Yorkshire & Humber Fuel Poverty Forum 30 th November 2018 – Huntington, Yorks Diane Bland – Project Development Co-ordinator
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Yorkshire & Humber Fuel Poverty Forum30th November 2018 – Huntington, Yorks
Diane Bland – Project Development Co-ordinator
Policy Briefing (Autumn 2018)
Matt Copeland – Policy Manager
What is happening in the vulnerability space?
• The Commission for Customers in Vulnerable Circumstances making progress to define the needs of and extend support to customers in vulnerable situations
• An upcoming update to Ofgem’s Vulnerability Strategy due for consultation shortly
• Planned review of the Pre-Payment Meter cap next year• Strengthened vulnerability principles which now require energy companies
large or small to identify and respond appropriately to their customers’ enhanced needs
• Changes to warrant charges for vulnerable energy consumers • Enhanced partnership working with network companies and energy suppliers
to improve the Priority Services Register (PSR)• Ofgem seeking to improve performance from suppliers to identify, respond to
and prevent vulnerable consumers from falling into further debt • New protections for consumers who receive back bills• The 2020 smart meter rollout deadline approaching
Major Developments in the Last Quarter
Price Caps
Energy Company Obligation ECO 3
Private Rented Sector
National Infrastructure Committee (NIC)
National Infrastructure Assessment (NIA)
Price Caps
Lots of great information at https://www.ofgem.gov.uk/energy-price-caps/energy-price-cap-
resources/energy-price-caps-resources-library#block-views-publications-and-updates-block
Price Caps – What it means for vulnerable customers
1Because the default tariff accounts for some costs that the safeguard tariff does not(such as smart metering costs), we expect it to rise at a quicker pace.
Price Caps provide a fairer deal, but not a ‘good’ deal. The best deals are likely to be found through switching to fixed deals.
Protects Standard Variable Tariff (SVT) customers from unfair prise rises
Average £70 saving for SVT customers
Incentive for suppliers to become more efficient
Moves Warm Home Discount (WHD) recipients from the safeguard tariff to the default cap. Limited initial price difference.
NEA Calling for 3 Policy Changes
Warm Home Discount
• The £140 rebate under Warm Home Discount scheme must continue for existing low-income pensioner recipients and be provided automatically to more low income working families, using powers under the Digital Economy Act to ensure better targeting.
Fuel Direct
• Ofgem should investigate the setting of and recovery of costs within Fuel Direct repayments and standing charges to ensure low income consumers that may only top up their pre-payment meters rarely, don’t lose credit before they can access any energy.
Prepayment (PPM) Cap
• If the Government choose to extend the current smart meter deadline, it must also work with the Competition Markets Authority (CMA) to investigate an extension to the Pre-Payment Meter price cap (regardless of how many SMETS 2 PPM meters are deployed before 2020).
ECO 3 – Changes to Scheme
Scheme now is exclusively for the affordable warmth segment.
Targeting
Suppliers required to meet 15% of their obligation through in rural areas. A minimum of 17,000 solid walled homes must be treated every year
Rural
Suppliers can now use LA flex to meet 25% of their obligation
Local Authority Flex
Up to 10% of a supplier’s obligation can be met through innovation.
Innovation
ECO 3 will allow limited oil boiler delivery to take place within the broken heating system cap
Oil
Landlords with EPC F/G properties will not be able to access ECO apart for some large measures.
Private Rental Sector
Thresholds for supplier participation will decrease from 250,000 accounts to 150,000 in a phased approach
Obligation Thresholds
National Infrastructure Assessment
• NIC have published their NIA
• Recommendations around domestic homes include:– Setting a target of improving 21,000
measures/week by 2020
– Allocating £3.8bn to spend on upgrading social housing
– Trial innovative approaches to energy efficiency
– Tighten PRS regulations
Next years comprehensive spending review gives an excellent opportunity for the government to legislate for such infrastructure spending.
NEA will be making the case for this.
What’s coming up?
Consultation on the future
of WHD scheme
Network regulation
review (RIIO-2)
Comprehensive spending
review2018 2019
Warm and Safe Homes Awards
A grant of up to £500 for agencies delivering activities in urban areas
A grant of up to £1,000 for agencies delivering activities in rural areas
CLOSING DATE 5.00PM ON 7 December 2018
https://www.nea.org.uk/campaigns-policy/wash-2018/wash-awards-2018/
The campaign runs from Wednesday 28th November (21st November in Wales) to Fuel Poverty Awareness Day on Friday 15 February 2019.
Online Fuel Poverty Resource
An online resource hub with all you need to deliver community fuel poverty activities / events.
Free to download resources such as;
• Posters, presentations, games, templates, leaflets and much more
• Handy ‘Starter Kits’ to make getting started easier
• Regular ‘Focus On’ articles to keep you up to date on current topics/issues
• Examples of good practice from around the country
• News and bulletins from NEA
Developed by NEA with support from British Gas.
Smarter Energy and Vulnerability
Chris DenmanBusiness Liaison Officer
One of Britain’s FASTEST growing independent Gas & Electricity suppliers
We specialise in smart meter
technology
First in the UK to install Smart Meters
Over 680,000 customers on supply
Around 90% of our customers have
smart meters already installed
96% are Pay As You Go (PAYG)
How does Utilita Identify vulnerable customers?
Training
Communication
Engineer Visits
Face to Face
Focus Groups
Signposting
Extra Care Team
Energy Efficiency Advice
PSR Register
PSR Off Supply Report
Friendly credit
To Minimise loss of power Family Credit will maintain supply if you run out of credit during the hours of 2pm and 10am
Gives you control and peace of mind
Full Evening and Weekend Coverage including Bank Holidays
Further information can be found on our YouTube channel at: https://youtu.be/o7B8ZTE7sV0
Emergency credit
Access to £15 emergency credit Per Fuel
Helps Minimise loss of supply when you need it most
No time limit involved
The Power of Self-ServiceAt your Finger Tips
More than just an energy supplier
Only Energy Supplier on the High Street
Heart of the Community
Face to Face Interaction
Family Friendly
Everyone Welcome
Plans to roll out ten more stores across the country POWER TO THE HIGH STREET Energy firm
is set to regenerate the UK high street with stores across the country.In-store customers will get energy advice, top-up their meters and talk to staff face-to-face. There is even an area for the kids.
WARM HOME DISCOUNT SCHEME
2018/19
Core Group 17/18 16,500 18/19 20,000
Broader Group 17/18 20,000 18/19 30,000
Communicated via letter, on-line videos, IHD text and verbal communication
38,745 Customer applied for Broader Group in one week
All applicants notified of the result of their application by end of October
Offering our customers the option to switch if unsuccessful with us
Award winning service
Which? Top five energy supplier for customer
service
uSwitch Best App 2018
uSwitch Best Smart Meter Experience 2018
uSwitch Runner-up for Best Energy Saving
Support 2018
uSwitch Top Six Customer Satisfaction 2018
South Coast Business Award winner 2018
Thank you for listening!
PPM Self-Disconnection Workshop
Matt Copeland – Policy Manager
Self-Disconnection Call for Evidence
• Ofgem are running a call for evidence to support their work on self-disconnection
• The purpose is to understand the scale of the problem, so that they can understand how valuable the solutions are
• We want your views to feed in to our response
Broadacres Housing Association
Helen Ball, Environmental Officer
Warm Homes Funding
Our properties –heating
(Reconciled stock)275 properties
have storage heaters
292 properties have ASHP
260 properties have Oil
60 properties have solid fuel
40 properties have LPG
‘Off-gas’ properties
4577 properties have gas heating (plus homes in blocks with communal boilers)
359 properties have other forms of heating (storage heaters & solid fuel)
‘On-gas’ properties
Most of these properties are having gas central heating
installed over the next three years through
the Warm Homes funded programme.
Homes in rural areas
with no access to mains gas.
Homes in urban areas where mains
gas is available.
Our properties - SAP
Average SAP
70.27
2267 properties with EPC band D, E
and F
Broadacres’ customers
Fuel prices will continue to rise in coming years. We need to invest in our homes to ensure that our customers can afford to live in them comfortably now and in the future.
• Rent
• Food
• Gas and electricity
With Universal Credit our tenants will have to decide themselves whether they spend their income on:
Customers have told us in the biannual STAR survey that
‘making sure homes are warmer and more
energy efficient’ is the top priority that they would like us to
consider.
I can just never seem to
get my home warm
enough. It’s really cold by
tea time so I just go to bed
to keep warm.
(STAR survey)
The heating in my
home is inadequate,
antiquated and
extremely expensive to
use… I can only afford
to heat one room in my
entire house.
(STAR survey)
Our home is very cold in
winter, the windows are
draughty and the heating
is useless.
(STAR survey)
It would be lovely if
your older
homes…were
checked for keeping
heating in through the
winter. (STAR survey)
Mental health problems,
isolation, loneliness…
Not being able to
use all rooms in the
home…
Condensation and
mould in
un-heated rooms…
Physical health
complaints such as
respiratory and cardio-
vascular complaints and
stroke…
Our properties –insulation &
thermal efficiency
Prioritise a “Fabric First”
approach to new build and retrofit
Warm Homes Fund round 2
Category 1 – applied to deliver 323 gas central heating systems
Category 2 – applied to deliver 180 ASHPs
We received £860,969 in funding for 323 gas central heating installations over the next three years.
We have procured E.ON to deliver the works.
E.ON work with High Aims Ltd to obtain additional funding through the Fuel Poor Gas Network Connection Fund.
High Aims Ltd are completing eligibility questionnaires with customers to match against the local authority Eco Flex statements.
E.ON are carrying out EPCs, as E, F and G rated properties are automatically eligible.
We are aiming to start the gas mains extension work in January / February next year.
The central heating work will follow on afterwards.
We are also looking to undertake thermal efficiency work at the same time where budgets permit, e.g. doors and windows and insulation work. E.ON can access ECO funding for E, F and G rated properties to assist with this.
Any Questions?
Reducing fuel poverty through better void management
An overview of Energy Angels work with registered social landlords – Leigh Fairbrother, Sales & Marketing Director
Background
Energy Angels have been working with registered social landlords (RSL’s) across the UK to provide void property energy management and tenant switching services since 2009.
Energy Angels services have been specifically developed to help reduce landlord overheads directly and indirectly by an estimated £5m. Additionally over this period Energy Angels have also helped over 140,000 households save an estimated £20m on their gas and electricity bills, helping to make tenancies more sustainable and addressing fuel poverty.
We help organisations and their tenants to save time, money and effort through the better management of energy and utilities during the void process and at move in.
The pitfalls of utility management
On average only 15% of UK households switch energy supplier each year. A 2016 CMA (Competitions and Market Authority) survey concluded as many as 56% of households have NEVER switched energy supplier. The survey also highlighted that vulnerable customers, those on low incomes, people renting, and those over 65 (typicall social housing tenants groups) are half as likely to have switched supplier in the past 12 months than the general population.
If a new tenant moves into a property having never dealt with an energy company or switched energy supplier before, do we expect them to know what to do?
What can go wrong?• Forget to register• Missing meter readings• Inherit debt• Inherit someone else’s choice (or default) SVT• Discover metering issues, or no supply
Void energy management and tenant switching services
The majority of housing providers therefore use some form of external void energy management service. These services bring a number of benefits to landlords, staff and their tenants. Priorities vary depending on the size of the organisation, however the top three things housing providers tell us they look for in a service are;
1. Ensuring prompt turnaround of a void property to get it ready to re-let
2. Clearing down debt from the meters3. Price competitiveness of the energy tariffs the void /
new tenant would be placed on
The key features of Energy Angels services are;
1. An 4 Hour SLA for power on in a property2. Providing RTI codes from ALL suppliers to clear down
debt in 4 hours or less3. An Ofgem accredited energy switching service for
tenants
What have we achieved?
Currently Energy Angels provide services to nearly 40 landlords with over 230,000properties.
In 2017 we helped our clients clear down debts in over 2500 properties and completed over 14,000 hours of work for free on their behalf. We estimate that saved landlords who use our services over £200,000 in direct labour costs and over £75,000 in standing charges during the void period alone.
We also helped over 6500 homes switch energy supplier to a cheaper than ‘big six’ tariff and helped households save an estimated £500,000 on their energy bills without tenants having to do anything.
Through our partnership with Utilita Energy we also installed over 3000 smart meters in over 1600 homes for free.
TestimonialsHere are some comments from our clients and customer;
“Energy Angels have helped us to reduce our average void turnaround time from 26 days in 2016, to 15.2 days by October 2017… because of Energy Angels we don’t have to worry at all about energy, about finding suppliers, about clearing debts…” – Tina Bull, Head of Housing, Arhag Housing – Speaking at HOMES 2017.
“Thank you so much for your help today. You have gone above and beyond to help our tenant, and sorted out a stressful situation for him. He is clear what he needs to do if there are further issues. Thank you for arranging the extra credit to the meter as well. He is very grateful…” – Housing Officer, Gloucester City Homes
“Very impressed overall especially with how quick you are able to get companies out, such as British Gas, to properties when we have issues with the electric meter, I’m sure if that was something we contacted them over we would have to wait 2 weeks, so that has been a huge help!”
“The Energy Angels service ensures our tenants start their journey with us on the cheapest energy tariff which gives them more disposable income and a better chance of sustaining their tenancy…”
“A number of our tenants had not switched their energy supplier for years and were shocked to find out how much money they could save. I couldn’t recommend them highly enough, every landlord should use them…” – Jonathan Graham, Income Manager, Castles and Coasts Housing Association.
Questions?
Leigh FairbrotherSales & Marketing Director
07810 518 473 / 01905 585 500@LRFairbrother
Minimum Energy Efficiency Standards (MEES) in the Private Rented Sector - Workshop
Matt Copeland – NEA Policy Manager
Link with Minimum Energy Efficiency Standards (MEES)
• Last year, government consulted on changes to MEES in the private rental sector and has now announced a final decision.
• The main decisions are:
– To remove the ‘no cost to the landlord’ principle
– To implement a cap (set at @ £3.5k) on the required contribution when upgrading an EPC F or G rated property to EPC E.
Landlords of F/G properties will not have access to small ECO measures , so £3.5k may not go far enough for many households.
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