers on low

Innovation Fund Lower Cost (Small Measures)

Radiator Fans

Heating Controls

Smart controls

Boiler optimisation

Heat recovery ventilation

Voltage optimisation

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Innovation Fund Higher Cost (Large Measures)

Micro CHP

Hybrid ASHP

Gas Absorption heat pumps

Boiler flue gas heat recovery

Air to Air Heat Pumps

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Evaluation & Monitoring Common Approach

Aim: Evaluate Technical Performance of innovative product/project

– Monitor Input (Energy In) – Monitor Output (Energy out) – House Temperatures (Logging & Interviews) – Resident satisfaction & behaviour (interviews) – Other factors (Tariffs and Bills) – Evaluation – endorsed by Newcastle University

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Health & Innovation project summaries available at www.nea.org.uk/hip

Contact NEA for further information:

[email protected]

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Local progress on tackling cold-related ill health: NEA report to assess health and wellbeing board performance on addressing fuel poverty and implementing the NICE guidance on cold homes

Presentation for the West Midlands Fuel Poverty Forum 22nd June 2016 Juliette Burroughs Senior Policy and Research Officer National Energy Action

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Background • 2011 First Cold Weather Plan published • 2012/13 Health and wellbeing boards formed in

England and public health functions brought back within local authorities

• 2013 Public Health Outcomes Framework (PHOF) published, includes indicators on fuel poverty and excess winter deaths

• 2015 NICE guidance published on health risks associated with cold homes

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It is strongly recommended that fuel poverty and reducing excess winter illness and death are considered as ‘core business’ by health and wellbeing boards and included in joint strategic needs assessments (JSNAs) and joint health and wellbeing strategies (HWSs), in order to inform year-round commissioning. Public Health England, 2015

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Methodology 1. Strategies and JSNAs of 152 health and wellbeing

boards that were publicly available online by 11 March 2016 were evaluated against three criteria:

A. Action to address the PHOF indicator on fuel poverty and/or action to address other PHOF indicators that include initiatives to tackle cold-related ill health

B. Action to address the PHOF indicator on EWDs C. Action to implement the NICE guidance

recommendations or action that is in line with the recommendations (where a document was written before the NICE guidance was published)

2. Supplement this data with call for evidence to our

stakeholders

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Interim key findings: fuel poverty and EWDs

Figure 1. Reference to fuel poverty and excess winter deaths in health and wellbeing board strategies and joint strategic needs assessments

127 73 109 45 67

83%

48%

72%

30%

44%

0

20

40

60

80

100

120

140

Fuel povertymentioned in

JSNA or strategy

Fuel povertymentioned in

strategy

Excess winterdeaths mentioned

in JSNA orstrategy

Excess winterdeaths mentioned

in strategy

No mention offuel poverty orexcess winter

deaths in strategy

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Interim key findings: fuel poverty and EWDs

Figure 2. Prioritisation of fuel poverty and excess winter deaths in health and wellbeing board strategies

47 28 21

31%

18%

14%

0

5

10

15

20

25

30

35

40

45

50

Fuel poverty prioritised(strategy)

Excess winter deaths prioritised(strategy)

Both fuel poverty and excesswinter deaths prioritised

(strategy)

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Interim key findings: NICE guidance

Figure 3. Extent to which health and wellbeing boards are addressing the NICE guidance on cold homes

Figure 3. Extent to which health and wellbeing boards are addressing the NICE guidance on cold homes

33%

67%

33% (50) HWBs mentioningNICE guideline and/oraddressing NICErecommendation(s) in theirstrategies and/or JSNAs

67% (102) HWBs notmentioning NICE guidelineand/or not addressing NICErecommendation(s) in theirstrategies and/or JSNAs

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Interim key findings: NICE guidance

Figure 3. Extent to which health and wellbeing boards are addressing the NICE guidance on cold homes

Table 1. HWB performance on key NICE recommendations NICE recommendation HWB performance Health and wellbeing boards develop a strategy to address the health consequences of cold homes (R1)

13% of HWBs effectively demonstrate that they have a comprehensive strategy in place to deal with cold-related ill health

Health and wellbeing boards with partners put in place a single point of contact health and housing referral service that provides tailored solutions for people living in cold homes (R2 & R3)

19% of HWBs make reference to some form of local referral service or partnership to coordinate service delivery for people at risk from cold

Primary health and home care practitioners identify people at risk of ill health from cold homes and make every contact count to assess the heating needs of people using health services (R4 & R5)

15% of HWBs mention actions relevant to these recommendations, for example cross-agency data mapping and first contact alert and signposting services

Secondary healthcare and social care providers discharge vulnerable people to a warm home (R7)

5% of HWBs mention discharge procedures in relation to cold homes in either their JSNAs or strategies

Health and wellbeing boards and others to train and raise awareness amongst healthcare practitioners about cold homes issues (R8 & R11)

9% of HWBs mention actions to train or raise awareness amongst health and other frontline staff

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HWB performance ratings For each of our three criteria: fuel poverty, EWDs and the NICE guidance, HWBs scored: 0 if there was no mention of the criteria or actions addressing it 1 if they mentioned the criteria in their JSNA or strategy 2 if they prioritised the criteria in their strategy. Prioritisation means setting the criteria as a priority for action and/or referencing specific actions or a strategy to address the criteria The maximum score a HWB could achieve was 6. This means a HWB is prioritising fuel poverty and EWDs in their strategy, as well as demonstrating actions in line with NICE recommendation(s)

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Preliminary Performance Ratings: West Midlands

Rated 3 (3 HWBs)Birmingham Rated 4 (2 HWBs)Coventry Herefordshire Rated 6 (1 HWB)

Sandwell Walsall Rated 5 (0 HWBs) Solihull

An additional 8 HWBs scored below 3.

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West Midlands Case Study: Solihull

• Strategy sets out to tackle fuel poverty through the Winter Warmth Campaign ▫ In existence since 2008 ▫ Support and assistance to vulnerable residents

• Scheme provides: ▫ Emergency equipment and assistance for heating

breakdowns ▫ Referral mechanism to partner services ▫ Advice and information helpline

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Call for Additional Feedback

• Do you consider a HWB’s score is a fair reflection of its involvement (or not) in local cold homes initiatives?

• If you consider a HWB’s score unfairly low or too high, please let us know and provide evidence to support your claim.

Feedback requested by Fri 1st July or talk to us after the forum today

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Thank you

• Juliette Burroughs:

[email protected] • Jamie-Leigh Ruse:

[email protected] www.nea.org.uk

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TIF Case Study

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Technical Innovation Fund

Micro CHP boiler installations

[IL1: PROTECT]

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What does a Micro CHP boiler do?

• Similar to a conventional gas boiler • Produces electricity for use in the home • Eligible for Feed-in Tariff (not for this project as

funded by Ofgem) & Export Tariff

[IL1: PROTECT]

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Identifying people/properties

Ideally suited to: • Larger properties • High energy usage • Mains gas supply • Address fuel poverty in private sector

[IL1: PROTECT]

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Project requirements

• EPC rating of D or worse • Dwellings to be within CSCo (Carbon Savings

Community Obligation) areas • Household annual income below £16,200 • Council match/gap funding • Existing delivery partner on board

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Our Approach

• Initially targeted applicants for existing

Affordable Warmth Scheme • Particular emphasis on areas with high fuel

poverty • Referrals from other teams/organisations • More difficult than we thought!

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Client Consultation

• Initial discussion to explain benefits • Support from NEA Project Development Co-

ordinator • Achieve ‘buy-in’ to ongoing monitoring • Ensure recipients are willing to embrace new

technology

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The process

• Arrange EPC surveys and quotes for each

property. • Install monitoring equipment at least one

month before installation • Ensure close contact with client throughout

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Case Study

• Semi-detached ex-council dwelling • Single glazing • Solid walls • No central heating • Both residents suffering from multiple

sclerosis

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[IL1: PROTECT]

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Ongoing Monitoring

• Data loggers installed in 2 rooms per property • Independent gas meter for boiler • Meter to register electricity generated by

boiler • Fuel bills • 12 month monitoring period

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The Flow Boiler and Electric meter

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Monitoring Equipment

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The outcome

• A Flow boiler serving an efficient and effective central heating system.

• A warmer, comfier and happier home. • Electricity generated by the Flow boiler for use

by the household - washing machine , kettles etc.

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Happy Client !

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Any Questions?

• Mark Taylor – Energy Efficiency Officer Tel: 0121 569 5396 Email: [email protected] • Cathy Leyser – Healthy Homes Project Officer Tel: 0121 569 2935 Email: [email protected] [IL1: PROTECT]

Page 67: Andy Littlewood Project Development Officer NATIONAL ENERGY ACTION - Home - NEA | NEA · 2017-09-07 · • NEA supports a transitional price control for prepayment customers on low

Jem Maidment

Head of Communications, Utilita Energy

Pay as you go energy and the fight against fuel poverty

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Smart meter rollout

• Every home and small business to be fitted with a smart meter by 2020 • 53 million smart meters in 30 million premises • Three million already installed

• 50 million still to fit in four and a half years

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How do smart meters help?

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Control

• See energy usage in real time • Leads to energy saving behaviour • Pay as you go energy – no unexpected, estimated bills

• Confidence, honesty & transparency

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Education

• Promoting greater awareness

• Smart meters show how consumption translates to cost • In-home display – ease of use

• The cheapest and greenest energy is the energy you never use

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Fuel poverty

• Prepayment smart metering is part of the solution to fuel poverty • 2.35 million fuel poor households – most not on prepayment meters

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Fuel poverty • DECC Report

o 48% of fuel poor households pay through direct debit o 27% of fuel poor households pay through prepayment meters

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Fuel poverty • Ofgem data

o Prepayment households least likely to be in severe fuel poverty o Both Standard Credit and Direct Debit households have a higher fuel

poverty gap

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Fuel poverty • CMA Report

o 70% of consumers stuck on high price standard variable tariffs

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How else does Utilita help?

• Warm Home Discount o 2015 – provided to c. 5,300 customers

o 2016 – expected to rise sharply in line with customer growth

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How else does Utilita help?

• 5% price cut on July 1 – third cut in 2016

• We cut prices at the right time o First supplier to cut in January

• Price commitment – cheaper than the Big Six since 2008

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About Utilita

• Challenging Big Six dominance of the market (87%)

• Customer growth .

o April 2014 – 90,000 o June 2016 – 350,000

• First supplier to scrap all standing charges

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An overview of Warm Zones & delivery of the Warm Zones Fund

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What is a Warm Zone?

• Not-for-profit local partnership that delivers an integrated package of energy efficiency measures & advice to target homes in certain geographic areas

• Local management & delivery => more responsive, flexible and customer-focused

• Integrates more funding and ensures best value for partners and residents

• Warm Zones is a Community Interest Company, successfully operating since 2001 – Wholly owned subsidiary of the national fuel poverty

charity NEA with separate WZcic Board

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Warm Zones Community Interest Company

• Warm Zones CIC established in 2000-01 • A CIC is a regulated company created for the use of

people who want to conduct a business for community benefit – Assets & any surpluses must be dedicated to the defined

“community of interest” • Helps ensure greater local impacts & gains

– More investment to help boost the local economy & support local jobs

– Is able to prioritise the most vulnerable homes – Helps create a longer-term partnership outlook that delivers

enhanced gains over time

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NEA & Warm Zones cic • The established and continuing role of Warm Zones – as a

wholly owned, not-for-profit subsidiary of NEA - is to directly contribute to the charitable aims of NEA by delivering the relevant measures and services for vulnerable clients

• NEA has oversight of Warm Zones to the extent necessary to effectively discharge its statutory obligations and to facilitate appropriate risk management for the charity, consistent with Warm Zones having full responsibility for the day-to-day operation of the business

• NEA and Warm Zones work in as open, collaborative and constructive a manner as is reasonably practicable to ensure that their strategies are aligned and to optimise their effectiveness in taking forward the aims of both

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The Warm Zone operational ‘hubs’

• Northern England

• Hull / East Riding

• Midlands

• London & South East

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Note: The ‘borders’ for each hub are indicative only and on occasion operations may extend beyond these

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Health & Innovation Programme

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NEA Health and Innovation

Programme

Warm Zones cic Warm Zones Fund

Various Technical Innovation

Fund (Drax & Intergen)

Various Warmer Healthier

Homes Fund (Drax only)

Larger measures 10 regional projects

Smaller measures 10 regional projects

Larger measures 11 regional* projects

Smaller measures 11 regional* projects

* Note: Includes 1 project in each of 9 English regions + 1 in Wales + 1 in Scotland (to be delivered via EAS)

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The “Warm Zone Fund” Criteria / WZF Drax Intergen

Total fund available (including all measures, fees and VAT)

£10 million £3 million

Eligible areas All GB (with at least 10% measures in Scotland and 5% Wales and overall 10% off gas)

Around 3 power stations in Cheshire, Lincolnshire & Essex

Eligible homes / tenures All tenures (with at least 65% in private) All homes in CSCO 25 or CSCO rural 25 areas

As for Drax

Eligible measures Private = Heating, SWI, HTTC, CWI & LI Social = as Private but not heating + benefits & energy advice

As for Drax

Matched funding To be maximised but cannot match vs ECO in any one property

As for Drax

Grant funding levels Partial but up to 100% for some lower cost measures

As for Drax 7

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Warm Zones Fund

• Value: – Drax: £10m – InterGen: £3m

• Geographical coverage: – Drax: England (85%);

Scotland (10%); Wales (5%) plus 10% (overall) in off gas areas

– InterGen: England only: In areas around the company’s power plants:

• Rocksavage (Runcorn) • Spalding (Lincolnshire) • Coryton (Essex)

WZcic HQ WZ hub office Intergen project area

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Delivery to Date • Drax

– £6M committed – 50 Schemes – Over 2,400 properties – Over 2500 measures

• Heating: 38% • SWI: 32% • Loft and Cavity: 30%

– 71% Private sector

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Delivery to Date • Intergen

– £1.1M committed – 10 Schemes – 530 properties – 544 measures

• Heating: 55% • SWI: 15% • Loft & Cavity: 30%

– 78% private sector

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Local Projects • Birmingham

– Heating and Insulation – Reactive Repairs – Low income/health issues

• Dudley – Heating and insulation – Low income/health issues

• Shropshire – Heating and insulation – HeatSavers (low income/health issues)

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Local Projects • Staffordshire

– Heating and insulation – Low income/health issues

• Tamworth • Lichfield • Stafford • Newcastle under Lyme • South Staffs

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Local Projects • Sandwell

– Loft top ups – EWI – Heating & Insulation – Reactive Repairs – Low income/health issues

• Coventry – Heating & insulation – GP referrals

• Solihull Community Housing – EWI

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Questions?

For further details contact:

Lorraine Gumbs, Regional Manager, WZcic

[email protected]

0121 544 4689 / 07976 350274

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