quarterly newsletter apr 2016 spring edition...2 | apr 2016 - spring edition - issue 10 introduction...

SPRING EDITIONQUARTERLY NEWSLETTER APR 2016

2 | APR 2016 - Spring Edition - Issue 10

Introduction

I am delighted to welcome you to our Spring 2016 Newsletter. The first few

months of 2016 have required Elmhurst to spend a significant amount of time

with Government and trade groups ensuring that they truly understand the value of energy

assessments, and that they continue to embed EPCs into all future energy efficiency initiatives.

Introduction

Stephen O’Hara, Managing Director,Elmhurst Energy

DECC are currently considering what the next phase of

ECO will look like from April 2017. There is currently an

internal review taking place which is proposing a new Pay-

As-You-Save funding model, that is considered by some to

be more attractive to consumers. In addition to this Peter

Bonfield is concluding his review of Green Deal in a report

now titled “Every Home Matters”. In some ways it’s

frustrating because everything is under review, but as of

yet there are no conclusions. However the positive news

is that solutions are being considered which should make

summer and autumn an exciting time.

The other great boost for many of our members is that

in April 2016 the Minimum Energy Efficiency Standards

will start to require landlords to assess the energy

performance of their buildings, and take action to achieve

a minimum of an E rating.

I am very pleased that the Andrew Warren, a great

advocate of energy efficiency and a real legend in our

industry, agreed to provide a footnote to this edition. His

belief that governments need to balance a carrot and stick

approach to encouraging energy efficiency is spot on, and

his metaphors typically amusing.

Now for a bit of news about Elmhurst itself. As many

of you will know the business is entering its 24th year

of trading and throughout that time we have focussed

exclusively on energy assessment tools, training,

accreditation and support, allowing us to proudly boast of

delivering Excellence in Energy Assessment.

Over the last 4 years we have invested in the staff and

management of the business and I am delighted to have

a new executive team, in Stuart Fairlie, Trusha Lakhani and

Martyn Reed to support me. They have helped design

robust systems and process for what we do, to develop

new products and services to benefit our members, and

give us the courage to acquire and successfully integrate

the energy assessment activity from BRE and Northgate PS

into our own. The collective result of this change is a more

resilient business.

With this confidence I have decided to step down from

direct management of the company and have asked

Martyn Reed to replace me as Managing Director. I will

still be very much involved as the Chairman of the group

of Companies and taking the lead on a number of related

business ventures which I am very excited about.

I would like you to join me in wishing Martyn the best of

luck with the new position and will ask him to introduce

himself more fully in the summer edition of this newsletter.

APR 2016 - Spring Edition - Issue 10 | 3

Contents

Introduction 2

Minimum Energy Efficiency Standards, helping energy assessors gain more business 4

Scotland driving improvement in Non domestic buildings 5

ECO evolution not revolution! 6

Looking forward to the New Training Calendar Year from Elmhurst 9

Bonfield Review update 10

Elmhurst Energy Integrates Design SAP software with the Home Quality Mark 11

EU referendum - how are you going to vote? 12

NEW U-Value Competency Scheme 14

Year on from TechNet 16

Carrots, Sticks and Tambourines; A Donkey Serenade – by Andrew Warren. 18


Minimum Energy Efficiency Standards, helping energy assessors gain more businessFrom April 2018, The Energy Efficiency (Private Rented Property) (England and Wales)

Regulations 2015 will bring into force Minimum Energy Efficiency Standards (MEES) in the

residential and commercial private rented sector.

From April 1st 2016 a tenant renting a domestic property

can request that a landlord makes improvements to

the property. If this can be delivered to a property at no

upfront cost then the Landlord cannot reasonably refuse.

The Minimum Energy Efficiency Standards dictate that a

landlord with an EPC Rating below an E will be required

to undertake work to improve the energy performance of

their property; otherwise they could face heavy penalties.

These new standards will be phased in over the next five

years, moving from targeting new leases to targeting ALL

residential and commercial leases.

The earlier landlords act, the more time they will have

to ensure their housing stock is up to the required

standards, especially in the case of commercial properties

where change can take significantly longer to action. An

Ideal first step for landlords is to commission an up-to-

date Energy Performance Certificate, as this will identify

the current rating (which may have changed over time),

and recommend opportunities for improvement. This is

great news for both domestic and non domestic energy

assessors, as it could result in more business.

Elmhurst Energy has produced MEES guides and fact

sheets for Domestic Energy Assessors and Non Domestic

Energy Assessors to use, in order to educate landlords

and market their services. Elmhurst’s Operations Director

Martyn Reed has commented “The guides and fact sheet

are a fantastic tool for energy assessors to use. Not only

will they educate landlords and letting agents about the

imminent Minimum Energy Efficiency Standards, but they

will also give them a reason to use the services provided

by their local energy assessor.”

To access the MEES guides and fact sheets please vist

http://www.elmhurstenergy.co.uk/help-support/minimum-energy-efficiency-standards

If you require any further information please contact the relevant technical support team.


Scotland driving improvement in Non domestic buildings

Legislation comes into force in Scotland on the 1st

September 2016 which will require owners of non

domestic buildings (over 1000m²) which are eligible for

an EPC for sale or rent, to have an additional assessment

carried out; the resulting document will be known as an

Action Plan. This will contain improvement measures

designed to achieve the energy performance target and

emissions target for the building. Certain buildings will

be exempt from this legislation.

A new energy assessor qualification will be required in

order to produce an Action Plan. This person will be

known as a Section 63 Advisor, who must first be a Non-

Domestic EPC Assessor.

A Section 63 Advisor will be required to:

• Explain the background to, and the application of,

the relevant legislation and be able to advise building

owners of any exemptions from the legislation.

• Familiarise themselves with the building in question.

( If they have not already done so through EPC

production.)

• Verify any existing EPC for the building to ensure it is

usable for further assessment or produce an EPC.

• Produce an Action Plan and agree improvement

measures with the building owner which will be most

beneficial to the owner or occupier and still achieve

the energy performance and emissions targets shown

on the EPC.

• Lodge the Action Plan on the Scottish EPC Register.

The Action Plan will record confirmation from the

building owner of their agreement to either carry out

the improvement measures or to defer

• the implementation by providing a Display Energy

Certificate on an annual basis until such time as the

measures are carried out. Display Energy Certificates

(DECs) can only be produced by a qualified DEC

Assessor.

• Where the owner opts to carry out improvement

measures, a new EPC is produced and lodged upon

the completion of the measures in order to record

the status of the improved building. A new Action

Plan is also produced and lodged confirming the

improvement works that have been carried out.

I’m sure you will have gathered that there are

opportunities here for qualified Section 63 Advisors

to produce possibly more than one EPC and more

than one Action Plan. If the Assessor is also a qualified

DEC assessor they would be able to produce DECs on

an annual basis (if the client opts to not carry out the

improvement measures in the Action Plan).

We will shortly be announcing dates for training courses

in Edinburgh for both Section 63 Advisors using ISBEM

5.2g and DEC Assessors using the new Scottish ORCalc

software.


Deemed scoring essentially groups

properties together (in a matrix) so

that ‘simple’ traits such as style and

build age will be enough to calculate

the carbon saving on installing any

given ECO measure, such as cavity

wall insulation or loft insulation. The

deemed ‘tonnage of CO2’ of any

measure can then be traded with

the utility companies to satisfy ECO

requirements.

This would remove the need for the

Energy Performance Certificate which

currently satisfies the requirement for

working out the ‘carbon savings’

The new proposed system is indeed

simple, but it is also very crude. The

move is seen as a hark back to the

‘good old days’ of CERT and CESP,

the previous policy to ECO. The

introduction of Energy Performance

Certificates (EPCs) into the ECO policy

apparently caused, for some, an overly

complicated system of bureaucracy

and regulation. Deemed scoring will

work more effectively according to the

people at the ‘coal face’ of installation

and lead finding.

Elmhurst Energy believes that EPCs

actually gave confidence, quality and

accuracy to the carbon scoring claims

made for ECO scores.

The Department for Energy

and Climate Change (DECC)

have recently announced

that Energy Companies

Obligation (ECO) funding

from April 2017, is likely to

move to a method called

‘deemed scoring’. This is

being pushed by installers

and utility providers as they

believe it simplifies the

current ECO process.

Stuart Fairlie - Head of Technical

ECO evolution not revolution!We also believe that the UK

population would want to know the

‘truth’. An EPC measures the home

as it is, and also vitally identifies all

other ‘energy efficiency’ measures

that can be applied, saving money

and making homes warmer. It is also

an ‘independent’ certificate that is

not solely interested in one or two

measures being delivered by any

given Government Policy.

Therefore it is vital that if ‘deemed

scores’ are indeed decided as the way

forward, OFGEM and the Government

mandate that, at the very least an

EPC is created after the improvement

measures have been installed. Not to

interfere in the mechanics of the ECO

policy, but to give homeowners and

tenants the ‘truthful’ position of their

home after the improvements have

been made. After all who doesn’t

want to see that their home has

improved?

“Deemed Scores Overview”:

Deemed scores would rely on a

matrix, requiring users to decipher

a number of ‘quick’ questions about

a property. To help readers envisage

this it would probably look like the

example below for one insulation

measure (solid wall insulation):


House Type, which will probably

include Number of Bedrooms e.g. 2

bed flat, 3 bed semi, 4 bed detached;

the Age of Building (A-L in RdSAP

bands); the existing wall type present

(solid or cavity wall); the fuel type for

the main heating (Mains Gas, Elec, Oil

etc) and the improvement Insulation

measure (U-Value).

Using this ‘simple’ matrix there could

be approximately 25,000 variants for

this one ECO measure! If each ECO

measure (and there are currently 57)

has similar matrices applied the total

number of variants is going to be

massive. This in our opinion also starts

to open up some very interesting

questions relating to consistency and

quality.

The framework must have

consideration to the users e.g. a

house with two bedrooms upstairs

and a reception room downstairs

converted into a bedroom; Is this still

a two bedroom house? (two up two

down traditional house) or is it now

three bedroom house? The three bed

roomed house would clearly get more

carbon for the deemed score.

The conventions and rules must be

clearly defined; they must be in line

with RdSAP/SAP conventions to allow

comparison to the current policy. We

believe that this is certainly the area

that will be open to fraudulent activity

if the move to deemed scoring takes

place.

EPCs introduced a common, proven,

set of rules and conventions, which

actually worked very well. Elmhurst

believe that the deemed scores

will open up more questions than

answers. As it will impossible to ensure

consistency amongst users, who

would no longer need to be Domestic

Energy Assessors (DEAs), for situations

they encounter in real life properties

– without very thorough conventions

and rules which would need effective

policing.

“The measuring tool is not wrong”

EPCs offered the third party oversight

of carbon claims for ECO and other

Government policies. The move to

deemed scores feels like throwing

the baby out with the bath water!

The measuring tool is not wrong;

the fact that it didn’t allow quick ‘lead

generation’ was the main issue.

If ECO still relies on contributions for

the householder/landlord (CISCO/

CERO) how will the installer guarantee


any improvement values that would

be installed are correctly reflected in

an EPC? This is particularly concerning

if the property is a buy-to-let or the

ECO measure is for a landlord; as

they will be affected by the new MEES

regulations (F&G rated dwellings).

Potentially this could become open

to miss-selling, as measures are

installed to claim ECO but do not get

landlords to their legal requirement of

attaining an ‘E’ rating or above. This

will generate lots of negative press

and possible financial claims against

installers.

If there is no measurement at the

end, how do we manage our housing

stock moving forward? Elmhurst

believes that we need to create a

culture of change in the UK. We need

to give homeowners and tenants the

information they need to get best

value for money. This will allow good

decisions at the home level, as well

as at regional and national level. As

the old statement goes ‘if you can’t

measure it, you can’t manage it’

SAP and RdSAP allow accuracy and

flexibility, not only to reflect the

existing property but also on how to

improve the property. For example

how would a user overwrite a U-Value

to reflect a very poor wall, or a highly

improved wall using a simple matrix?

How do manufacturers show that their

product gives more savings to home

owners using the simple matrix? We

can’t see any solution to this problem

using the matrix approach. We think

that the industry needs to be very

careful in what it is asking for.

Whilst we see deemed scores helping

to identify quickly where a property

is suitable for funding; If we are

not careful the deemed scores will

become as complicated as the RdSAP

calculation route, but at the same

time less accurate. It will have many

restrictions on lots of property types

and will not allow for flexible and

dynamic solutions.

What Next?

Elmhurst believes that if deemed

scores do go ahead, they should be

kept simple, they should err on the

side of caution, and ultimately they

should allow users to use RdSAP/SAP

to keep the many advantages of that

approach. The RdSAP/SAP should be

part of the process if industry decides

and sees the increased flexibility that it

gives manufacturers and installers.

The EPC must be mandatory at the

end of the process at the very least,

as it is independent and validates the

measures installed. It ensures that

the householder/landlord knows the

‘truth’ about their home; it gives a

measurement to Government and

is vitally independent to the whole

scheme. Most importantly It will

tell them what else they can do to

help improve their home. This is not

to get in the way of the deemed

scores and ECO trading, but to add

value and oversight to the process.

This is something Elmhurst Energy

is lobbying hard for on behalf of

our members and the wider energy

efficiency industry.

Elmhurst Energy agrees that if the

tweaks to the ECO policy deliver

more energy efficiency installations

and leads, then this is a good thing.

However the only way we can all work

together is to start to look at homes

as an entity and that is what the EPC

does. If we as a society want to get

rid of Fuel Poverty and eradicate

cold and hard to heat homes, we all

need to work together. The EPC is

the measuring tool, it identifies other

applicable improvements and without

it, we are blind and can’t move forward

together.


Looking forward to the New Training Calendar Year from Elmhurst

As the current Training Calendar year is coming to a close, it is an ideal time to reflect on the

continued success of the Elmhurst Training Offer. We also wish to thank all those who have

continued to contribute their suggestions and support on how we can successfully meet

their training needs.

We have introduced many new courses across all strands

throughout the year including;

The hugely successful and unique Level 3 and Level 4

Non Domestic Practical days, which have provided an

opportunity for both experienced and new practitioners

to conduct real time surveys on complex buildings with

an industry leading expert.

Other new courses include:

• Solar PV

• Legionella

• Understanding Energy Consumption

• Basic Construction

• OCDEA Masterclass

• Energy Efficient Lighting

• Understanding Quality Assurance

• Health & Safety

• Inventory

• Project Management

• Introduction to BIM

• Managing your customers’ expectations

We have also continued to show our commitment to our

e-learning policy which adds flexibility to our training

offering by delivering over 20 Webinars across all of our

strands.

Thoughts on the New Training Year ahead.

Looking forward to the new Training Calendar year, we

are continuing to look at new areas to see how we can

best service the needs of our members and also engage

with new members.

We have listened to the demand for more events to be

delivered outside of our Lutterworth Training facilities

and have scheduled over 80 events at other regional

locations across the UK.

With the ever changing market and technological

advancements, Elmhurst Energy is keen to offer new

training events to meet these demands and will be

introducing a number of new courses during the coming

year. As ever, we would like to hear your ideas for new

events or additions to current events.

Some of the new and exciting courses coming this year

include:

• Introduction to Energy Management

• Making Elmhurst Mobile software work for you

• U Value Competency

• SAP Common Pitfalls and Conventions

• Air Conditioning

• RdSAP improving your Survey Skills

• Engaging with Customers – Customer Service Skills

I look forward to you sharing in our continued success and

seeing you at some of our events throughout the year.

Phil Hyams – Training Manager

If you would like to book on to one of these

courses, please click the links below.

• Project Management on

(11th May in Lutterworth)

• Introduction to Energy Management and

ISO50001 in Organisations

(25th May in Lutterworth)


Bonfield Review update

• Recommendations on the

improvement of existing

dwellings only, not commercial

and not new build.

• Confirmation of an underlying

belief that where quality

problems have occurred it’s not

the product that fails, but the

suitability of the dwelling for

that product and the quality of

installation that is lacking.

• A central hub of information for

consumers with a single website

portal and a “single point of

contact”, for consumers.

• The need for a Scheme quality

mark.

• A will to align MCS and PAS 2030

requirements

• That skills are an issue. Participants

will need to have “training”

to be able to have a “holistic

consideration (for the dwelling)”.

• Compliance and enforcement

to be rigorously enhanced with

more severe sanctions for those

that don’t comply and an ability

for certification bodies to share

data to prevent scheme hopping.

• Consumer protection will have

an enhanced code of conduct.

• An “Implementation Board” will

be charged with delivering the

recommendations of the report.

Elmhurst will continue to make

the point that Green Deal failed,

not because of the quality of work

delivered but because the financial

model did not make pay-as-

you-save an attractive and viable

proposition. The issues that this

review is wrestling with appear to

be all about quality and standards.

DECC advise that a seperate group

are considering the financial model

and we asked for visibility of those

discussions and a timescale for

implementation.

We had hoped to include a

feature on the Bonfield Review,

now renamed as “Every Home

Matters”, but unfortunately, at the

time of going to press, the report

has not been published.

However, as recently as Monday

20th March Elmhurst represented

PEPA at a DECC workshop at

which stakeholders were updated

on progress, unfortunately there

was still no firm commitment to

a publication date and, perhaps

surprisingly, it became clear that

the Review is not considering

the financial model that is

needed to underpin a Green Deal

replacement.

In summary, when the team

complete their review in “Spring

2016”, the conclusions and

recommendations are likely to

include;

For regular concise updates please visit Elmhurst Latest News on our website

www.elmhurstenergy.co.uk/news


Elmhurst Energy Integrates Design SAP software with the Home Quality Mark

Last October the BRE launched a new scheme called the

Home Quality Mark. The Home Quality Mark is intended

to replace the now defunct Code for Sustainable Homes

scheme and is currently operating on a voluntary basis

for developers to sign up to. The Home Quality Mark

incorporates some elements of the Code for Sustainable

Homes scheme, but it is aimed at being more consumer

orientated, with a simple star rating system for each

dwelling. The scheme consists of three sections; ‘Our

Surroundings’, ‘My Home’ and ‘Knowledge Sharing’, with

credits awarded for each section, resulting in an overall

star rating.

Although the scheme is still labelled as a ‘BETA’, it is fully

operational, and assessments can now be submitted by

Home Quality Mark assessors. More information on the

BRE’s Home Quality Mark scheme can be found at

www.homequalitymark.com

In support of the Home Quality Mark, Elmhurst Energy

has been working together with the BRE to ensure

Design SAP 2012 is the first SAP software to produce an

output that can be used by Home Quality Mark assessors.

Design SAP 2012 can now produce an output file which

can be used by Home Quality Mark assessors to submit

to the BRE’s Home Quality Mark assessment system. The

file can be produced for individual properties or multiple

properties in one quick action.

For more information on the update

to Design SAP 2012 please contact

our On Construction Support Team

on 01455 883 236.


Of course no one can predict the future, and there

is certainly a lot of political activity to keep us all

‘entertained’ over the next three months, but the

outcome of the referendum is not a given, and most polls

are suggesting that there is a solid lead for those that

want us to remain in the EU.

EU referendum - how are you going to vote?

The referendum result is just the

start of the process and it will

take many years to unravel legislation

that the politicians want to keep, from

that which they consider an imposition

from Europe. A good example is that the

Building Regulations/Standards require

an EPC to ensure that the property

satisfies the Regulations/Standards. Most

observers want to keep industry standards

and so the EPC helps this process.

Energy rating is not an invention of

Europe and has been used to assess

UK building stock for many years, and

will continue with or without Europe. The

Standard Assessment Procedure and the

reduced version were invented in the UK for

UK buildings and climate conditions.

Many commitments that the

Government make have nothing

to do with Europe, for example, we

recently signed up to reduce our carbon

emissions by signing up to a UN climate

change commitment. The Government

will still need policies and tools to enable

the country to use less energy and save

people money.

Consumers now expect information

on everything they buy and buildings

are no different. That demand will remain.

If you buy a fridge or car and see an

energy rating, why would consumers not

want to know the same for the single

biggest investment in their lives, their

properties?

You will all be aware that the Government has declared that we will be having a

referendum on the 23rd June 2016; the outcome of the vote will decide whether the UK

retains its membership of the EU. Knowing that Energy Performance Certificates (EPCs)

are a requirement that comes from a European Directive, some energy assessors have

already called to ask what that means to them and the future of EPCs.

However if the referendum decides that we are to leave

it is important to note that;

31

24


Elmhurst Energy's Martyn Reed gave his personal opinion

"The EU is a complex beast and affects

nearly every bit of our lives. No legislation

will be universally welcomed, however

when it comes to energy efficiency I think

that the EU has made a largely positive

impact. Various directives and rulings

have raised the profile of energy efficiency

matters in a way that the UK government

may not have done on their own, nor

found so easy without the collective drive

and experience that you get by operating

in a larger market.

A British exit from the EU will not be

a disaster for energy assessors, but it

will create uncertainty and ultimately

may allow the Government to rethink

the Energy Performance of Buildings

Regulations, which were the UK response

to the Energy Performance of Buildings

Directive. It is difficult to be sure whether

the EU has led the UK, or vice versa,

but, whatever the answer, because of

the poor state of our housing, the high

proportion of people in fuel poverty and

our dependency on imported energy,

it is important that the UK is at the top

table when it comes to driving energy

efficiency"

Whatever the outcome of the referendum, or the

decisions that follow, you can be sure that Elmhurst

Energy will be lobbying the decision makers to ensure

the good work Elmhurst Members do, is understood,

and that the value of EPCs is fully appreciated. We will

also commit to ensuring that you are kept up to date

with the EU referendum, as it develops.


The U-Value competency scheme:

• Provides a quality stamp of approval for calculating U-Values

• Compliments Elmhurst’s comprehensive U-Value software.

• Increases business revenue and helps to win corporate contracts.

• Is part of an industry scheme for reliability, consistency and quality.

If you are interested in joining the scheme please complete the online booking form which can be found at

www.elmhurstenergy.co.uk

NEW U-Value Competency Scheme

The course and competency scheme has been set up to

offer additional validity/credibility of U-Value calculations

produced by OCDEA and NDEA Level 4 assessors by

assessing and monitoring the competency of U-Value

calculations. Elmhurst’s approved logo will uniquely

identify those who are part of the scheme and will

provide a quality stamp of approval, which will reassure

customers. Information about our scheme members will

also be made publically available on our scheme listing

on the Elmhurst Energy website.

Elmhurst Energy is launching a brand new U-Value Course and Competency Scheme

in early April, that gives accredited On Construction and Non Domestic Level 4 Energy

Assessors an opportunity to further their understanding of U-Values and allows them to

expand their current skills and knowledge.


Going on Holiday?To avoid returning to an overdue QA request, please remember to notify the QA Admin Team of your holiday dates.

Your holiday notification should be e-mailed to:

Domestic: [email protected]: [email protected] Construction: [email protected]


Year on from TechNet

Following the success of Elmhurst’s 2014 Conference, our Members emphasised

the need for regional events. In response we held our first pilot TechNet event

in Warrington in January 2015 and went on to provide another 9 TechNet events

throughout the UK.

Almost 150 individuals have attended this networking

event over the last year, with TechNet proving to be very

popular with Assessors across the UK. Open to both

Elmhurst members and members of other schemes,

TechNet provides industry updates, an excellent networking

opportunity and 2 hours CPD. It has become a very

successful event for the Energy Rating Industry.

With the constant changes in Government policy and

Legislation in recent times it has been an eventful year,

with TechNet providing an opportunity for Energy

Assessors to keep up with developments and discuss

their implications; covering subjects such as the closure

of the Green Deal Finance company, new Minimum

Energy Efficiency Standards, and new opportunities like

Legionella Risk Assessment.

With the purchase of BRE and Northgate schemes by

Elmhurst in 2014 and 2015 respectively, in addition to

the regional events for new members, TechNet has also

provided additional opportunities to welcome those new

members and demonstrate Elmhurst’s newly developed

range of mobile software provided, free to all members.

TechNet has also been a great opportunity for Energy

Assessors to suggest what they need to help support

their businesses; for example at the Warrington TechNet

at the end of February, attendees emphasised how

important regional training was for them, so in response

we released a new RdSAP Masterclass CPD Training

course in Warrington on the 23rd March.


Due to popular demand Elmhurst have now released additional TechNet dates throughout 2016:

Elmhurst Energy are at the forefront of Energy Rating and we welcome feedback from our Members, so if

there is anything you would like to add to the TechNet agenda please let us know.

To reserve your place now please visit our website www.elmhurstenergy.co.uk/training/networking

27th April 2016 London

25th May 2016 Leeds

29th June 2016 Exeter

27th July 2016 Durham

24th August 2016 Sevenoaks

28th September 2016 Stirling

26th October 2016 Belfast

29th November 2016 Lutterworth

7th December 2016 Cardiff


With the ‘Bonfield Review’ on

our doorstep, Andrew’s view on

Government Policy is especially

pertinent:

“On average, we are all 18%

wealthier in real terms than we

were at the start of the century.

On average, we are achieving this

increase in affluence whilst using

14% less energy than in 2000.

One way this turnaround has been

achieved is by treating us all like

donkeys.

How come? Well, there are three ways

to get donkeys to do things. You wave

a carrot in front of their noses. You

bash them on the rump with a stick.

And most importantly, around their

ears, you rattle away on a tambourine.

All three work together, to get the

donkey’s attention.

Every successful energy saving

programme needs precisely the

same set of components. Carrots, to

provide inducements. Sticks, to ensure

compliance. And tambourines, to

increase awareness.

Put the three together, the programme

should work. Omit any one, and

Andrew Warren is the Hon President of the Association for Conservation of Energy (ACE).

Andrew is a very well known advocate for Energy Efficiency in the UK and has a CV that

speaks for itself; being a member of many Government and European Committees and

Forums, as well as publishing articles in many industry and national newspapers (including

the Financial Times, The Guardian and The Independent).

Carrots, Sticks and Tambourines; A Donkey Serenadeby Andrew Warren.

you have a distinctly Sisyphean task,

pushing that notorious boulder of

altering consumer behaviour uphill.

I want to focus on one case study,

where all three dimensions were

knowingly employed. And which

ended up delivering a really effective

improvement in energy efficiency.

The subject matter is domestic gas

boilers. In use in around 85% of British

homes. Each year around 1.4 million

of these are replaced. And practically

all of the replacements are now more

than 90% energy efficient.

It was not always thus. In the early

1970s, what is still to date the biggest

switch in the residential sector took

place. To celebrate the discovery of

gas in the North Sea, every home

previously linked into the town

gasworks, and many others on far

more intermittent heating systems, got

visited. And switched over, onto the

national network.

Lots of new boilers were installed.

Almost all made in Britain. Many

of these have subsequently been

replaced, but an alarmingly large

minority is still in place. Operating at

around 50% efficiency, if lucky.


Boilers are of course quintessentially

traded goods. Which means that

their effectiveness legitimately falls

under the authority of the EU. Some

twenty-five years ago, the European

Commission tried to set minimum

standards of efficiency for residential

gas boilers. They succeeded. But with

far less stringent standards than they

had hoped.

The main country that fought these

higher standards was the UK. On the

quixotic grounds that, because our

boilers are mostly to be found in a

home's living area (like the kitchen),

rather than in outhouses as on the

Continent, the “wasted” heat from

their inefficiency helped to keep

homes warm. Amazingly, this line

of argument proved persuasive: no

serious EU standards were agreed.

At that time, the high efficiency

condensing boiler was a very rare

beast. I remember having one installed

myself at home. Such was the lack of

expertise amongst local gas engineers

about this new fangled technology,

every time it malfunctioned,

somebody had to travel 150 miles

from the manufacturers in Hull to

effect repairs.

The technology became more reliable.

But it remained a distinctly esoteric,

niche market product. The similarities

in market profile with another

“alternative”, high efficiency product,

compact fluorescent lighting, are

striking.

The first to break the logjam on this

was the Energy Saving Trust – then

a government agency. It began

publicising condensing boilers as a

trendy new concept in home heating.

It deliberately offered cash back on

every installation. Gradually consumers

became more aware of the alternative

option. A few more heating engineers

became familiar with the technology.

The market share crept up, almost into

double figures.

But the full potential, of delivering a

20% or more improvement on each

existing boiler, remained unfulfilled.

Enter a determined minister.

Lord Larry Whitty held the energy

efficiency brief during the second

Blair government. During that

time, he presided over a complete

transformation in the market for

such boilers. So that now almost all

new installations are high efficiency

boilers, and 85% of these are A rated.

How did he achieve this? First by

talking to the boiler manufacturers.

And agreeing with them a multi-

faceted- and donkey proof -

approach.

It was now clear that the technology

worked. But consumers had yet to

demand them. And most heating

engineers from whom they would

demand them, on what is usually a

distress purchase – “my old boiler

is clapped out” - were yet to feel

comfortable installing them.

The deal was simple. If the

manufacturers would facilitate, Larry

Whitty would provide some pump-

priming money for re-training of

the heating engineers (carrots). This

opportunity for subsidised mid-

career retraining would receive

maximum publicity within the

trade (tambourines). And he would

also arrange a special change of

the relevant part of the Building

Regulations, to make gas condensing

boilers the norm (sticks).

This thoroughly integrated programme

was completed over a two-year

period. It was by any standards an

unqualified success. An initial worry

that old-fashioned heating engineers

would promote a patch-and-mend

alternative to boiler replacements has

proved completely unfounded.

Indeed the only blemish has been

that no extra promotional effort,

to encourage continuous faster

replacement of elderly but still

functioning boilers, has yet appeared.

The success of the intermittent boiler

cash back schemes – particularly

in Scotland - is evidence that the

marketplace responds to such stimuli.

But that should not detract from

celebrating what is a model of

effective co-operation between

industry and government. It delivered

an important step change in the

marketplace for energy efficiency. The

old donkey truly learned some new

tricks. And we are burning far less fuel

as a result.”

This article was first published by the Association of Environmentally Conscious Building (AECB) and has been reproduced with their kind permission

www.aecb.net/carrots-sticks-and-tambourines-a-donkey-serenade-by-aecb-guest-author-andrew-warren/

Andrew Warren.

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