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Future of London Discussion group

“Are there lessons we can learn from

CERT/CESP for the new ECO world?”

Nigel Turner, Warm Zones Manager,

EDF Energy/London Warm Zones

Tuesday 13th November 2012

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Overview &strategy - Govt Policy Govt key Climate Change agenda drives policy

• 80% reductions on 1990 levels of Carbon Dioxide emissions by 2050.

• Deliver secure energy on way to a low carbon energy future

• Fuel Poverty strategy to elevate fuel poverty for all customers by 2016

• Warm Front - Domestic Energy Efficiency scheme

• LA Social & Private sector Decent Homes schemes

• No more public funds as Warm Front & Decent Homes phased out by 2013 and replaced with.......

• Green Deal & Energy Company Obligation (ECO)

- Save energy, Carbon Dioxide and support vulnerable consumers i.e. elderly; low income

• Up to 2020 focus on energy efficiency and completing cost effective measures begun in the previous decade, including: cavity wall insulation,

Regional/GLA pledge 60% reduction by 2025.

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Current Programmes to Dec 2012 CERT is 3rd supplier obligation 2008-2012

• Save 293 Million lifetime tonnes of Carbon Dioxide

• 40% Priority Group target certain low-income consumers - Qualifying benefits or those 70 & over

• 16.2 MtCO2 Super Priority Group – includes clients in receipt of Pen Credit, CTC income less £16,190

• 73.4 Mt CO2- professionally installed insulation

• OFGEM = 255 MtCO2 delivered by June 2012;

- 2m Cavities; 3m Lofts; 51,000 SWI ; 303m CFL

CESP obligation on Suppliers & Generators

• Save 19.25 Million lifetime tonnes of Carbon Dioxide

• Encourage “whole house” solutions/Area Based

• Target most deprived areas = Income Domain of the Indices of Multiple Deprivation (IMD)

• OFGEM report c6.1 MtCO2 delivered 122,337 measures in 66,977 homes by June 2012

• 433 schemes submitted by obligated parties; accounts for 97% of target if all delivered

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ECO & Green Deal – beyond 2013 Energy Company Obligation 2013-15 & beyond

• c£1.3bn/year of which £540m for vulnerable

• c£760m/year Carbon Emission Reduction all

Tenure

- Target = 20.9 Million Lifetime Carbon Dioxide

- Primarily Solid Wall; hard to treat cavities

• c£350m/year Affordable Warmth PRIVATE ONLY

- Target = £4.2bn cost savings

- Broadened eligibility criteria SPG + WTFC

- Primarily Heating and insulation, include lofts

and cavities

• c£190m/year Carbon Saving Communities all

Tenure

- Target = 6.8 Million lifetime Carbon Dioxide

- Poorest areas, and includes social housing

- Loft, cavity and other insulation measures

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Key challenges - Vulnerable Vulnerable people in fuel poverty & Priority groups

• do not advertise themselves

• are often the hardest group to reach /access

• often miss out on grants and services available

• many will be part of new ECO target group

Identifying & engaging the hard to reach .

• Many people in London ‘High Risk’, but due to

cultural differences and barriers of language, may

also be classified as ‘Hard to Reach

Finding the sources of funding to pay for: -

• assessments,

• energy efficiency measures,

• income maximisation

CONFIDENTIAL - Title of presentation © 24 November 2009 EDF Energy plc. All rights Reserved. 6

London Warm Zone - A Solution? • Area based - systematic door to door assessments conducted by multi lingual team

• Holistic programme delivery – integration of a mix of schemes and funding

• Delivery of energy efficiency measures (heating/insulation) – includes private

• Income maximisation – full benefit take up service

• Trusted - One stop shop

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London Warm Zone – A solution?

Marketing & awareness raising

Doorstep assessment

Analysis – What’s on offer

Energy Advice

Survey households for measures

Measures installation

Benefits referral

Performance reporting & learning

Income Max

Warm Homes

Discount

Carbon reduction

Fuel Poverty

Green Deal

ECO

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London Warm Zones - Outputs • Over 57,000 homes in London received measures through the scheme

• Over 220,000 assessed/energy audits

• New and replacement space and water heating systems

• Insulation measures such as cavity wall, loft, draught proofing

• Over £10 million in new or additional welfare benefits

• Developed an effective model which

- Works closely with key partners including Councils and Communities

• Received wide spread recognition from key stakeholders

- National Government (Departments of Energy and Climate Change)

- UK Regulator (OFGEM)

- Social responsibility (Business in the Communities)

- Regional Government Greater London Authority/RENEW scheme

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Are there any lessons learnt? • UK Government flagship scheme Green Deal 2013 onwards

- Households install energy efficiency measures such as heating/insulation at no up front cost

- Repayments made over period of time via customers electricity bill

- Only if customer meets “golden rule” where projected savings on energy bills are greater than the cost of the Green Deal loan

• The Energy Company Obligation (ECO)

- 2013 to 2015 £1.3 billion per year nationally from Energy Suppliers

- £540m per year on Affordable Warmth - helping low income/vulnerable

- £770m per year carbon saving obligation to support Green Deal

• Warm Zones discussions with EDF Energy on setting up an ECO pilot

- Targeting Individual private vulnerable households with

- Similar eligibility criteria (low income, vulnerable)

- Similar measures (Heating and insulation)

• MY CONTACT - nigel.turner@londonwarmzones.co.uk or 07875 112975