Internal Affairs for Adactus500 Scrutiny Panel
Scrutiny Review: Energy Efficiency Interim Report The Project “We aim to carry out improvements to properties with a low SAP (energy efficiency) rating to bring their rating up. Our target for average SAP ratings across all of our properties by the end of the year is 79” (Adactus Housing Group Business Plan 2013/14). We missed the target of 79 set by the Board in terms of SAP rating across our stock – at quarter one (2013/14) it was 77.1, and the current average (2014/15) is 78.
What we wanted to know • • • •
Why did we miss our target? Which types of properties were targeted for energy efficiency works? What measures were carried out to achieve the SAP 79 target? What more could have been done to achieve the SAP rating of 79?
What we looked at • • • • • • • •
Setting of the SAP rating How properties were assessed for energy efficiency Accuracy of SAP records How properties with a low SAP rating were identified Improvement programmes to improve energy efficiency Number of improvements completed Availability of energy efficiency advice External funding
What we found 1. SAP • The Standard Assessment Procedure (SAP) is a methodology used to assess and compare the energy and environmental performance of dwellings. It works by assessing how energy efficient a property is. SAP is derived from an energy performance survey and detailed on an Energy Performance Certificate (EPC). In addition as part of the Groups’ stock condition survey the software used provided a SAP rating.
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January 2015
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Internal Affairs for Adactus500 Scrutiny Panel
a. SAP requirement • It is not a mandatory requirement for Registered Social Landlords to produce an EPC for its existing properties however new developments are required to have one. The Group has energy performance surveys done to provide "value" for its assets and to provide prospective tenants with an energy efficiency rating for that property. • Energy performance surveys are carried out by Pennington Choices on properties that become void and not had a survey in the last 10 years. SAP ratings are expressed on a scale of 1 to 100, the higher the number the lower the energy running costs. SAP ratings are registered onto the Group’s property database known as ECMK. b. SAP Development • SAP is continually evolving in respect of the areas that are assessed. The 2001 SAP standards were updated in2005, 2009 and 2012. The 2005 rating has been the one used to date for reporting purposes.. • SAP2009 looks in more detail at party walls, heating and cooling systems, multiple heating and ventilation systems, hot water consumption, heat pumps, innovative technologies, CO2 emission factors, lights, appliances and cooking methods. The effect is an increase in the predicted energy consumption of dwellings that typically reduces the SAP rating by 5-10 points. The Group’s average SAP rating is calculated using a mix of SAP2005 and SAP2009 ratings. c. National Average • The average energy efficiency rating for a dwelling in England and Wales is band D (rating 60). • The Government proposals include improving as many fuel poor homes as reasonably practicable to band E (39-54) by 2020 and band D (55-68) by 2025. 2. The strategy • In 2012 the Group’s strategy was revised to increase the target for average SAP rating of stock from 66 to 77 and then by one point each subsequent year. This increase of 11 points was a result of specific energy efficiency investment programmes and planned maintenance improvement programmes. • The aim of the strategy was to review 400 properties with a below SAP65 rating listed on ECMK. An action plan was produced to carry out where possible; loft insulation, cavity wall insulation, double glazing, and replace boiler with a condensing gas boiler in order to increase the rating to above 65. The intention was not to carry out all these works in one fell swoop but to incorporate them into
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January 2015
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Internal Affairs for Adactus500 Scrutiny Panel
a planned maintenance programme (although it was not established what the timetable was). 3. Stock Profile a. The Database • The ECMK property database contains details of all the Group’s properties. It contains details of 13,216 properties. Records revealed some property types had different descriptions for example a bungalow was also described as HBUN and detached as HDET, therefore increasing the number of categories. It also showed that 4,633 dwellings had not been categorised – the property type had not been completed. b. SAP Records • The SAP data on ECMK was unclear as it contains ratings for SAP2001, SAP2005 and RDSAP2005. RDSAP2005 is the most recent one and contains details of 2,938 dwellings. • The review of the data showed many SAP2001 ratings were cloned, for example if one property in a row of houses had a SAP survey done then that SAP rating was applied to all. Although ECMK showed many properties had a survey date (indicating that a survey had been done) there was no figure (SAP rating) and an energy performance certificate was not available on the EPC register. • A check on SAP2005 data revealed there were gaps in information; of 13,216 properties a SAP rating was not available for 5,958 (45%). • It was learnt that ECMK was to be updated on 10 February 2015 with SAP2009 software (although it is unclear whether all new survey will be carried out or SAP2005 ratings will be converted). a. New properties • The development team updates information pertaining to new properties onto the “New Properties database” (Access) such as; the number of bedrooms, components, heating system, funding received, contractor, date of handover and the property type. It also has a facility to record the SAP rating and the date of the energy performance certificate. Between 1 January and 31 December 2014, 255 new properties became ready to let. A spot check of twenty new development property records for which the SAP ratings ranged between 81 and 89 showed these two fields had not been completed in ten cases (50%). • It was learnt that the SAP rating and certificate date entered in the new properties database is not fed directly into ECMK. The SAP ratings are manually input by staff in Asset Management.
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January 2015
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Internal Affairs for Adactus500 Scrutiny Panel
•
A check was made to determine whether the new properties SAP ratings had been recorded onto ECMK. It revealed that of the twenty properties only two had been logged (10%), the effect of this is the Group’s average stock rating is understated. If these SAP ratings had been updated onto ECMK they would increase the average stock rating.
b. Voids & Lettings • The Voids & Lettings team maintain a separate spreadsheet for SAP surveys for properties they let. They use it to check whether a property has a valid EPC certificate before it is let.. c. Agency, Sheltered & Supported housing •
It was learnt that a SAP survey was not raised for agency managed, sheltered, or supported dwellings.
d. Properties below the Government’s minimum target (Band D, 55-68) •
An analysis of properties with a SAP2005 ratings listed on ECMK (as previously mentioned only 55% of properties are listed) revealed only 86 fell below the Government’s proposed minimum band D. SAP Rating Band 81-91 B 69-80 C 55-68 D 39-54 E 21-38 F 1-20 G Total (5,958 properties do not have a SAP rating on ECMK)
No. of Properties 1,585 4,340 1,247 67 17 2 7,258
4. Improvement Programmes/Energy Action a. •
Actions to improve energy efficiency There are many aspects that can make a difference to a property’s SAP rating. Each improvement can increase the rating and reduce fuel poverty. Below is an example of improvements that can make a difference to a property’s SAP rating: Improvement Condensing Boiler Cavity Insulation
Shehnaz Akhtar
Rating can be improved Estimated Savings by £225+ per year *47 SAP points £134 per year *20 SAP points
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Internal Affairs for Adactus500 Scrutiny Panel
Loft Insulation *10 SAP points Double Glazing *4 SAP points Low Energy Lighting *2 SAP points * Please note that these are only estimates. •
£100-£125 per year £10-£15 per year £33 per year
Although 15% of energy loss is estimated to be lost through external doors, it currently does not form part of the key elements taken into account when assessing the energy efficiency performance of a dwelling; therefore doors are not linked to energy efficiency programmes. The elements assessed in the energy efficiency survey are; walls, roof, floor, windows, heating, heating controls, secondary heating systems, hot water and lighting.
b. Planned programme of works •
•
•
In 2012 a programme of works was created to carry out energy efficiency improvements to 400 properties with a below SAP65 rating. They include loft insulation (increasing from 1500mm to 300mm), cavity wall insulation, double glazing, boiler replacement and full gas central heating. In some cases rendering of properties was carried out for example to properties in Northgate Drive, Abbey Hey. The programme of works could not be reviewed in order to assess the impact of works undertaken to improve energy efficiency and reduce fuel poverty; this information was not available. A review of SAP data on ECMK showed that SAP ratings of properties were not revised following energy efficiency improvement works.
c. 2014/15 action plan • A review of the Asset Management’s action plan dated September 2014 showed 145 properties with a below SAP65 rating. It specified the works required to progress properties to a certain level and the potential energy efficiency rating in addition to the expected efficiency rating after each type of improvement. The plan includes low cost measures such as low energy light for fixed outlets, cylinder insulation, hot water cylinder thermostat, and floor insulation. It was explained that these actions had been incorporated into the 2015/16 planned programme of works. • Records revealed that external doors were not included in the improvement programmes (as mentioned previously). Once a door requires replacing, for example after a break in, it is replaced with a composite one. Research has indicated that composite doors greatly reduce heat loss and noise from outside, more so than UPVC doors. d. Completed Improvements • A review showed that between 1 January and 31 December 2014 the Group
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Internal Affairs for Adactus500 Scrutiny Panel
carried out the following improvements to properties that had a below SAP65 rating: Improvement No. of properties Roof insulation 81 Cavity wall insulation 66 Boiler installation 82 Double glazed windows 217 Full gas central heating 360 * Some properties had more than one improvement carried out 5. Funding/Resource allocation a. Budget • The Asset Management’s 2014-15 planned maintenance budget for energy efficiency improvements is: o Boiler replacements - £170,000 o Loft insulation upgrade - £12,000 o Windows - £600,000 Total £782,000 b. Funding • Many of the energy saving measures have been funded through Central Government funding sources, such as ECO (Energy Company Obligation), Dyson Energy Services and Green Deal. • Funding is volatile, it is not know how much will be available in years to come. 6. What are other housing associations doing? a. SAP targets/energy efficiency improvements • Research shows that many housing associations carry out similar energy efficiency improvements as the Group such as; cavity wall insulation, loft insulation, double glazing and energy efficient boilers. It shows that the target SAP vary between 65 and 88: Housing Associaton
Improvements
Target SAP rating
Sanctuary
Cavity wall insulation, loft insulation, energy efficient boiler, double glazing, solar thermal/PV panels, and water saving device.
82
Passivhaus
Triple glazing
88
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Internal Affairs for Adactus500 Scrutiny Panel
Southway
Teamed up with FORREST and offered free solar panels to 1,000 homes
Not available
Cheshire West
Cavity wall insulation, loft insulation, and energy efficient boilers.
65 by 2015
Stockport Homes
Cavity wall insulation, loft insulation, cladding, condensing boilers, free energy efficient light bulbs and automatic meter reading systems across communal sites.
80 at 2009/10 increasing by 1 each year
Riverside
Cavity wall insulation, loft insulation, double glazing, replacing electric heating with gas central heating, energy advisor on a one-toone basis.
80
b. Comparison of average SAP ratings • SAP ratings cannot be compared between organisations as they all have a very different stock profile which affects their SAP rating as can be evidenced from the reported average SAP ratings in the table below: Housing Association
No of Properties (2013)
2012 reported average SAP (2005) rating
2013 reported average SAP (2005) rating
2014 reported average SAP (2005) rating
529
78.9
79.3
79.6
Contour/Symphony
1,117
71.25
70.3
70.37
Great Places
1,646
68.83
70.66
71.34
Guinness Northern Counties
1030
68.9
69.6
72.47
Housing 21
1,467
87
87
87
550
70
70
70
1,306
67.15
64.6
67.98
(SAP 2009)
(SAP 2009)
Aksa
Places for People Regenda
Villages FCHO
927
70.51
71.43
71.27
11,772
72.3
72.3
73.32
7. Energy advice
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January 2015
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Internal Affairs for Adactus500 Scrutiny Panel
a. Availability of advice • The Group’s website provides general information and tips on how to save energy by taking simple measures such as switching off lights, reducing the thermostat by one degree, and has a comparison service ‘Billscutter’ which compares energy prices from leading energy suppliers based on information supplied. • The Energy Advice booklet contains advice about energy efficiency measures that tenants can take to reduce fuel poverty. This information is also replicated on the website. It was learnt from the Climate Control Manager that the Energy Advice booklet will not be renewed as the information can be printed off directly from the website. • The Climate Change Manager can provide one-to-one energy efficiency advice. She can visit tenants in their homes to make an assessment on how they use energy in relation to energy efficiency and to provide them with advice on how to be more energy efficient such as; considering meters, assessing bills, switch energy supplier for a cheaper tariff, heating homes efficiently, using heating controls effectively, and other low cost measures that tenants can take themselves, for example using energy efficiency light bulbs, timer plugs for chargers, and draught excluders on internal doors. • The contact centre staff report details of energy efficiency referrals to the Climate Control Manager, who will arrange for a home visit with the tenant. A spot check revealed only two referrals had been made between 1 January and 31 December 2014. A further check was carried out to establish if other departments had made energy efficiency referrals in the same period. Four staff (from Tenancy Enforcement & Support, Resident Involvement and Neighbourhood Development teams) confirmed they had not made any referrals. One member of staff was not aware of the process for making referrals or the advice available for tenants.
What we liked: • •
•
•
External funding had been secured and the Group has been investing in systematic improvements of the energy efficiency of its housing stock. As well as capital works to improve the energy efficiency of properties, the Group also provides advice and assistance to their tenants to get out of fuel debt and switch fuel suppliers and tariffs. Most new developments produced an energy efficiency rating between 81 and 89, in some cases reaching its potential (the maximum rating achievable for individual properties). Energy efficiency advice is available on the Adactus website and is featured in the tenant newsletter ‘In-house’.
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January 2015
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Internal Affairs for Adactus500 Scrutiny Panel
• •
Staff training and tenant advice programmes have been developed to provide individual energy efficiency advice. During the scrutiny review ECMK had been updated with SAP2009 software.
What concerned us? • Three processes are used for recording SAP information; ECMK is used by planned maintenance, New Properties database (Access) for new developments, and a spreadsheet by the Voids & Lettings team. The SAP ratings for new developments and void properties and are not fed through to ECMK therefore these ratings are not included in the average SAP rating calculation. • There were gaps in SAP2005 information held on ECMK; ratings were not available for 5,958 dwellings although in most cases a survey had been completed. • Staff were unable to access the action plan for the 2012-15 energy efficiency improvement planned programme of works.
What else could we look at? • • • • •
What type of properties currently have a low SAP rating Review of improvement programmes to determine if they were completed Review of hard to treat homes that cannot be improved with low cost measures Review properties below Government’s proposed minimum to check if the rating is correct or valid. Review of information packs to new tenants – if heating instructions and boiler manuals are provided
Glossary • • • •
ECMK –the database for recording property information. EPC – energy performance certificate produced following an energy efficiency survey. New property Database – used by the Development department to record new properties. SAP – the standard performance procedure used to measure the overall energy efficiency of a home.
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January 2015
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Internal Affairs for Adactus500 Scrutiny Panel
Appendix Staff Interviews The following interviews were carried out with staff: Name Role Date Topics covered interviewed Natalie Climate Control Manager 2/12/14 Energy advice Twomey Staff training Dave Carter
Group Head of Sustainability
16/12/14
Fuel Poverty ECO Funding Carbon reduction Energy efficiency advice Renewable energy Planned Programmes of works: Cavity wall insulation Lost insulation Windows New boilers
Jamie Weston
Former Assistant Director of Asset Management
15/1/15
Stephen Fryer
Planned Programmer
26/1/15
ECMK database SAP calculation SAP software updates
Dave Sweeting
Planned Programme Manager
30/1/15
Improvement programmes Component replacement Budget Funding
Louise Edwards
Development Officer
10/2/15
New developments New properties database SAP ratings
Ryan Hague
Project Officer
13/2/15
Voids & Lettings SAP spreadsheet
Energy Performance Certificate spot check What we wanted to check We wanted to determine whether SAP surveys existed for properties that did not show
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Internal Affairs for Adactus500 Scrutiny Panel
SAP data on ECMK. What we looked at We obtained a report from ECMK (Master SAP spreadsheet) detailing SAP information for all the Group’s properties. We filtered the spreadsheet to show 5,958 properties with no SAP ratings. A sample of 15 properties was selected. A search was made on the EPC Register via the internet using the property post code to determine if the energy performance certificate existed for each property and what the SAP was. The results are as follows: Address Ashdown, Southport Admiral Way, Merseyside Albany Court Aniline Street Barbeck Close, Miles Platting Bednal Close, Miles Platting Bignor St., Manchester Brigstock Ave, Manchester Burnleigh Court, Caloder Ave, Lancashire Canada St. Manchester Chapel St., Chorley Northgate Dr., Chorley Orme Close, Manchester Park Rd., Manchester
Actual SAP rating 73 87 76 85 77 67 48 71 79 73 55 58 59 68 70
SAP rating on ECMK No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown
What this means The database is not up to date. 45% of the Group’s stock does not show a SAP rating although evidence suggest that energy efficiency surveys have been completed and the properties have a high SAP rating.
New properties spot check What we wanted to check We wanted to assess whether the SAP rating of new properties was included in the calculation for the average SAP rating of properties.
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January 2015
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Internal Affairs for Adactus500 Scrutiny Panel
What we looked at We obtained a report detailing all new developments ready to let between 1 January and 31 December 2014. A random sample of 20 properties was selected for testing. The ECP register was accessed to obtain to SAP rating for each property and a check was made on the New Property database in order to establish if the SAP rating was recorded. A search was then made on ECMK to determine if the SAP rating had been updated. The results are as follows: Address
Actual SAP rating per ECP Register
Greenside, Euxton Leeson Avenue Hurst Green Fairclough Place Field Spring Gardens Acres Park Close Croasdale Ave Laurel Ave Almond Drive Lune Road Lune Road Jersey Street Acorn Court Water Meadows Grimshaw Street Sprindlewood Road Whinfell Close Chorley Lane Dallington Avenue New Mill Street
83 82 83 81 82 83 82 83 84 85 84 81 89 83 83 83 87 83 88 85
SAP shown on New property database? x x x X X X X X X
SAP per ECMK
Not shown Not shown Not shown Not shown Not shown 84 82 Not shown Not shown Not shown Not shown Not shown Not shown Not shown Not shown Not shown Not shown Not shown Not shown Not shown
What this means The New Properties database has a facility to allow a SAP rating to be recorded. However, there is no facility to upload this into ECMK; therefore a majority of SAP ratings for new properties is not included in calculating the average SAP rating of properties.
Voids & Lettings spot check What we wanted to check We wanted to determine if the SAP ratings obtained for void properties were updated
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Internal Affairs for Adactus500 Scrutiny Panel
onto ECMK and included in the calculation for the average SAP rating of stock. What we looked at We obtained a report detailing all the SAP ratings obtained for properties by the Voids & Lettings team since 2012. A sample of 10 properties was selected for testing. The EPC register was accessed to obtain to SAP rating for each property and a check was made on ECMK to determine if the SAP rating had been updated. The results are as follows: Address Ayres Road, Manchester Calder Avenue Bollington Road, Miles Platting Liverpool Road, Neston Ullswater Road, Chorley Queensway, Chorley Mellors Close, Southport Eaves Lane, Chorley Chester Place, Chorley Heathfield Drive, Bootle
Actual SAP rating 75 69 77 66 70 61 78 71 68 78
SAP rating per ECMK 78 75 77 62 No rating shown No rating shown No rating shown No rating shown No rating shown No rating shown
What this means This is the third processes for recording SAP rating. As with new developments, there is no facility to upload the SAP ratings of void properties directly into ECMK, therefore a majority of these ratings are not included in calculating the average SAP rating of properties.
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