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HOME ENERGY CONSERVATION ACT

Progress ReportMarch 2017

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Home Energy Conservation Act Progress Report 2017 Introduction The Home Energy Conservation Act 1995 (HECA) recognises local authorities’ ability to use their position to significantly improve

the energy efficiency of all the residential accommodation in their areas. In July 2012, the Department for Energy and Climate

Change (DECC) published a requirement under HECA for all local authorities in England to report on the measures they propose to

take to achieve this aim.

The first of these reports, known as a “further report”, was published in 2013. This and other subsequent reports, known as a

progress reports, are published at two-year intervals. This document sets out how Watford Borough Council has progressed since

the last HECA report in 2015 and how it will meet and continue to meet its strategic objectives in relation to improving the energy

efficiency of homes in the borough.

This report covers information with regards to energy efficiency for housing in Watford. It does not include our commercial

buildings or initiatives carried out to our own estate.

Watford: A profile Watford is the centre of a sub-region with the mid 2015 census estimates showing a population of 96,400, increasing by around

1.75% a year. As part of the London commuter belt Watford is strongly influenced by London; and whilst this brings the benefits of

a buoyant economy, it also brings significant housing pressures. The population density for Watford is around 4,375 people per

square kilometre meaning that outside of London it is one of the most densely populated districts in England.

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Compared to the 2001 Census, the private rented housing sector has increased from 3,170 homes in 2001 to 7,371 homes in 2011

(from 9.8% to 20.1% of the private housing stock). This was 3.6% higher than the average in England and important due to the fact

that typically these homes are less energy efficient than other sectors. Including social rented housing, the current estimate is at

37% of the 39,000 households. Furthermore, Watford has a high number of solid wall early 1900’s terraced houses, which tend to

be less energy efficient than newer dwellings.

A lot of the newer cavity walled housing estates were ex-council owned, although Watford no longer owns any housing, with all

stock being transferred to Watford Community Housing Trust (WCHT) back in 2007. Prior to transfer, the council had embarked on

a large scale insulation project, ensuring where possible all of its housing stock had loft and cavity wall insulation. A lot of the

transferred stock was of a suitable age for insulation upgrades meaning the average efficiency of the stock at the time of transfer

was very good. Poorly insulated rented properties are being targeted by the Energy Act 2016. They are currently prioritising

properties which have a low rating (classed as Standard Assessment Procedure (SAP) E, F or G rated properties). SAP is used as

the government’s method to compare the environmental and energy performance of buildings, to bring them up to a suitable

standard by 2018. WCHT owns 5,273 properties at February 2016, with the vast majority in Watford.

Watford Borough Council’s per capita domestic CO2 emissions have decreased by 27.2% since 2005 to 2014 statistics, now at

146.1 kt CO2 per capita (most up to date DECC, 2014 statistics). This is broadly in line with the national and Hertfordshire

averages albeit it represents the second largest fall in Hertfordshire with Watford already having the second lowest emission rate.

During the same period the Hertfordshire average shows a decrease of 25.7% against a national average decrease of 27.1%.

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However, the borough also has the highest proportion of fuel poverty within Hertfordshire; with the low income and high cost

definition (LIHC) at 8.6% of the housing stock deemed to be fuel poor, compared to the Hertfordshire average of 7.5% (most up to

date BEIS 2014 data). The Hills Fuel Poverty Review identifies the links between fuel poverty and health deprivation. While the

health of people in Watford is generally better than the English average, fuel poverty is a concern for the Council. There has been

a reduction in fuel poverty in Watford over a number of years, with a positive downward trend. Over 3 years from the 2011

statistics the percentage of fuel poor in Watford has gone down from 11.2% to 8.6%.

Another factor that is influenced by poor housing efficiency is the excess winter death rate. The Excess Winter Mortality Index

(EWM) can be used so that comparisons can be made between sexes, age groups and regions. The number of excess winter

deaths is divided by the average non-winter deaths, expressed as a percentage. Watford has a relatively high EWM rate. From

ONS data when averaged from 2012/2013 through to provisional figures available for 2015/2016 Watford EWM rate is 31.1%. The

Hertfordshire average is 22.1% with the England average for this period standing at 18.1%.

How we have been supporting the improvement of domestic energy efficiency? Since the last HECA summary statement in 2015 the Council has been progressing various activities aimed at improving domestic

energy efficiency.

External Wall insulation The council has continued to progress external wall insulation projects making use of Energy Company

Obligation (ECO) funding, government grants, resident contributions and the councils own funds. Since

the successful completion of Boundary Way phase 1 noted in the last HECA report three more major

projects have taken place;

£2 million spent externally insulating 285 homes

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• Boundary Way phase 2 - A partnered project with Three Rivers District Council, Thrive Homes and South Bucks green deal

consortium;

• Harebreaks phase 1 - A follow on project from Boundary Way phase 2 but to privately owned housing within the Watford

borough;

• Harebreaks phase 2 - Using the same cost and design principles but with a new ECO funding and partnership arrangement

with E.ON Energy Solutions. For the Harebreaks project, our Consortium won a Public Sector Energy Champion award for

the project in the Local Authority Community Category.

The projects combined values amounted to well over £2 million, completing substantial improvements to over 285 homes in the

combined project areas. The areas concentrated on some of the more fuel poor housing within Watford. Expected fuel bill savings

to residents are over £74,000 per year.

Herts Healthy Homes (HHH) Since 2012 the council has been an active partner in the Hertfordshire wide scheme, from bidding for funding to being on the

management board. The project provides home visits for temporary heaters, draught proofing and energy advice, such as

switching tariffs and advice on the efficient use of the heating system as well as providing referrals to ECO and other support

agencies. To increase referrals and home visits to the scheme the council commissioned a Greenaiders Gardening project which

helped to identify vulnerable people and therefore increased referrals to HHH.

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The council has also delivered initiatives on behalf of Hertfordshire County Council’s Community Well Being team. One such

project the council commissioned National Energy Action (NEA) to look at excess winter deaths, by monitoring 60 elderly residents

with temperature data loggers over the course of a year. The project has been used as an evidence base within Hertfordshire

County Council and has helped to support the development of a Herts County Council led ECO project, due to launch this year. At

this point in time all ten LA’s have agreed to contribute funding and to participate and there are other funding bid applications

awaiting decisions.

National Targets and Policy The requirement to improve the energy efficiency of homes stems from the legal requirements to reduce carbon dioxide (CO2)

emissions set out in the Climate Change Act 2008 and the government’s Carbon Plan, published in 2011. The Carbon Plan set the

following targets in relation to housing:

• to reduce greenhouse gas CO2 emissions by 29% by 2017, 35% by 2022, and 50% by 2027. Buildings are responsible for

around a third of our greenhouse gas emissions and for buildings this means a reduction between 24% and 39% lower than

2009 levels by 2027;

• to insulate all cavities and lofts, where practical, by 2020;

• By 2030, between 1 – 3.7m additional solid wall installations and between 1.9 - 7.2m other energy efficiency installations;

• By 2030, 1.6m - 8.6m building level low carbon heat installations such as heat pumps (Government modelling suggests that

21 - 45% of heat supplies to buildings will need to be low carbon); and

• By 2050 emissions from UK buildings to be “close to zero”.

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In 2000 the government set a target of eradicating fuel poverty in England, as far as reasonably possible, by 2016. Although good

progress was initially made towards this target, changes in the cost of energy and how fuel poverty were subsequently measured

now means that the target is aimed at improving the buildings efficiency. In 2014 Government introduced the Fuel Poverty

(England) Regulations. These regulations gave effect to the fuel poverty target to ensure that as many fuel poor households as is

reasonably practicable have a minimum energy efficiency rating of Band C by 2030 with mid-term targets of E by 2020 and Band D

by 2025.

To help tackle domestic housing energy efficiency the government introduced the ECO. The first phase of ECO, known as ECO1,

ran from January 2013 to March 2015. This placed obligations on larger energy suppliers to deliver energy efficiency measures to

domestic premises in Great Britain. The new obligation period, known as ECO2, launched on 1 April 2015. As this is running for

two years to 31 March 2017, ECO is now in the process of reform and from April 2017 a new cheaper domestic energy efficiency

supplier obligation will be introduced which is planned to run for 5 years. The new scheme aims to upgrade the energy efficiency of

over 200,000 homes per year, saving those homes up to £300 off their annual energy bill, tackling the root cause of fuel poverty

and delivering on the government’s commitment to help 1 million more homes this Parliament.

How have we helped improve domestic energy efficiency? Partner Working The council has a proven successful history of partnership working on housing projects to improve the energy efficiency and

housing condition of the stock. Some of the examples over the last 5 years are as follows;

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• Hertfordshire County Council – Health & Well Being Team: Helping to deliver the keep warm, stay well project in Watford

since 2012. As well as being part of the management team the council has promoted the scheme via its social media, bus

stop posters and other council communications.

• Health & Wellbeing Board (Herts CC Housing Quality Working Group): Currently working with Herts County Council on a

Herts wide project to offer ECO, including committing capital and revenue funding towards the project.

• Watford Community Housing Trust: Delivering a partnered project with Three Rivers District Council to externally insulate

327 dwellings for phase 1 of the Boundary Way estate. In addition the Trust went on to insulate over 170 additional houses

of their own stock on the Harebreaks estate.

• South Bucks Green Deal consortium: Externally insulated 177 properties on the Harebreaks estate and 158 on Boundary

Way phase 2

• Worked with E.ON and the charity, National Energy Foundation (who were partners for the Harebreaks)

• National Energy Action – Delivered independent evaluation and analysis of the works to Boundary Way

• Hart Homes: The council and Watford Community Housing Trust has formed a joint venture company. The newly formed

company aspires to deliver more than 500 new homes over the next five years with its first development having now been

granted planning approval. The new quality housing will strive to be energy efficient.

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Members of the

Department of Energy

and Climate Change

(now the responsibility of

the Department of

Business, Energy &

Industrial Strategy BEIS)

on a site visit to the

Harebreaks to look at the

scheme part funded by

DECC Green Deal

Communities funding.

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Here are some examples of work we have recently undertaken.

Completed two phases of an External Wall Insulation project at the Harebreaks to 177 homes

Saved residents over £80,000 annually on their heating bills

Completed the second phase of the Boundary Way External Wall Insulation project to 158 homes

Continued referrals to Herts Healthy Homes through adverts and promotion Saved annual CO2

emissions of around 370 tonnes

The Council will continue to promote, advise and champion sustainability

Continued to support vulnerable residents with housing improvements through our decent homes assistance and landlord enforcement work

Participated in developing NICE guidance via the Quality Standards Advisory Committee for the winter deaths quality standard as a specialist member

Watford is a borough that acknowledges Climate Change, maximises it’s opportunities and minimises its threats to improve the wellbeing of the community (Watford’s Climate Change Strategy)

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Targeting and Future Activity

Watford continues to work hard towards the principles of HECA, already completing projects that, as stated within the HECA

guidance, ‘take advantage of financial assistance and other benefits offered from central Government initiatives, such as ECO.’

Additionally, as one of the corner stones of HECA’s principles Watford has sought to ‘implement energy efficiency improvements

cost-effectively in residential accommodation by using area based/street by street roll out, involving local communities and

partnerships (e.g. social housing partners, voluntary organisations).’

To continue to target specific schemes to areas and implementing an area approach, the Council has

commissioned a housing stock model exercise delivered by the Building research Establishment (BRE).

Together with purchased bulk Energy Performance Certificate (EPC) records, council tax, benefit records,

Experian information and other available data, the model will build a comprehensive picture of the

borough. The project builds upon the previous work and preparation of quality data using our in-house

GIS mapping systems. This will allow Watford to target energy initiatives and provide a solid evidence

base for work areas. Under the new ECO guidance it is the council’s intention to use the ECO flex criteria

(where the council can influence funding to some targeted areas). It is proposed that this model will be

used to inform this policy.

The Herts Warmer Homes project aims to support over 700 vulnerable and low income households across Hertfordshire from

September 2017, to improve the energy efficiency of their homes. A joint project between Hertfordshire County Council (HCC) and

the district councils, it will use energy supplier funding via the ECO to install measures such as boiler replacements, first-time

central heating and insulation that will reduce fuel poverty and carbon emissions in people’s homes.

Commissioned a Housing Stock Model survey including using 15,500 purchased Energy Performance Certificate (EPC) data records

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What do we plan on doing to improve domestic energy efficiency? Smart Meters

Energy suppliers are required to install smart meters at all domestic premises and smaller non-domestic premises by the end of

2020. The roll-out is a significant and essential national upgrade of Great Britain’s energy infrastructure that is expected to deliver

£5.7 billion of net benefits by 2030. Smart meters will put households and small businesses in control of their energy, allowing bill

payers to see exactly how much their energy use costs. They will end estimated billing and make switching energy suppliers easier

and faster. For the council this represents an opportunity to raise awareness and encourage energy behaviour change. In addition

the council will promote information and advice, working from information provided by Smart Energy GB who are responsible for the

roll out awareness.

Council Strategy The council has commissioned a stock modelling exercise delivered by the BRE. This will help develop an update to our Private

Sector Renewal Policy and help shape and inform our priorities, strategies, housing needs and provide target areas for the focus of

interventions to improve the housing. The modelling will also provide us with updated baselines so that we can measure success

and changes to our housing stock over the coming years. The council has also commissioned a further 2 years of updates to the

data to help this process. Accurate data will also help Watford continue to successfully make use of ECO and inform policy around

ECO flex.

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Renewables The council is looking at the potential for incorporating renewable technology, such as solar and ground source heat pumps, in

conjunction with district heating options for the proposed new housing developments in Watford, i.e. the new Hart Homes

partnership. As a fast growing borough the new housing accommodation is an opportunity to provide affordable rent through to

energy efficiency and at the same time improving the overall housing stock within the borough.

For more information concerning domestic energy efficiency please contact: environmentalhealth@watford.gov.uk

watford.gov.uk