Carbon Action NetworkThe Carbon Action Network (CAN) is a not-for-profit organisation supporting local government officers with a remit for reducing all aspects of the UK’s domestic-sector carbon footprint and tackling

fuel poverty.

Chairman: Paul Maplethorpe paul.maplethorpe@rotherham.gov.uk

Vice Chair Jane Mears Jane.Mears@eastriding.gov.uk

sponsor

• Introduction sponsors address

• Apologies• Minutes of last meeting

Green Deal Communities Update 20 January 2014 there is now £80 million of capital funding available. Applications are for a minimum of £1 million. LAs will be strongly encouraged to work together and with local partners to deliver

• DECC wrote to all front runner authorities 2 weeks ago some to go back to again this next week

• DECC received 35 bids in last 2 weeks.• Sorted by March 64 total representing 150 to

170 authorities .

• Changes to the Cashback scheme late last year.  Today 19/2/14 we were able to confirm further details on these changes including:

• An extension of the current scheme to June 2014• Uplift to some of the rates • An increase in the customer contribution cap • Changes to Insurance-backed guarantees for those not using Green

Deal Finance • The link to the PN is below.• https://www.gov.uk/government/news/more-cash-back-for-people-ca

rrying-out-green-deal-home-improvements• The quick guide for synopsis • https://www.gov.uk/government/publications/the-green-deal-cashbac

k-for-energy-saving-home-improvers

• As part of the Energy Bills announcements the government outlined proposed changes to ECO, £540 million will be made available over the next three years to boost energy efficiency.  £450 million of the £540 million will be aimed at households and private landlords.  Alongside this, the Green Deal is also being improved to make it more attractive for consumers and to remove unnecessary cost for companies

• Energy Company Obligation• The changes to ECO, to be consulted on, include:• Reducing the Carbon Obligation (CERO) target by 33%. The 2015

Carbon Saving Communities (CSCO) and Affordable Warmth (AW) targets will remain the same.

• Extending the ECO scheme to March 2017 with new targets for CERO, CSCO and AW at 2015 levels.

• Extending the CSCO element of ECO from the 15% to the 25% lowest areas on the Index of Multiple Deprivation and simplifying the qualifying criteria.

• Including District Heating as an allowable primary measure under CERO.

• Including loft and easy to treat cavity walls as an allowable primary measure under CERO.

• Introducing and standardising measures to prevent fraud, particularly around loft and easy to treat cavity wall insulation.

• Introducing a solid wall minima set at 100,000 measures to be delivered by 2017 across all companies and all elements of ECO.

Proposals to Ministers ECO imminent final clearance this month for the consultation

Targeted investment for more energy efficient homes within the Private Rented Sector (PRS), designed to help landlords meet the minimum standard (EPC E rating) that will be required under the PRS Regulations from April 2018.  We will also encourage landlords to bring their properties up to higher energy efficiency levels faster than the up-coming standards require. Still being worked on

• Pilot programmes with five social housing providers have demonstrated the cost-effectiveness of the new Glazing Upgrades scheme by Glassolutions.

• Tuesday 25th February 2014• Glassolutions, Meadows Road,

Brookfields Park, Manvers, Rotherham S63 5DJ

• CAN Chairs Executive Meeting minutes and update including ofgem

• DECC’s Big Energy Saving Network. • So far approximately 100 projects have received

up to £5,000 to raise awareness of fuel switching. This is only open to charities. LAs need to know about work happening in their areas as they are not told systematically.

• Off Gas Grid ForumThis group is the sub group of the Fuel Poverty

Advisory Group.

1 Distributers wanted to find easy to connect properties.

2 This group will look at areas that are presently highly unlikely to be joined to the grid.

Conor MolphyChris Hunt

09/01/14Camden Town Hall

Energy Companies Obligation (ECO) update

CAN Executive Meeting

6.8 million lifetime

tonnes of CO2

£4.2bn of cost savings

20.9 million lifetime

tonnes of CO2

 ECO is an obligation on 7 energy suppliers. It works alongside Green Deal providing subsidies for energy efficiency measures for domestic customers.

ECO has a focus on vulnerable and low income households / communities.

From 1 October 2012 to 31 March 2015, the overall targets are:

 

A brief overview

Carbon emissions reduction target

Carbon savings community target

Home heating cost reduction target

Obligations under ECO

Carbon Emissions Reduction Obligation (CERO)• Primary measures: Solid wall and hard-to-treat cavity wall insulation

• Secondary measures: Connection to district heating system and other insulation measures promoted as a package with a primary measure

Carbon Saving Community Obligation (CSCO)• Insulation measures and/or connection to a district heating system

• 85% measures must be delivered to homes in areas of low income

• 15% of each supplier’s total must be promoted to members of the Affordable Warmth Group living in a rural area (Rural Sub-Obligation)

•Adjoining areas – part of CSCO may be delivered in areas adjoining areas of low income.

Home Heating Cost Reduction Obligation (HHCRO)• Measures to improve the ability of a private householder to heat their home – specifically targets

low-income and vulnerable householders

• Heating qualifying actions, which includes the repair and replacement of boilers and insulation measures

Ofgem’s role

 Ofgem’s functions include (but not limited to):

determining  and notifying suppliers of their obligations; 

Developing Guidance to implement DECC’s legislation, i.e. the ECO Order;

attributing savings to completed qualifying actions; 

gathering relevant information, monitoring compliance and enforcement

approving transfers, excess actions, or re-elections as necessary;

determining whether a supplier has achieved its obligations

Ofgem’s role

Ofgem’s Powers: Ofgem’s powers are limited to the obligated energy suppliers only. We do not have oversight of the supply chain.  Nor do we make any payments under the scheme.

Great Britain Only: ECO applies to England, Scotland and Wales only and excludes Northern Ireland, the Channel Islands and the Isle of Man.

Domestic Only: ECO is targeted at the domestic premises only and does not apply to commercial market.

Measure Type : ECO provides for the installation of insulation and heating measures only. It does not cover other domestic energy usage such as appliances and lighting. 

Market Led: ECO is a market led initiative. Working within the rules set out in our guidance document, suppliers are free to meet their targets in whatever way they choose. This is intended to deliver ECO at the lowest possible cost to consumers. 

Contact details for all suppliers are available on our website

A supplier achieves its obligations by promoting energy efficiency measures to a ‘domestic energy user’ for CERO & CSCO or to a ‘Householder’ that is in the Affordable Warmth Group (‘AWG’) for HHCRO.

Social housing tenants & landlords are eligible under CERO & CSCO but are not eligible under HHCRO.

A ‘Householder’ is defined in our guidance. Generally, this is a homeowner or a person in private rented accommodation.

AWG eligibility relies on one person in the property being in receipt of specific benefits or tax credits.

A supplier may jointly fund a measure with a third party (other than another supplier), e.g. a local authority.NB: In this case the supplier will still need to satisfy us that it was a cause of that measure being installed, i.e. the supplier must “promote” the measure

Eligibility for ECO?

Suppliers will be expected to retain copies of the following for the purposes of audit:

– contracts (or other documents) which establish relationship between supplier & installer; and

– Evidence that a resident is AWG and a Householder if for HHCRO

– Evidence that a measure has been recommended for that property

– Evidence that the installer was PAS 2030 (or Gas Safe) and that the measures have been signed-off

– Evidence that the carbon or cost score was calculated correctly

– Installations may be technically monitored to ascertain whether they are compliant

Eligibility for ECO?

• Target = 15% of CSCO

• Must be promoted to the Affordable Warmth Group

• Rural Area = “A settlement of fewer than 10,000 inhabitants.”

Energy suppliers will have the ability to determine whether an LSOA is in a

Low Income or Rural area.

More information on low income and rural areas can be found in the DECC

document:

“Energy Company Obligation Carbon saving Community Obligation: Rural

and Low Income Areas”

https

://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48405/5536-

carbon-saving-community-obligation-rural-and-low-.

pdf

CSCO – Rural Sub Obligation

Progress to date

Monthly statistics are published by DECC for all measures notified to Ofgem.

Monthly and quarterly statistics are also published by Ofgem

• ECO will undergo a number of changes in 2014-2017

• Details on the proposed changes to the ECO scheme,

announced on 2 Dec 2013, can be found on DECC’s website.

• The proposed changes are yet to be publicly consulted on

and Ofgem will continue to administer ECO under the existing

legislation.

• If you have any questions on the proposed changes or the

consultation process you should contact DECC.

Changes to ECO policy

For further information

For your residents:England and Wales: Energy Saving Advice Service (call 0300 123 1234 at national rate)

Scotland: Home Energy Scotland (call 0800 512 012 for free).

Through them you can find out:• if you’re eligible for the ECO scheme• what support is available• how you can start to access it.

For Local AuthoritiesContact suppliers directly for information about funding levels and contracts (contact details on our website)

For more information about specific aspects of ECO please see• FAQs for consumers on our website• FAQs for intstallers on our website• The ECO guidance

Question and Answer session

Conor MolphyECO Technical Manager

Chris HuntHHCRO Manager

eco@ofgem.gov.uk 

Question and Answer session

• Events updates and other points

• DECC Community Energy Survey & Energy Follow-Up Survey

DECC have released findings from two surveys: The 2011 Energy Follow-Up Survey (EFUS) published on 28 January 2014, and a survey of UK adults on public attitudes to community energy in the UK, which informed their Community Energy Strategy

•

• Events updates and other points•

New Fuel Poverty Research from ACE & Energy Bill Revolution

ACE Research and the Energy Bill Revolution have published new research on fuel poverty figures which find that the number of children in fuel poverty has risen sharply and that half of all families have cut back on essentials like school uniforms and food to pay for their heating bills.

• Events updates and other points• DECC Consultation on district heating

DECC has published a consultation seeking views on the government’s approach to the implementation of Articles 9, 10, 11 and 13 of the EU Energy Efficiency Directive, as they apply to district heating, district cooling and communal heating (see CAN web for full text)Date: 14 Jan 2014

• Events updates and other points• April is re Election for Chair and vice chair

voting forms will go out shortly .

• Thanks to all • PAUL