Elmhurst Energy Matters Autumn by Elmhurst Energy

ENERGY MATTERS

AUTUMN 2016

Energy Matters / Autumn 2016

FOREWORD MARTYN REED

Welcome to the autumn edition of Energy Matters, Elmhurst Energy’s magazine for everyone involved with energy assessment and energy efficiency.

eflecting back on events since the last edition gave me the opportunity to digest the rate of change in our industry. The last edition of Energy Matters was published a week before the EU Referendum and you may remember that whilst we considered it inappropriate to promote any one view, for or against, we were vocal in explaining the positive impact that we believed the EU had delivered on energy efficiency in the UK. When the result was announced on June 24th it was a surprise but we soon realised that there was little point in moaning, instead we needed to look to the future and put ourselves in the position of our energy assessor members. To create some clarity and stability we;

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Energy Matters / Autumn 2016

• wrote to 2,500 estate agents across the country explaining that irrespective of the referendum result it was still a legal requirement to provide an EPC • wrote to the two new Ministers (Sajid Javid in DCLG and Greg Clark in BEIS) explaining the importance of energy assessment and requesting a meeting to promote EPCs • wrote to the Government departments of DCLG (E&W) and BSD (Scotland) asking for their support in reinforcing the legal requirement. Both Governments responded to our request and issued a statement to confirm that EPCs were here to stay; A message we immediately communicated to our Members. Other schemes also forwarded this response to their members.. Our next priority was to look for opportunities to help members in what may be a turbulent few months.

To help them, we produced the first set of marketing materials for members to use, to demonstrate the value of EPCs. The response from members was fantastic and we have now added new factsheets to cover each one of our schemes including non domestic EPCs, DECs, legionella and inventory inspections. In May OFGEM had issued a consultation on “deemed scores”. Surprisingly the consultation was not to identify whether a move to deemed scores was a good thing or a bad thing, but to consider the detail if it were to be introduced. Despite being given just five weeks Elmhurst responded strongly to the obvious weaknesses of such a system which would do nothing to incentivise installers to improve our least efficient homes. It wasn’t until June that DECC issued the “ECO: Help to Heat” consultation. Elmhurst promoted the consultation process, and explored the arguments for deemed scoring before publishing our full response prior to the closure date on 17th August. In essence we thought the adoption of deemed score to calculate and claim the amount of subsidy available was a good idea, but that an uplift should be applied to properties with an EPC rating of E, F or G to incentivise installers to improve homes in most need. We now await BEIS (you may remember that after the referendum DECC were amalgamated with BIS to form the new Department for Business Energy and Industrial Strategy) to consider the consultation response and decide what ECO will look like in April 2017 and beyond.

More positively the Government signed the 5th Carbon budget in July, which China and America also agreed in early September. Elmhurst welcomed the commitment to reduce emissions by 57% by 2032 and urged the Minister to ensure that this was delivered with an even focus on both reducing carbon from the generation side (e.g. renewable or nuclear) and reducing the demand for energy through the investment in energy efficiency initiatives. This 5th Carbon Budget, and the Paris agreement signed in December 2015, are international agreements, not European, and therefore will be unaffected by the BREXIT vote.

It is very disappointing that the Bonfield Report, now known as “Every Home Matters” has still not been published. We have been told by those involved that the document is finished and ready to go. Initially the local elections and then the EU referendum were to blame but now it appears that the change in Government Departments has further delayed its publication.

The next three months also have some exciting developments planned with more improvements to our U-value calculator and DesignSAP software, together with a new release of RdSAP Go for iOS which has been further enhanced to seamlessly capture assessment data ensuring Members will never again miss a required photo!

The quarter finished on a positive note with a Conservative think tank “Bright Blue” proposing that the minimum energy efficiency standards now rolling out in the private rented sector should also apply to privately owned properties. Whilst the proposal is likely to receive criticism it is reassuring that EPCs are still being referred to in such a positive way.

It was Albert Einstein that said ‘In the middle of difficulty lies opportunity’ and that has proved to be the case for Elmhurst Energy and I hope is the same for many of you too.

Closer to home you will have read the exciting news that Elmhurst have acquired the National Home Energy Rating (NHER) accreditation scheme from NES. This exciting development for the industry will benefit both NHER and existing Elmhurst Members with;

On that positive note it just remains for me to welcome you all, especially our new members from NHER, to this edition of Energy Matters and hope you find it both enlightening and enjoyable to read.

• improved products and services that takes the best from both schemes • more resources to develop great software • more staff to deliver better levels of technical service • better value for members

It was Albert Einstein that said ‘In the middle of difficulty lies opportunity’ and that has proved to be the case for Elmhurst Energy and I hope is the same for many of you too.

and an unrivalled combined knowledge and experience that reinforces our ‘Excellence in Energy Assessment’ position. Martyn Reed More details are available in this magazine.

Managing Director Elmhurst Energy

Energy Matters / Autumn 2016

CONTENTS 2 Foreword 6 Elmhurst Energy Support and Represent Energy Assessors 14

8 Elmhurst Energy: The New Home of NHER 11 TECHNICAL BULLETINS 12 Design SAP Case study: Focus Consultants 14 Section 63 in Scotland

16 Market Data 18 A Brief History of Energy Assessment 20 Energy Ratings and EPCs Where to Now

Energy Matters / Autumn 2016

ELMHURST ENERGY SUPPORT AND REPRESENT ENERGY ASSESSORS A M A R PA L S I H R A

As ‘the’ established experts in energy assessment, we are passionate about supporting a sustainable industry for energy assessors alongside energy efficiency products and service providers.

ur vision is to create an energy efficient society and we believe that we have a responsibility to ourselves, our members and the community at large to speak up on matters of energy efficiency, to keep this critical issue within the political and business agenda and to maintain the Energy Performance Certificate as a valuable cornerstone of future energy efficiency initiatives.

Energy Matters / Autumn 2016

We get involved by: 1. Actively listening to our members and refining our own position based on input from the grass roots. 2. Working with Government to create pragmatic and workable energy assessment solutions 3. Identifying and communicating changes in the energy assessment industry. 4. Formulating a position, even when that might be perceived by some as challenging, if we believe it to be right. 5. Proactively speaking on behalf of industry members who share our vision.

• initiated the review of QA procedures so that we can focus on the output (i.e. the EPC), rather than the sheep dip approach that looks solely at the process of creating it, which all schemes currently have to follow. • wrote to our Local MP to ask for a meeting to promote EPCs for all Government policies. • responded to the deemed scores for Ofgem – demonstrating fervently that EPCs were 100% required in ECO to target fuel poverty families (click here to see our response) and the list goes on.....

Our ‘latest news’ on our website and shared widely, featured articles on deemed scores, the referendum, the rise in fuel poverty and the SOR consultation response; all advocated that EPCs need to be part of the solution. In addition to the above, we; • wrote to estate agents, Government departments and new Ministers to reaffirm the importance of the EPCs.

We at Elmhurst helped create what the industry now know as the EPC; it was through using our extensive knowledge and real life experience of providing business solutions to rate the energy efficiency of buildings, way before any European Directive came about, that the UK was able to provide a standardised approach to Energy Rating using EPCs. Our solutions were used by thousands of clients including Chartered Surveyors, Architects, House

Builders, Building Control Bodies, Insulation Manufacturers, Residential Social Landlords etc. Through the 14 years before EPCs and since, we have thoroughly understood energy assessment and more importantly we passionately believe in it. Elmhurstâ&#x20AC;&#x2122;s expertise in this sector continues. We have been heavily involved in all the amendments and changes to the EPC and RdSAP/SAP methodology from the start, and there have been many! It is now a very different methodology, but at its heart it is still a measuring tool to compare and contrast domestic dwellings to enable consumers to understand how energy efficient the property is and to give people the opportunity to understand how they can improve the energy performance of their home. We at Elmhurst value our history but ensure that we build upon it to always be at the cutting edge of this fast moving industry. As an Accreditation Scheme we believe we offer more; we say more, we campaign more and we stand up for assessors and the industry.

Through the 14 years before EPCs and since, we have thoroughly understood energy assessment and more importantly we passionately believe in it.

For regular news and updates from Elmhurst Energy, please visit: www.elmhurstenergy.co.uk/news

Energy Matters / Autumn 2016

ELMHURST ENERGYTHE NEW HOME OF NHER MARTYN REED

lmhurst Energy has acquired the National Home Energy Rating (NHER) energy assessment scheme from NES Ltd. It is our intention, over time, to combine the best of NHER and the best of Elmhurst into one new great scheme. NHER was founded in 1990 by the National Energy Foundation, an organisation that 26 years on is still very active in the sector and a partner of Elmhurst Energy. Their first Energy Rating Certificate was produced in 1990 and Dyfrig Hughes, who is still with NHER, presented it to Margaret Thatcher, then Prime Minister. In 2003 Elmhurst Energy, and the team at NHER, co-developed the RdSAP energy rating methodology. As we know RdSAP became the foundation of the Energy Performance Certificates that were made a legal requirement, and have been a reliable foundation for every government energy efficiency initiative since. From 2004 NHER was run by the National Energy Services, a subsidiary of NEF and in 2011 NEF sold their interest to the retail giant Kingfisher Group Plc, the home of B&Q. In early 2016 NES was subject to a management buyout from Kingfisher, lead by Austin Baggett, Managing Director. This short history demonstrates the long pedigree of NHER and the remarkable similarities that NHER share with Elmhurst Energy who, as you will know, 8

Energy Matters / Autumn 2016

were formed in 1993, co-developed RdSAP and operate a marketing leading accreditation scheme. Commercially Elmhurst has acquired the NHER scheme from NES Ltd, but both parties see the event more as a merger of two organisations of similar size, similar pedigree and similarly good reputations, combining forces to benefit the Members of both schemes.

we have scheduled a number of free regional roadshow events around the country where we can give further explanation as to what we expect to happen, and also respond to any questions that members might have.

Members of NHER and Elmhurst will benefit from; • improved products and services that takes the best from both schemes • more resources to develop great software • more staff to deliver the highest levels of technical service • better value for members and an unrivaled knowledge and experience that reinforces our Excellence in Energy Assessment position. Elmhurst and NES have spent several months planning for the transition with the aim to make only the necessary changes which will benefit members, and at a pace that minimises risk. Initially nothing will change and the NHER team will continue to work out of the Milton Keynes office. Everything will be carefully planned, announced well in advance and if there are problems we will be there in support. We will continue to keep members updated and will maximise notice of impending changes. In addition

Until further notice please continue to contact the NHER team on 01908 442 105. If you have a burning issue, or simply want to test your understanding, then please visit the information page located on the Elmhurst website, to keep up to date with the latest information.

ELMHURST ENERGYHELPING MEMBERS TO MARKET THEIR SERVICES We realise that occasionally members may require some additional help when it comes to securing new business. With access to Elmhurst’s guides and fact sheets, members will find it much easier to inform potential customers about their energy assessment work and the benefits it can offer. Elmhurst will continue to produce marketing material to proactively help our members grow their business. Our recent fact sheets include ‘Energy Efficiency of Public Buildings’, ‘Air Conditioning Inspections’ and ‘Section 63 in Scotland’.

GUIDES AND FACT SHEET

Energy Matters / Autumn 2016

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The new

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Improved user interface Integrated camera facility Collect Evidence and input data in one OďŹ&#x201E;ine data capture Guidance mode available to highlight mandatory evidence Input data in any order

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TECHNICAL BULLETINS ONLY AVAILABLE TO ELMHURST MEMBERS At Elmhurst Energy we are proud of the quality of technical support we provide to members. One of the most beneficial and proactive ways we support them is through a wide range of Technical Bulletins, all written by our in house experts in a style that is easy to read and understand. Elmhurst Members can access any Technical Bulletin appropriate to their accreditation through Access Elmhurst/ My Documents. If you are not currently an Elmhurst Member and wish to access our first rate support, including this extensive list of Technical Bulletins, why not Switch today at www.elmhurstenergy.co.uk/switch-to-elmhurst-energy

Existing Dwellings TB05 Listed Buildings TB06 Secondary Heating TB07 Storage & Electric Heating TB08 Sheltered & Alternative Walls TB09 Room in Roof Flats TB13 Tenure, Trans Type & Disclosure TB24 RdSAP Convention TB46 Use of Non-Default U-values TB51 Solar PV TB52 Biomass TB54 CPD Guide TB56 Guide to Electric Meters TB58 DEA FAQs TB60 Measurement Guide for DEAs TB61 Identifying Lighting TB71 Flue Identification TB77 Glazing and Draughtproofing Non Domestic TB10 How to lodge a Non Domestic EPC using iSBEM TB11 How to lodge a Display Energy Certificate TB41 Identification of Atria TB42 Display Lighting TB43 Split System Efficiency Calculation TB44 Lighting Identification TB47 Boiler Efficiency TB48 iSBEM Conversion Tool TB49 Multiple HWS Storage and Instantaneous TB62 DECs Verification of Floor Areas TB65 Identification of PV Features TB67 Effective Recommendation Reports using iSBEM TB68 Producing a Potential Asset Rating for EPCs in Scotland TB72 Air Conditioning Conventions TB73 BRE Certified Thermal Products TB76 Shading Transmission Factors On Construction TB21 SAP Conventions OCT 2013 TB22 Technical Guidance on Air Pressure Testing TB57 Design SAP 2012 Enhancements TB64 SAP Conventions v6 TB70 OCDEA Room in Roof

SWITCH TODAY Energy Matters / Autumn 2016

DESIGN SAP CASE STUDY: FOCUS CONSULTANTS A M A R PA L S I H R A / J A S O N R E D F E A R N

Saving build costs is an important factor in the success of any development. That is even truer when it comes to saving the majority of those costs upfront, before the build even begins. Powerful performance software such as Design SAP is helping to make those savings. We spoke to Jason Redfearn at Focus Consultants to get his opinion on Elmhurst’s software.

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AP is the government’s national calculation methodology for the energy efficiency assessment of newly constructed dwellings. Elmhurst Energy developed Design SAP 2012 as a further evolution of our Design SAP 2009 and 2005 software products, which are used for building energy calculations throughout the On Construction industry. SAP is used by many leading industry professionals including the likes of consultants, manufacturers, house builders, Building Control/Standards Bodies, Universities/Colleges etc. All versions of Elmhurst’s Design SAP Software are fully BRE tested and Government approved; they calculate the necessary building regulations/ standards for England (Part L), Wales (Part L), Northern Ireland (Part F) and Scotland (Section 6). Jason Redfearn is the Partner responsible for Energy services, working at Focus Consultants, an innovative multi-disciplinary practice working across the UK. Focus Consultants works across sectors, with a varied client base both private and public. With a building surveying background, Jason uses this practical experience on advising on sustainability and energy efficiency measures in buildings, he is passionate about making a positive change to the places that people live and work.

“Design SAP is an integral tool, with constant use, and it forms the basis of advice we give to our clients, providing quick accurate results on effective measures to aid Part L Compliance,” explains Jason. Elmhurst Energy’s powerful Design SAP software calculates the SAP rating, the Environmental Impact Rating (EIR), the Dwelling Emission Rate (DER), the Target Emission Rate (TER), the dwelling fabric energy efficiency (DFEE) and the Target Fabric Energy Efficiency (TFEE) as well as incorporating Elmhurst’s renowned U-Value calculator.

J A S O N R E D F E A R N O F F O C U S C O N S U LTA N T S , B A S E D I N L E I C E S T E R .

“Without Design SAP software we wouldn’t be able to offer a substantial part of our business proposition in the Energy team. It’s intuitive, straightforward and you can batch process, update and retrieve EPCs en masse and that makes a real difference,” continues Jason. “Elmhurst Energy always listen to their customers and we have seen a significant number of software enhancements over the past two years and our clients benefit from the service we gain from them.” Design SAP differs to other energy assessor software as it can be used either by accredited energy assessors to produce new build EPCs as well as Building Regulation calculations, or by trained individuals that aren’t necessarily accredited simply to produce a SAP calculation. Benefits of the Elmhurst’s Design SAP Software: • Easy to follow Building Regulations/ Standards compliance display – shows results in ‘real time’.

• Import from Design SAP 2009 – quick facility to import surveys, properties or U-Value calculations into Design SAP 2012. • Our industry leading U-Value calculator with a comprehensive list of building materials. • Block compliance report showing average DER/TER and DFEE/TFEE for multiple dwellings in accordance with Regulations/Standards. • Comprehensive ‘Batch’ processing facilities including automatic calculation of linear lengths for thermal bridging junctions. Lengths of new SAP 2012 bridges R1, R2 and R3 will now also be imported for you. • Personalisation of reports with company logos and details. • Automatic notifications & updates. • Reference section covering software, technical and regulatory information for all regions. • Survey data backup & restore facility for peace of mind. • Experienced technical support team. • Lodgements of EPCs. • Requesting of UPRNs. • Report creation.

• Batch survey updating e.g. update 100 properties with a new boiler at once. • Flexible data management- users now have the ability to split the database into multiple ‘Projects’. The user can select any one of these projects when logging in to Design SAP 2012 • Home Quality Mark Integration

For more details on Elmhurst Energy and to search for an energy assessor visit www.elmhurstenergy. co.uk/search-for-assessor

Energy Matters / Autumn 2016

SECTION 63 IN SCOTLAND ADRIAN LEITHEAD

From the 1st September 2016 buildings over 1000m2 will require an Action Plan to be lodged in addition to an Energy Performance Certificate (EPC) where it is offered for sale or for rental to a new tenant. This requirement has been introduced as part of the Climate Change (Scotland) Act 2009. The regulations build on the already established process producing Energy Performance Certificates (EPCs).

uildings within the UK account for over 40% of the total carbon emissions emitted by the UK. By addressing the energy efficiency of the existing building stock these emissions can be reduced. Key Elements of the Regulations • Provides a first step for improving the non domestic existing building stock in Scotland. • Creates a strong platform from which further regulatory provisions can be introduced. • Applies to the sale and lease of buildings or building units over 1000m² in floor area. • Landlords of commercial premises will need to undertake a ‘Section 63 Action Plan’ for energy efficiency improvements • Provides the option of improving the building within a reasonable timescale or deferring improvements by reporting the annual energy use of the building. The latter is done by lodging a Display Energy Certificate (DEC). Elmhurst Energy were the first to promote their Section 63 Advisor training and as an established accreditation scheme of Non Domestic Energy Assessors are well placed to offer accreditation for Section 63 Advisors.

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Only energy assessors who are deemed to be competent by an approved organisation such as Elmhurst Energy are able to produce and lodge valid Section 63 Action Plans. With most regulations there are some exclusions and exemptions, and this is no different for Section 63. These include: • Where the lease of a building or building unit is renewed • The building is exempt from an EPC under regulation 4a of the Energy Performance of Buildings (Scotland) Regulations 2008 • The building was constructed in accordance with a building warrant applied for on or after 4 March 2002. • The building otherwise meets or exceeds the energy standard applicable on 4 March 2002. This is reported on any EPC Recommendations Report produced using v5.2g or onwards. • The building has been improved through measures funded by a Green Deal repayment plan The Action Plan which is required to be produced and lodged on the central register, derives from the initial EPC data that is required for the sale and rent of Non Domestic buildings. From this data and additional data collected and agreed by the client, a Section 63 Action Plan is created and lodged.

The first step of the action plan is determining if any prescribed measures apply to the building. Where no prescribed measures apply the action plan is lodged noting this, and no further action is required. The prescribed measures include the following: central heating control, lighting controls, draught-stripping windows and doors, hot water storage insulation, lamp replacement, boiler replacement and roof insulation. The report will show which are applicable and savings predicted in terms of CO2 emissions and energy consumption. A set of alternative measures must also form part of the Section 63 Action Plan. These must first be discussed with the building owner and be practical to implement. Any of these measures must be in accordance with the provisions set out under the Building (Scotland) Regulations 2004. These too are reported, showing savings in terms of CO2 emissions and energy consumption. These savings must be at least the same as or greater than the savings of the prescribed measures. These measures are consulted with the building owner or representative and an alternative scenario is determined where they have decided not to accept the prescribed measures in full. A date by which these measures are to be completed by is also agreed that must be no later than 42 months after the issue date of the first Action Plan for the building. This date is also retained in any subsequent Action Plan produced.

Only energy assessors who are deemed to be competent by an approved organisation such as Elmhurst Energy are able to produce and lodge valid Section 63 Action Plans. the initial Action Plan or within 12 months of the date of issue of the initial Action Plan. Where this route is adopted, after the issue of the initial Action Plan, a new plan must be lodged recording the change. Once an Action Plan has been lodged and submitted to the central register, detailing that this route is to be taken to defer improvements, the DEC must be completed and lodged within 28 days. Failure to do so may result in the Action Plan being marked â&#x20AC;&#x2DC;not for issueâ&#x20AC;&#x2122; and required to be replaced. Once the measures are completed and installed in the building a new EPC is produced reflecting the changes made. This records the asset performance of the building after the improvements have been completed. A new final Action Plan is also required to be

submitted to the central register to show compliance with the regulations. This new Action Plan is produced using the existing Action Plan data and the new EPC Report Reference Number (RRN) is entered along with the actual completion date. The regulations present an opportunity for existing Non Domestic Energy Assessors to train as Section 63 Advisors and produce possibly multiple EPCs and Section 63 Action Plan reports for clients to ensure that they are compliant with the new regulations. In addition those assessors who are registered and accredited as Display Energy Certificate assessors can also benefit from the regulations where building owners wish to postpone installing the improvement measures to their buildings by completing a Display Energy Certificate annually until the improvement measures are completed.

Please visit www.elmhurstenergy.co.uk/ training/section-63-training to see our scheduled courses and availability of places. The courses can be booked and paid for online. or call us on 01455 883 231.

Where a building owner does not wish to complete the measures by this date, they can be postponed completing a Display Energy Certificate (DEC) annually until such a point as the measures are implemented. DEC reports the annual operational energy consumption of the building. This route must be decided either on Energy Matters / Autumn 2016

Existing Dwellings

MARTYN REED

Here at Elmhurst we collect and analyse data from many sources in the belief that it helps us make better business decisions. Turning this data into a digestible form takes time and requires a detailed understanding of context. In each edition we will provide you with a snapshot of this data which we hope you find of interest, and maybe help you prepare for the future. Following some very helpful feedback from Members in the last edition, we have tried to be consistent over which data is being displayed and overlaying the two datasets onto one graph, where possible. Unfortunately New Build data is issued quarterly, as opposed to monthly, and to do so with this data would mean the EPC data was less useful.

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Volume of EPCs peaked in the 12 months to May 2014, driven in a large part by ECO and to a lesser extent by Green Deal.

Commentary • Trend suggests reverting back to March 2013 volumes. • The increase of EPCs required for house sales and rentals is being masked by a fall off of EPCs issued for other purposes. • House sales had a spike in March 2016 when the buy-tolet stamp duty rules changed and have softened since EU referendum. Outlook • Other than pockets of very high value properties, house sales do not seem to have been impacted significantly by BREXIT. Recent industry news suggests confidence is returning and the demand for EPCs for sale and rental will start to grow to match the buoyant housing market. • Predicted growth in new build EPCs is likely to have a domino effect on the sale of existing dwellings.

New Build / On Construction (Residential)

Non Domestic /Commercial Buildings

Volume of residential house starts and completions on a rolling 12 month basis, to Dec 2015 (latest available).

Non residential (commercial) property sales in the UK on a 12 month rolling basis Volume of Commercial property EPCs in the UK on a rolling 12 month basis

Volume of on construction (new build residential) EPCs in the UK issued on a rolling 12 month basis

Commentary • Housing market recovering after 8 years of low activity. • Volume of EPCs issued is tracking growth in new build completions.

Commentary • Commercial property sales slowing following a period of consistent growth. • Volume of EPCs issued stable but significantly lower than sales volume which may mean reliance on old EPCs, or high levels of non compliance. Outlook • Elmhurst is taking action to focus on perceived high levels of non-compliance. • Old EPCs that are nearing end of life and Minimum Energy Efficiency Standards will stimulate demand and levels of compliance.

Outlook • Good news for Elmhurst’s OCDEA Members as the volume of new build EPCs is on the increase, and levels of compliance high.

Energy Matters / Autumn 2016

A BRIEF HISTORY OF ENERGY ASSESSMENT AND RATINGS IN THE UK DYFRIG HUGHES

When Elmhurst Energy acquired the National Home Energy Rating Scheme from NES Ltd we became “The new home for NHER”. This article by NHER’s Dyfrig Hughes describes the scheme pedigree and why Elmhurst, with its 23 years experience, was the ideal partner.

Presentation of the first NHER certificate in 1990: Left to right: Dyfrig Hughes, Jake Chapman, Jim Potter and Margaret Thatcher.

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nergy assessments of existing homes started in the UK in the 1980s, with the launch by the Open University of the Energy Matters scheme, whereby householders could themselves fill in a questionnaire about their home, post it to the OU and get an energy audit report back in the post. Soon after that came the “Energy Auditor” software from Energy Advisory Services, designed to be used by what we would now call an Assessor in the home using a portable computer. The process generally involved “fine tuning’ the results to the householder’s actual fuel bills, to arrive at more realistic estimates of the savings from energy measures. The assessor would then discuss the options with the householder, often at the kitchen table in front of the computer. Energy ratings, as distinct from assessments, have also been around since the 1980s, when countries such

as Denmark, Australia and the US developed their own simple rating systems. The first energy rating system in the UK was the Milton Keynes Energy Cost Index (MKECI) for new homes. This was the first energy rating to be based on a computer model that predicted the running costs of the property. This, together with the Energy Auditor experience, led on to the first UK wide voluntary energy rating scheme, the National Home Energy Rating (NHER) launched in 1990 by the National Energy Foundation (NEF), covering both new and existing homes, and based on the Building Research Establishment Domestic Energy Model (BREDEM 12). In 1994, NEF established National Energy Services Ltd (NES) to take the NHER scheme forward. In the early 1990s, an alternative 5 star energy rating scale to the NHER was developed by a company called MVM - Starpoint, a director of whom went on to form Elmhurst Energy. The NHER and Starpoint ratings competed for a number of years and prompted government to create the Standard Energy Assessment (SAP) in 1992 to “enable people to compare energy labels”.

The NHER rating continued alongside SAP for many years, and was a 0 to 10 scale based on the total running costs of a home, including lights and appliances, and varied with location in the UK. The first mention of SAP in Building Regulations was in 1998, but it was not until 2006 that a carbon rating derived from the SAP calculation became the basis of Building Regulations compliance (the Target Emissions Rate -TER). The Reduced Data SAP (RdSAP) was introduced in 2005 specifically for the introduction of Energy Performance Certificates for existing homes. With it came the A to G scale and Environmental Performance Index (EI). RdSAP was developed jointly by National Energy Services and Elmhurst Energy under contract to BRE, and in 2009 the two organisations again worked with Brian Anderson of BRE to specify a major update to RdSAP (9.91). Energy ratings are now a fundamental part of the drive to improve energy efficiency and reduce carbon emissions from homes.

Brian Anderson All of us here at Elmhurst were very sad to hear that Brian Anderson passed away recently. Brian played a formative role within the Building Research Establishment (BRE) in Scotland to create the energy model BREDEM that underlies SAP and RdSAP and to evolve them as the needs of UK Building Regulations, EPCs and various government energy programmes to improve domestic energy efficiency have developed. He will be greatly missed.

Energy Matters / Autumn 2016

ENERGY RATING AND EPC s WHERE TO NOW? DYFRIG HUGHES

Dyfrig Hughes, Technical Director of NHER , gives his personal view of the existing dwellings energy assessment industry and what we can do to ensure its continued success.

ince the introduction of EPCs in 2007, energy assessments and ratings of buildings have become a fundamental part of the drive towards improving energy efficiency, reducing carbon emissions and tackling fuel poverty in the UK. They have, for over 10 years, been central to the way our new buildings comply with Building Regulations; they have been used as the gateway

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to accessing government / energy company finance for installing energy measures for the past 6 years (e.g. FITs, RHI, ECO); they are beginning to be used to set thresholds in new legislation (e.g. MEES, Fuel Poverty Strategy). However, various things have impacted the industry’s confidence over the past two years or so. Firstly, there are strong doubts about the level of the current government’s true commitment to energy efficiency, renewables and tackling climate change. Secondly, there are concerns about the impact that Brexit could have on the statutory requirement for Energy Performance Certificates and on the housing market generally. Thirdly, the likelihood that EPCs will no longer be required for ECO from April 2017 onwards, with a return to the simpler approach of ‘deemed scores’ based on dwelling types. It’s very easy to be negative and downhearted in the face of this, but instead perhaps it’s a good time to take stock of what we have achieved so far as an industry, and at how relevant energy ratings and assessments are for the future ahead of us.

What have energy rating & EPCs achieved? • Given us a common language to use in talking about the overall energy efficiency and carbon impact of a building, understandable by non technical people. Obvious examples of this are the SAP and EI ratings on the EPC and the corresponding A to G scale. • Enabled targets to be set and progress tracked. For example, this has helped social landlords to improve the overall energy efficiency of their stock, using the “average SAP” as an indicator of progress. • Shifted the focus beyond simply improving U values and increasing boiler efficiency to optimising all aspects of a dwelling, as ratings are affected by all technologies present in a building. • Enabled the most effective technologies / approaches to be identified and implemented. Exaggerated claims about products in marketing literature can now be ignored or rebuffed because we have an objective independent assessment readily available.

• Encouraged manufacturers to improve the energy efficiency of their individual products, where these affect the SAP calculation e.g. boiler efficiency in the ‘products database’ underlying the SAP calculation. • Helped improve the underlying Energy Calculation Models, in particular SAP, as manufacturers want to see their systems included and properly represented and as we get feedback from assessors on the practicalities of assessing homes. • Provided a gateway for accessing government / energy company finance for energy measures e.g. via ECO, FITs, RHI and FITs. • Provided a threshold for regulatory drivers such as Building Regulations (TER) and the new Minimum Energy Efficiency Standards (MEES) for private rental sector (E and above).

If EPCs and energy ratings are such a good thing, why would they not continue to play a significant role? So, what are the main doubts about energy ratings, and in particular EPCs? Do assessments and EPCs truly reflect the characteristics of a building? In the case of existing dwellings, there have been examples around ECO of EPCs being intentionally doctored to maximise the funding received for measures. This practise, by a small number of assessors, has unfortunately eroded confidence in the EPC. Another cause for concern is some assessors doing a poor job. This can be due to ‘corner cutting’ to reduce the time on site or to a straightforward lack of professionalism - not following conventions, carelessness etc. None of this is helped by the current low fees paid to assessors in an ever more competitive market.

Energy Matters / Autumn 2016

In the case of new build, the so called ‘performance gap’ (between the theoretical and the actual performance of a building) is firmly established as a significant issue. Despite some very good work on this 3 years ago by the Zero Carbon Hub, we are yet to see concerted action to address the issue. The main issue here from an assessment perspective is that, for various reasons, the data entered into a DER calculation may not match what the builders actually build.

that will get installed under the ECO Transition scheme starting in April, if ‘deemed scores’ replace the RdSAP assessment. As deemed scores are based on average dwellings rather than the specific dwelling, this could in my view lead to a worse use of the money in the ECO budget in terms of ‘real world savings’ per £ invested in measures.

There are also often rumblings about “RdSAP or SAP not being fit for purpose”, although given updates to the methodologies over the past 5 years these have quietened down considerably.

Here are ten points that I think would provide a good focus:

Another aspect that undermines confidence is that energy ratings for existing homes and most non domestic buildings are still purely theoretical, with no reflection whatsoever of actual running costs. Do assessments and EPCs add enough value to justify the cost? An EPC is currently required by households applying for Feed In Tariffs and Renewable Heat Incentive. This does not appear to be being challenged, and I think it’s accepted that this is a good way of encouraging insulation before renewables. However, for ECO from April 2017 it’s very likely that an EPC will no longer be required as the basis for calculating the ECO score. This is seen as a way to reduce delivery costs. Although there are savings in not having to pay the DEA, there are also savings on the cost of Technical Monitoring which apparently often involves Ofgem or their agent in lengthy interactions with the DEA and / or the DEAs accreditation scheme. Also, Ofgem see substantial savings to be made in a simplified workflow. What’s not being taken into account here though is the impact on the cost-effectiveness of the measures 22 Energy Matters / Autumn 2016

How should the industry respond moving forward?

1. Be positive about the value which energy assessments, energy ratings and EPCs bring and lobby for their continued use in UK energy policy. 2. Remember that assessments / EPCs are not an end in themselves, but a potential catalyst for action. The real objective is warm, energy efficient, low carbon homes. 3. Rebuild confidence in the EPC through a drive to improve quality and professionalism.

4. Figure out how Assessors can add more practical value in improving the energy efficiency of UK housing, in addition to data collection & issuing EPCs. 5. Ensure that any Green Deal successor scheme addresses the flaws with the previous scheme. 6. Continue working together as an industry to achieve common goals, as we are currently doing around Smart Auditing. 7. During the ECO Transition period, assess the relative cost effectiveness of deemed scores in practice vs EPCs as the basis for ECO scoring, in time to influence ECO3 8. Consider how new technology and working practices can make the rating process better represent buildings. 9. Press for the next Building Regulations update to have more focus on getting the design stage right, e.g. by introducing a two stage audit process for new build EPCs, at the Design and As Built Stage. 10. Leverage Smart Meter data to provide an operational rating for every existing home.

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Energy Matters / Autumn 2016