Each Home Counts. 12 July 2017
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1 Each Home Counts 12 July
2 Welcome Howard Porter Chair, Each Home Counts 2
3 Agenda 13:00 Welcome and introductions 13:10 Implementation vision and Government view Market drivers for the Review Quality Envelope Break Each Home Counts website Future implementation and the manufacturing industry Summary and next steps Close 3
4 Implementation Vision Howard Porter Chair, Each Home Counts 4
5 Each Home Counts Vision Implementation of Each Home Counts recommendations key to address challenges across which led to the Review being commissioned Also has a big role to play to meet future challenges across energy efficiency and renewable sectors including Managing energy costs Moving to a lower carbon economy Providing a professional services for all householders Providing a basis for vibrant manufacturing and installation industries Implementation will draw on established sectors should be exemplars to encourage less established, and new technology sectors need to develop and adopt best practice. Implementation helps to establish a long term and sustainable residential sector 5
6 Each Home Counts Vision Consumers need to have confidence that the measures offered and installed in their homes: Are fully complaint with appropriate quality standards Are aligned with relevant compliance schemes Are appropriate for their needs and their property Technologies in residential buildings are increasing in complexity and need to be introduced in alignment with the EHC recommendations: Hybrid and alternative fuel heating Integrated heating solutions Smart metering Renewable technologies Electric vehicles Smart heating controls, lighting etc Innovative insulation solutions Connected homes 6
7 Each Home Counts Vision Since the launch of the Review report in February the Implementation Board has been active in working with stakeholders to develop plans for each of the recommendations Today we are presenting a summary of progress to date There is more to do and we welcome your engagement on this today and moving forward The Board is keen to maintain momentum Aim to deliver key aspects of the proposed Quality Envelope as we move into 2018 This is a real opportunity of all of us in industry to demonstrate how me can work together to drive progress 7
8 Government View Ben Golding Deputy Director, Home and Local Energy, BEIS 8
9 Market Drivers 9
10 Market Drivers Finance and Insurance Stephen Huller Director of Home Improvement, BNP Paribas Personal Finance 10
11 Executive summary The Home Improvement and Energy Efficiency and Renewables markets are being funded presently in volume. Question, is it in the right volumes and accessible enough? Do funders and insurers fully understand the market? Close collaboration would allow this to change, leading to better solutions for all. Quality will be a differentiator and rewarded. Meeting & exceeding consumer expectations deserves support. 11
12 How the Each Home Counts Review can help Funder and Insurer interests are very closely aligned to that of the consumer. Identifying quality would present a benefit if it led to product delivery/innovation. Consumers knowing what they can expect & then getting it, reduces funder and insurer risk. Funders and insurers are reserved, working together will lead to better outcomes. Developing a market which works for consumers and funders/insurers is one which is sustainable and scalable. 12
13 Thanks and enjoy the session Some of the contributors to date.. 13
14 Market Drivers Social Housing Chair on behalf of Bevan Jones Managing Director, Sustainable Homes 14
15 Social Housing Workstream Social Housing offers a unique opportunity to deliver effective energy efficiency programmes at scale. Knowledge of stock, understanding of customer behaviour, track record of innovation and established partnerships with industry, government and service providers. Sector has gone under huge change in the last 2 years and has moved beyond managing just social housing to a build and manage model across all tenures this has real implications as increasing focus on commerciality regardless of tenure mix. Uncertain policy landscape around low carbon retrofit. 15
16 Market requirements Focus on best practice standards will be particularly useful for social housing providers to procure energy improvement works. Costs should be kept reasonable where possible to encourage adoption in the sector. A stronger inspection regime and a common process for checking quality is needed. The Code of Conduct should support open and transparent communication between housing associations and contractors and provide clear guidelines around communications with tenants. Any new codes and standards should align with existing contract models. A system of redress for consumers should be aligned with existing provision for social housing tenants. Policy certainty and stability for defined periods. 16
17 Market Drivers Energy Company Obligation Andrej Miller, Head of Supplier Obligations,BEIS 17
18 Overview Since January 2013: ECO has delivered around 2.1 million measures in around 1.7 million homes around 96% of installations under Government policy during that time 35% cavity wall insulation 24% loft insulation 23% replacement boiler 7% solid wall insulation Since April, estimated spending of 640m per year with greater focus on fuel poverty Limiting the number of gas boiler replacements want more insulation Solid wall minimum of 21,000 per year Estimate that 500,000 homes will be insulated from April 2017 to September
19 What does ECO want from EHC? Context: New scheme from October 2018 at 640m per annum (2017 prices) Intention to incorporate new EHC standards and practices into future ECO ECO wish list: Quality Mark consistent framework that can be referred to in legislation Data sharing enabled between certification bodies and Government schemes identify poor quality work and installers Standards must be at least equivalent to PAS2030 Consumer protection to include risks with guarantees e.g. liquidation Ideally replace technical monitoring statistically significant monitoring Dedicated energy efficiency advice and customer satisfaction gathering Powers to take action against installers and certification bodies if standards are not met 19
20 Indicative future ECO timeline We are seeking views from Ministers on the high level design of ECO from 2018 An indicative timeline for development and implementation of a future scheme is: - Summer 2017 Ministerial agreement on ECO scheme - Autumn 2017 detailed development of the scheme; we will continue to discuss ongoing policy design with key stakeholders - January to February 2018 ECO3 consultation published (would need clarity on EHC standards at this point) - March 2018 analysis of consultation responses and drafting of regulations (would need all standards to be final and published) - May 2018 consultation response published with final Impact Assessment - July 2018 Parliament debates regulations - October 2018 scheme begins 20
21 Quality Envelope 21
22 Quality Envelope Quality mark Simon Ayers 22
23 Quality mark model Key and consistent feedback of factors through discussions have been: Do not layer more cost and develop routes for access by existing schemes Ensure that effective governance is delivered and the mark delivers quality and consistency and is measured The mark must have some teeth and enforce the requirements of its code of practice Any mark must have a transition period for existing schemes to meet the requirements A common approach to the requirements for accreditation and business certification is to be used Look to use an existing mark and do not bring yet another new body into the market place The mark must have sufficient start-up funding and supported to establish a longer term sustainable delivery model 23
24 Quality mark model 24
25 Quality mark governance Board structure option based on best practice for the delivery of the quality mark via the Board structure. Not for Profit / social enterprise business Independent Board Chairman Figure Head / Public Image Independent Board Directors Independent Board Director Independent Board Director Independent Board Director Articles of Association Advisor and Observer roles will not have voting rights but will present business cases / advice for consideration Industry / Consumer Council Quality Mark The Council will be formed and all parties will become members of the organisation with single voting rights per organisation. It is envisaged that this will have multiple bodies and look to ensure that all sectors are represented from both the industry and consumer sectors. Governance support and planning functions Information and delivery of feedback and challenges Deliver strategy of Board Effective delivery 25
26 Quality mark delivery Key delivery aspects: Audit and Compliance Small audit team providing ongoing compliance support along with managing non-compliance, driving quality and standards is the focus Marketing and PR Provide a structured and sustainable marketing and PR delivery to allow achievement of a self sustainable mark Customer facing services Support Scheme Providers, Businesses and consumers with effective and efficient services Board (Governance) support Provide support to the Board (and other processes) for effective Governance and delivery of the scheme Enforcement via Trading Standards and LABC Use embedded TS and LABC team to enforce the areas of the mark 26
27 Quality mark transition Developing a transition process Quality Mark Requirements Code of Practice Quality Management system UKAS Accreditation Build a transition period for schemes taking into account: Current achievements UKAS status Quality management system What audit regime is required based upon gap analysis 3 / 6 / 12 month requirements Time to achieve transition 27
28 Quality Envelope Code of Conduct and Consumer Protection Liz Male 28
29 Code of Conduct and Consumer Charter Not a single code to replace all others but a benchmark Informed by existing good practice Applies to businesses How they communicate & deal with the customer How they prove to their certifying body that they meet the EHC requirements Designed to give confidence to those funding and receiving the work Proportionate consumer protection Works within existing legal frameworks not to interpret, replace or restrict the law Practical to monitor, audit and enforce Consumer Charter - the customer s rights and responsibilities (based on the Code) 29
30 Record keeping & reporting Professional integrity Business basics Financial protection Marketing & publicity Complaints handling & dispute resolution Code of Conduct Lead generation Customer service Assessment & design Handover & commissioning Contracts Installation Subcontracts / third parties 30
31 Quality Envelope Standards Clare Price 31
32 Standards workstream update Establish a Retrofit Standards Task Group Copyright 2015 BSI. All rights reserved. 32
33 Research Project Identification Evaluation Gap analysis Formal and informal retrofit standards (technical characteristics and processes), technical and competencybased, for end-users across the whole process Final report due end July 2017 British Standard Code of Practice for Retrofit of Buildings End to end framework referencing formal and informal standards Drafting from Autumn 2017 Roadmap of standards development New British Standards or Revisions Other standards MCS, BBA etc Digital service Copyright 2015 BSI. All rights reserved. Searchable Directory Fully accessible Free to end user 33
34 Quality Envelope Skills and Training Ben Lever 34
35 Recommendation: Improve the way in which businesses are assessed for competence Key planned actions: Competency standards, relevant qualifications and training to be reviewed by industry against the requirements of the Each Home Counts Quality Envelope (Retrofit Standards / Code of Practice and Code of Conduct). In August the Construction Industry Training Board (CITB) will launch an employer funding commission on reducing rework in construction. Construction employers (including those in the energy efficiency and renewable sectors) are encouraged to develop skills proposals that reduce rework and increase training in the sector. 35
36 Recommendation: Embed core knowledge, including basic building physics, design stage and consumer interaction into all relevant vocational and professional pathways. Progress to date: We have worked with the Green Construction Board (GCB) to produce the Sustainable Building Training Guide. GCB now leading a structured programme of dissemination to embed the Learning Outcomes in the Guide into training, qualifications and apprenticeships. 36
37 Quality Envelope Information Hub and Data Warehouse Susan Jones and Philip Sellwood 37
38 38
39 Data Warehouse Existing data sets Data Warehouse Informed advice tools for householder Installed data to help compliance and monitoring Existing data to better inform future designs and installations 39
40 Quality Envelope Compliance and Enforcement Claire Curtis-Thomas 40
41 Recommendation 16 - Our starting point Put in place a robust and joined-up industry-wide compliance and enforcement regime coordinated nationally; share information on the quality of assessors, designers and installers to facilitate the identification and sanctioning of poor practice, as necessary; and review and align the frequency of, and mechanism for performing, technical monitoring or on-site audits, possibly introducing a random audit and riskbased approach (where the monitoring frequency is increased when poor quality installations are detected) 41
42 Work group meeting 11 July with industry representatives including Trade Associations BSI, OFGEM, BEIS, Certification Bodies, TrustMark, Gemserve, RECC, Learned Bodies Expectations of the enforcement and compliance function should be certification bodies: Pros: Makes the most of existing architecture Cons: May encourage hopping activities as company searches out easiest route to approval Plethora of certification bodies with different assessment regimes is a challenge 42
43 Strategies for coping with the compliance and enforcement requirements of different sectors Acknowledgement that not all activities are covered by existing provision Requirement mapping exercise to identify gaps and to assess existing provision Agreeing common report format Condition of acceptance as an EHC approved company will be to agree to share data Examining the delivery mechanism for proposed activities Need to develop a specification for the function which includes the following activities Research Collaboration Performance Improvement Audit Enforcement Cost implications associated with the function and identifying potential cost savings Form needs to follow agreed function Need to more fully analyse existing costs to industry and determine costs of function 43
44 Question & Answer Panel Session 44
45 Tea & Coffee Break 45
46 Website Update Ana Paun 46
47 47
48 Future Implementation and Manufacturing Industry 48
49 Future Implementation and Manufacturing Industry Home Energy Technologies and Renewables Kelly Butler 49
50 Technology Scope A Mix of The Old & The New Heating & Ventilation Renewables Energy Storage Connected Homes Lighting 50
51 Each Home Counts Compatibility Review Conclusions Avoid Duplication and high cost No one size fits all for PAS2030 Market surveillance critical Passport schemes Level playing field objective Differentiate Quality Envelope Tackle misselling Don t reinvent the Information Hub Augment current information Fill the skills gap Fill the standards gap Crosscutting projects (ventilation & insulation) 51
52 Future Implementation and Manufacturing Industry Fabric and Insulation Duncan King 52
53 Building Fabric Technology Sector Recommendations: Recommendation 17: - Design stage Holistic approach Key to selection of appropriate measures Recommendation 18: - Information gathering Design specification Storage of data for future use Recommendation 19: - Peer reviewed information fed back to standards & quality control workstream 53
54 Future Implementation and Manufacturing Industry Smart Meters Audrey Gallacher 54
55 The Smart Meters recommendations A once in a generation opportunity to engage with the entire customer base on energy efficiency Recommendation 20: Provide tailored home energy efficiency advice to consumers during the smart meter installation visit, and ensure key delivery partners work together to deliver a good customer journey throughout the roll-out. Recommendation 21: Industry should work together to ensure that the capacity and skills of smart meter installers deliver a safe and efficient roll-out. Recommendation 22: Industry should work together effectively to ensure that smart meters can be installed in as many properties as possible, regardless of property type. 55
56 The implementation plan for Smart Meters The smart meter implementation programme governance arrangements - coordination, address gaps and avoid duplication Connection across stakeholders - Smart Meter Implementation Code of Practice (SMICoP), EUA Skills/NSAP working groups, Citizens Advice and the Ombudsman Services: Energy Identify and agreeing milestones for key activities and outputs Energy efficiency and SMICoP SMOG initiatives on H&S, training and accreditation, difficult install communications solutions Ongoing feedback and reporting 56
57 Future Implementation and Manufacturing Industry Measurement, Monitoring and Verification Kerry Mashford 57
58 Measurement, Monitoring & Verification Ensure and verify that home improvements deliver and sustain intended outcomes Provide basis for better informed: Advice and guidance/performance promises Remedial actions/redress Design/modelling/delivery to better predict/achieve outcomes Progressive and long term planned improvement for individual properties Enable meta-data analysis to track overall improvements in building energy and CO 2 emissions across the domestic building stock Enable financial, carbon and social return on investment to be assessed, predicted and guaranteed 58
59 Progress & Next Steps Open workshop held 1 st June (What? When? How?) Established Core working group & wider consultation group Core Working Group met 7 th July Confirmed overall scope and objectives Set initial work plan - mapping intersection with other workstreams (5 weeks) collating knowledge of existing practices in UK and internationally (mostly Europe) Second Core WG session 18 th August Work towards presenting draft approach(es) by end Sept
60 Question & Answer Panel Session 60
61 Summary and Next Steps Howard Porter Chair, Each Home Counts 61
62 Thank You For further information please visit 62
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