Post on 30-Mar-2015
ECO - we can help with that!
Claire Harrold, Head of Business DevelopmentGreen Deal and Obligations
• About npower
• The Energy Company Obligation (ECO) and Green Deal
• The cost of ECO & factors that impact this
• Our strategy
• An ideal ECO project
• Accessing ECO funding
• Questions
What we will cover today
• Part of the RWE Group
• A major UK energy company – one of “the Big 6”
• We generate 10% of the electricity used in Great Britain
• We supply electricity and gas to ca 6.5 million customers
• We have 12,000+ employees at UK sites
• Specialist Energy Services Division with a proven track record - successfully discharged our
previous obligations
• npower is committed to the
Government’s Green Deal initiative
and has been an approved
Green Deal Provider since
October 2012
About npower
• npower has already delivered against its Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP) obligations
• Both of these energy efficiency schemes were established by the Government to assist the UK in meeting targets surrounding the reduction of greenhouse gases
• Through CERT we insulated ca.470k cavity walls and 720k lofts
• CESP involved the insulation of ca. 10k solid walls and nearly 2k district heating schemes
Clacton Case studyClacton, Essex is a former holiday-resort, now in decline.Our work in the area targeted the most deprived homes.
Key facts – it makes a difference!• 53 homes treated (under CERT) in late 2012• External Wall Insulation installed as primary measure• Delivered homeowners bill savings of up to £475 annually• c. 6k t/CO2 saved
Our Energy Efficiency Expertise
Before
After
Average home heat loss Reduce energy use throughWhat is ECO?
ECO = Energy Company Obligation (replaces the “CERT” and “CESP” schemes)
As one of ‘the Big Six’ energy providers, it’s the new legal obligation we’re under which will help drive energy efficiency improvements in qualifying homes across England, Scotland and Wales. Npower need to fully or partly fund c. 150k compliant energy efficiency improvements by March 2015.
The Green Deal works alongside ECO to provide energy saving & renewable energy improvements to householders who don’t qualify for ECO, with no upfront cost.
The Obligation
ECO is split into three individual obligations:
• Home Heating Cost Reduction Obligation (HHCRO)
Supporting vulnerable private householders on qualifying benefits
• Carbon Saving Community Obligation (CSCO) & Rural sub-obligation
Helping people living in pre-defined areas of deprivation and rural locations
• Carbon Emissions Reduction Obligation (CERO)
Making funding available for energy-saving improvements that would not otherwise qualify for Green Deal
The ECO and Green Deal Relationship
HHCRO Who will we be helping?Vulnerable and low income households in private tenure
Customer share of cost:Assumes that no cost is paid by the customer.
Measures: Heating and insulation
Bear in mind: identification, trust, tenancy
CERO Who will we be helping? People in hard-to-treat properties, including social housing.
Customer share of cost:Customer takes Green Deal funding for part of the cost.
Measures: Insulation and secondary measures
Bear in mind: property types; consumer needs; planning; timing
CSCO Who will we be helping? People in deprived areas and rural circumstances.
Customer share of cost:Assumes that no cost is paid by the customer.
Measures: Insulation, district heating
Bear in mind: make projects accessible to all; know your stock; power of WOM; timelines
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• State Pension Credit
• State Pension Credit
• Child Tax Credits anda household income of less than £15,860
• Child Tax Credits anda household income of less than £15,860
• Income-related employment and support allowance
• Income-related employment and support allowance
• Working Tax Credit and a relevant income of £15,860 or less
• Working Tax Credit and a relevant income of £15,860 or less
• Income Support
OR income-based job seeker’s allowance
• Income Support
OR income-based job seeker’s allowance
• Plus a qualifying component
We can help homeownersand private tenants who are receiving:
• Plus a qualifying component
• Plus a qualifying component
• The aim is to provide fully funded energy saving improvements to eligible householders so that they can affordably heat their homes
• We’re focusing on the replacement or repair of inefficient boilers
• If appropriate loft and cavity wall insulation can also be installed
Home Heating Cost Reduction Obligation
HHCROHHCRO
Carbon Saving Communities Obligation
INSULATION IMPROVEMENTS IN DEPRIVED AREAS
The objective is to save energy by improving insulation (preventing heat loss and reducing energy needed to heat the home)
•Helps people who are living in pre-defined areas of deprivation (based on Index of Multiple Deprivation)
•Sub-obligation: 15% of the target has to be delivered in low income RURAL homes
•Also includes connection to a District Heating (i.e. communal) system – appropriate for flats & apartments
INSULATION IMPROVEMENTS IN DEPRIVED AREAS
The objective is to save energy by improving insulation (preventing heat loss and reducing energy needed to heat the home)
•Helps people who are living in pre-defined areas of deprivation (based on Index of Multiple Deprivation)
•Sub-obligation: 15% of the target has to be delivered in low income RURAL homes
•Also includes connection to a District Heating (i.e. communal) system – appropriate for flats & apartments
CSCOCSCO
‘HARD TO TREAT’ HOMES
The emphasis is on improving the insulation of ‘hard to treat’ properties (usually due to type of construction and age)
• Improving insulation in ‘hard to treat’ cavity walls
• Offering solid wall insulation
• Connection to district heating system
• Fully funded by npower or partly funded as part of a
Green Deal plan
‘HARD TO TREAT’ HOMES
The emphasis is on improving the insulation of ‘hard to treat’ properties (usually due to type of construction and age)
• Improving insulation in ‘hard to treat’ cavity walls
• Offering solid wall insulation
• Connection to district heating system
• Fully funded by npower or partly funded as part of a
Green Deal plan
Carbon Emissions Reduction Obligation
CEROCERO
• DECC Impact Assessment
• £1.3bn per annum: DECC estimate a cost of £400m to npower
• £55 per household energy bill per annum
• Industry estimates are costs could be double that
• Knock on effect on bills
• More people could be tipped into fuel poverty
• Responsibility to keep costs down
The Cost of ECO
Mix of measures
Cost to aquire
Matchfunding/customercontributions
• Experience from achieving previous Obligations
• Brokerage *NEW*
• Partners
• Marketing/lead generation companies
• npower own marketing/Green Deal Provider activity *NEW
• Flexible – adaptable – innovative
npower’s ECO and Green Deal Strategy
VA
LU
E D
RIV
ER
S
CONVENIENCE AFFORDABILITY TRUSTEASE
“Make the process as quick and as painless
as possible”
“Minimise the disruption in my life and home, help
make it a less painful
experience”
It must not cost me
anymore and hopefully saves me money”
“Treat me like an individual, be honest, do not hard sell and help me through the
process”
VA
LU
E
PR
OP
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energy saving made
easier
• Ideally, but not necessarily, previous experience of obligations
• Current knowledge of the housing stock
• Knowledge of residents and their needs
• Combining initiatives with innovative community centred projects
• Working closely in partnership and with planners
• Using proven communication channels
• Willing to combine a variety of funding sources
A good local partner
• Measures must be compliant with the Ofgem guidance
Rules about:
• Types of projects
• Types of beneficiaries
• Evidence
• Measures
• Technical rules
• Timelines
• Reporting
• We can help with that!
And, always mindful of the Ofgem Guidance!
• Know the people, their needs and their houses
• Provide proof of CSCO areas where relevant
• Take responsibility for lead generation/assessor access
• Mix measures to improve cost effectiveness of scheme (solid wall properties only are less likely to be attractive)
• Bring planners in early
• Provide an assessment of expected carbon savings (and methodology used)
• Provide estimated costs
• Be innovative and source a combination of funding
sources and/or delivery strategies
• Take communication seriously
A good ECO Project
Thank you
Any Questions ?
Claire.Harrold@npower.com