ENERGY MATTERS CONFERENCE EDITION
ELMHURST ENERGY CONFERENCE: CHARTING A ROUTE MAP FOR ENERGY CERTIFICATES
The Clean Growth Strategy
EPCS IN BUILDINGS CALL FOR EVIDENCE
CONFERENCE SPEAKERS Energy Matters / Conference Edition
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FOREWORD MARTYN REED
It is with the great pleasure that I welcome you to the Conference Edition of Energy Matters. 2018 marks Elmhurst’s 25th anniversary and we wanted to involve members in that celebration. It was therefore a very fortunate coincidence that government issued the Clean Growth Strategy in October 2017, which in turn has led to the publication of the call for evidence on: ‘Energy Performance Certificates in Buildings’, one of the key areas we will be covering at this year’s conference.
The conference celebrates the past and outlines a plan for the future of energy certificates, by exploring policy, reviews and regulations. It is due to take place on Tuesday 2nd October at the Leicester Tigers stadium, and is open to all energy assessors and property professionals. For those who attend we hope you enjoy the day and we look forward to having a celebratory drink with you afterwards. Our vision for the industry Elmhurst was formed in 1993, and since then has gone from strength to strength. With over 7,000 members Elmhurst is responsible for more EPCs than all the other schemes combined. As the largest accreditation scheme we thought it necessary to put together a document which we believe underlines the highest priority actions for government and industry; to reduce fuel poverty,
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energy consumption and the impact of climate change (in the interest of our members). This in turn led to the launch of our ‘Manifesto for Change’. The manifesto was written in the knowledge that by the end of 2019 the UK will have left the European Union and the requirements of the European Directive, that demands EPCs, will no longer apply. Although some may perceive this to be doom and gloom, we see this as an excellent opportunity to develop energy assessments and energy certificates without any perceived restrictions and obligations that may have existed. By documenting our views it provides a focus for the years ahead on which we will lobby and exert influence at every opportunity. Whilst we cannot claim all the credit, it is interesting to see that recent developments such as the Minimum Energy Efficiency Standards (MEES) and the Clean
The six steps in Elmhurst’s Manifesto include:
1. Use the opportunities of BREXIT to improve
energy certificates 2. Industry should work together to drive up the quality of energy certificates 3. Government should devise and implement policies to deliver on their strategic targets 4. Government need policies that focus on helping families out of fuel poverty 5. Government to demand that energy certificates accurately reflect the current state of the property 6. Industry extend the role of Energy Assessors to include best practice advice on how to reduce fuel bills and make homes warmer
Growth Strategy were both items that we had asked government to introduce, so maybe our efforts were rewarded. Our mission has been, and will continue to be, to create a more energy efficient society through valuable assessment, and driving the improvement of all homes and businesses throughout the UK. Elmhurst supports and campaigns for a sustainable industry for energy assessors and aims to ensure that energy efficiency is always at the forefront of the political and business agenda. In this, our 25th year, we will continue to promote our energy assessor membership, develop the highest standard of assessment software and push the EPC as the very best way to measure energy performance in buildings.
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Elmhurst would like to extend a big thank you to everyone, especially our customers and members; who have been part of our journey.
Elmhurst Energy Conference: Charting a Route Map for Energy Certificate Event Date: Tuesday 2nd October Event Time: 10:30-15:30 (Registration from 10:00) Event Venue: Welford Road Stadium, Aylestone Road, Leicester, LE2 7TR
Martyn Reed Managing Director Elmhurst Energy
for more information or to book your place visit: www.elmhurstenergy.co.uk/ elmhurst-energy-conference
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FEATURE
AN OVERVIEW OF THE CLEAN GROWTH STRATEGY MARTYN REED
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he Department for Business, Energy & Industrial Strategy (BEIS) issued their ‘Clean Growth Strategy’ in October 2017 with a mission to lead the way to a low carbon future. As many Elmhurst members will know the Climate Change act of 2008 committed to reduce carbon emission (of 1990 level) by 2050. The good news is that by 2017 those emissions were down by 42%, due in part to de-industrialisation, the impact of tighter building regulations, energy performance certificates and various government initiatives that have made use of EPCs, such as Feed In Tariffs (FITs), Renewable Heat Incentives (RHI), and the Energy Company Obligation (ECO). The challenge now is to reduce carbon emissions even further to achieve an overall 80% reduction whilst at the same time grow the economy. The government know that they must have a strategy to take the UK into a clean energy future, and that many policies and strategic decisions are required. The Clean Growth Strategy attempts to create a pathway to this future, identifying key areas within the energy efficiency of people’s homes and commercial premises.
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The report itself is split into 6 sectors: 1. Improving Business and Industry Efficiency and Supporting Clean Growth 2. Improving Our Homes 3. Accelerating the Shift to Low Carbon Transport 4. Delivering Clean, Smart, Flexible Power 5. Enhancing the Benefits and Value of Our Natural Resources 6. Leading in the Public Sector According to the report emissions from homes account for 13% of total UK emissions (32% of total UK building emissions). The government admits within the report that there is a clear ‘policy vacuum’ for homes, which if not rectified could negatively impact their goal of reducing emissions. This is why the so called ‘2032 pathway’ has been introduced to address this policy gap, providing a clear pathway to lower carbon emissions in homes. The pathway has also been introduced for commercial properties as well.
To ensure that CO2 emissions are reduced between now and 2032, the Clean Growth Strategy draws some conclusions and presents a number of commitments. We have split these into three categories- ‘General’, ‘Residential properties’, and ‘Commercial properties and business’.
General
• A commitment for a review of Building Regulations
• • • •
for energy efficiency following the current review on Regulations (The Grenfell Review) for both domestic and non-domestic buildings Provide £255 million of funding for energy efficiency improvements in England for the Public Sector Reinstate a ‘Clean Growth Inter-Ministerial Group’ to monitor the implementation of the strategy Backing the LENDERS project (which Elmhurst worked on), to promote the concept of green mortgages Consult on reviewing trigger points for EPCs and improving their presentation- this has lead to the recent ‘EPC in buildings call for evidence’
Residential properties
• Concluding that there is now a clear link between • • • • • • • • • •
cold homes and ill health – costing the NHS £760 million a year An admission that the current trajectory will see carbon emissions rise – therefore action is required Continued support for ECO policy until 2028 Improve private rented properties to at least band ‘C’ on the EPC by 2030 (where practical, cost effective and affordable) Improve standards in new boiler installations Consultation in 2018 on how to make MEES in private rented sector more effective, including the proposal to remove the no upfront fee loophole The aspiration is that as many homes as possible are EPC band C by 2035 (where practical, cost effective and affordable) A move that could lead to all new homes being off the gas grid from the mid 2020s A commitment to work with Industry to enable the Each Home Counts review – (again Elmhurst is helping push this in the right direction) Smart Meter Data being used widely to promote energy efficiency Reform of RHI to focus on long term decarbonisation
Commercial properties and business
• Consulting on raising the minimum standards for rented commercial building
• An aim to develop a package of measures that
support businesses to be 20% more energy efficient by 2030 • Government will build upon existing schemes such as the Energy Savings Opportunity Scheme (ESOS) making reforms where necessary
Elmhurst welcomes the long term commitments and goals established by government in this important document and is delighted that the commitment given in October has resulted in the latest ‘EPC in buildings’ call for evidence. Elmhurst continues to engage with all government departments and industry to make an energy efficient society a reality. What we do ask is that reducing carbon emissions is not considered in isolation; this country also needs to reduce fuel poverty, to improve air quality and to secure fuel supply. Some recent policies actually achieve on one at the expense of another (for example ECO moving from using EPCs to deemed scores), but when the issues are considered holistically we believe that it is possible to win on all fronts. Our members produce Energy Certificates and calculations and these are the measuring tape by which the UK can make informed decisions about all of our buildings. To initiate behaviour change we need carrots (incentives to respond quickly), sticks (for those that refuse), and ‘noise’ (so that people know about it). Elmhurst can assist on the latter, but first we need government to provide the carrots and sticks to ensure that we make our homes and businesses warmer and cheaper to run.
According to the report emissions from homes accounts for 13% of total UK emissions (32% of total UK building emissions).
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FEATURE
CALL FOR EVIDENCE: ENERGY PERFORMANCE CERTIFICATES FOR BUILDINGS S T U A R T FA I R L I E
E
lmhurst had been eagerly awaiting the ‘EPC in buildings’ call for evidence, and in the week before the parliamentary recess it finally arrived.
The aims of the Call for Evidence are: 1. To gain evidence on how the current EPC system is working 2. To gather information on the suitability of the current system of EPCs for both their current and emerging uses in measuring building energy performance 3. To obtain feedback on suggestions for improvement.
As requested in Elmhurst’s 2018 Manifesto for Change, the call for evidence is looking for opportunities to make better use of Energy Certificates after we leave the European Union in March 2019. Government acknowledge that EPCs are already “a key tool in promoting energy performance improvements in buildings.” Now they are looking to use them to deliver on the aims of the Clean Growth Strategy, by identifying new trigger points for when an they will be required, and how we can improve them to ensure they contain “good quality data”, and are reliable, accurate and up to date. We are delighted that government now realise that EPCs are not just a legal obligation but an important tool which building owners should use as a catalyst for improvement. Previously, government policy has prevented departments from ‘gold plating’ EU directives, which has resulted in more pain and less gain. Fortunately, this government wishes to explore options for additional ‘trigger points’ for requiring an updated EPC. Elmhurst consider this to be a fantastic opportunity for our industry, and a positive confirmation of the role that energy assessors fulfil in improving the energy efficiency of our buildings.
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For clarity the call for evidence covers all building types, (existing dwellings, existing commercial properties, public buildings and new build homes and commercial buildings.) Therefore EPCs cover all Energy Certificates including Display Energy Certificates (DECs). In her ministerial foreword, Claire Perry states “EPCs have the potential to do even more” they want to have suggestions on “ways they might be further improved, extended or streamlined”. The aims of the Call for Evidence are: 1. To gain evidence on how the current EPC system is working 2. To gather information on the suitability of the current system of EPCs for both their current and emerging uses in measuring building energy performance 3. To obtain feedback on suggestions for improvement. The call for evidence provides focus in three main areas: Quality The Government want to ensure that EPCs contain good quality data which is reliable, accurate and up to date. The call looks for ways to further improve this vital component. Elmhurst has always campaigned for good quality energy assessments. We stress the need to look at the definition of quality; according to ISO “one can say that a product has good quality when it ‘complies with the requirements specified by the client.” We believe that quality is made up of many facets, and that what each and every ‘stakeholder’ of EPCs expects has been the main issue of quality. In terms of delivering quality, this revolves around items such as expectations, methodologies, conventions, training, and assessors interpretation of all of them! To help form a quality framework, Elmhurst worked very hard with the other schemes and MHCLG to implement a new set of Scheme Operating Requirements. SAP10 and SBEM are looking at introducing new technologies into the methodologies ahead of the next update, and the Government are looking at more triggers to ensure they are up to date! We believe the main issue is that some stakeholders do not realise the difference between an asset and an operational assessment; and that this needs to be clearly defined and allow assessors to provide both. Thus Energy Certificates can be for the building (standard assumptions) and can be for the occupants (using real lifestyle information). If we get this correct, these misunderstandings can be cleared up – giving the expectations back to the stakeholder.
We know that the vast majority of Energy Certificates are accurate and within the tolerance set by the SORs. Encouraging Action 25 years ago Elmhurst started creating energy reports for homes which was a direct call to homeowners to tell them how they could save money by making their homes more efficient. We sit in 2018 and feel that energy assessors have had their hands tied for far too long, in terms of using the EPC to encourage families and building owners to live and work in warmer and cheaper to run buildings! Minimum Energy Efficiency Standards (MEES) Mortgage lending based on EPCs, and setting targets for all homes, is a great start, we just need to see more policy and action. Availability Enforcement has been extremely weak in our sector, however, we are starting to see ‘enforcement by stealth’ with MEES in the private rented sector. As other professionals are starting to get involved, MEES has made lenders concerned of lending on ‘toxic debt’ and Solicitors are protecting consumers! We need more of this in our opinion, so it is not all left to local weights and measures. Suggestions such as log books and whole house plans are excellent ideas, and need to be built on; there has also been many consultations since the Clean Growth Strategy, where Elmhurst have suggested more triggers for the use of Energy Assessments and EPCs across all building types. Many will know that we advocate a ‘Carrot’, ‘Stick’ and ‘Noise’ approach to all Government policies, without all three, the policy will not work.
Elmhurst will be responding to this call for evidence in due course and we encourage our members and wider industry to do so to. The upcoming conference will provide an ideal platform for energy assessors in all strands to voice their own views and opinions on this important call for evidence. Our aim is to use this feedback to develop a stronger response to the call for evidence, combining the views of Elmhurst and its membership. All members are encouraged to download and read this important document at their earliest convenience and start preparing for how they might wish to respond before the closing date on 19th October. Link to call for evidence: https://www.gov.uk/government/ consultations/energy-performance-certificates-in-buildingscall-for-evidence Energy Matters / Conference Edition
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ABOUT OUR CONFERENCE SPEAKERS As part of the conference we have invited a range of industry experts to speak at the event including directors from Elmhurst Energy, TrustMark, CABE and EST. Stephen O’Hara- Chairman of Elmhurst Energy Stephen O’Hara will be talking through Elmhurst’s 25 year journey within the energy and buildings industry. Energy efficiency in buildings is a subject that Stephen feels passionately about, including providing an authoritative role for energy certificates within the industry. Martyn Reed- Managing Director of Elmhurst Energy Martyn Reed has been with Elmhurst for over five years. As a Chartered Building Engineer, Martyn has a keen interest in the field of energy efficiency and has been heavily involved in high level talks with government and influential bodies over the past few years. Martyn will be presenting on the Clean Growth Strategy. Stuart Fairlie- Technical Director of Elmhurst Energy Stuart Fairlie joined Elmhurst in the mid 90s, at what can arguable be described as the ‘turning point’ of building energy efficiency and its cementing into law. As a veteran of the industry, Stuart has helped shape successive energy modelling methodologies and software applications, most recently lending his expertise to the newly updated Scheme Operating Requirements. Stuart will be heading up the talks and discussions on the recent call for evidence.
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Dr Gavin Dunn- CEO of the Chartered Association of Building Engineers (CABE) Previously a Group Operations Director at Elmhurst, Executive Director of BRE, and a current member of the UK Building Regulations Advisory Committee (BRAC), Gavin is a very well known and influential figure in the industry. Throughout his career, he has been committed to raising building standards by helping create effective regulations and driving change. His knowledge of Building Regulations is second to none, which makes him well placed to present on this topic at our conference. David Weatherall- Head of Policy at Energy Saving Trust (EST) David Weatherall is Head of Policy at the Energy Saving Trust and has worked for fifteen years on policy to encourage governments to introduce a strong and effective policy framework around home energy efficiency. He is committed to maximising the value of EPCs for homeowners and for the energy efficiency industry and has worked extensively on policy and programme development to achieve this. He also has a global perspective: he developed and worked on two major European projects to improve EPCs and earlier this year was funded by the EU and UK Governments to advise Canada on launching an EPC system. David has served on several government stakeholder committees for BEIS, DECC and MHCLG on issues
relating to housing and energy, including building regulations, the Green Deal, the Code for Sustainable Homes and the Bonfield Review. Simon Ayers- Chief Executive of TrustMark Simon Ayers’ career runs into the best part of 30 years in energy, construction and related sectors. He is currently the Chief Executive of TrustMark, which helps connect consumers with competent, vetted tradespeople to work in or around their homes. Simon is currently navigating TrustMark through these changes as an organisation, helping to develop a level playing field of government endorsed quality for any home improvement, as well as driving continual advances in cross-sector standards. Simon will be presenting on Each Home Counts (EHC) and PAS 2035.
AGENDA 10:00 - 10:30 - 10:30-10:45 - 10:45-11:05 - 11:05-11:35 - 11:40-11:55 - 12:00 - 13:00 - 13:00-13:40 - 13:40-14:10 - 14:10-14:40 - 14:40 - 15:00 - 15:00-15:30 - 15:30 - 17:00 -
Registration (refreshments available) Welcome and introductions, 25 Years of Elmhurst Energy -Stephen O’Hara The Clean Growth Strategy -Martyn Reed The ‘Energy Performance Certificate in Buildings, Call for Evidence’-Stuart Fairlie The EPC in Buildings Call for Evidence, Q & A - Elmhurst Energy Hot fork Buffet Lunch, and Refreshments Building Regulations and EPCs- Gavin Dunn (CABE) Fuel Poverty -David Weatherall (Energy Saving Trust) Each Homes Counts and PAS 2035 - Simon Ayers (TrustMark) Break for Refreshments Q & A panel and round up - All Speakers Exclusive 25th Anniversary Drinks Reception
Full agenda available from www.elmhurstenergy.co.uk/elmhurst-energy-conference
FEATURE
ELMHURST’S JOURNEY SO FAR... This conference marks a momentous occasion in Elmhurst’s 25th year, bringing together industry professionals in England and Wales to discuss the future of energy assessment and the industry. However, it is difficult to ignore all that has happened thus far, as highlighted within the timeline below.
Organic farmer and successful businessman Rod Pattison created a way to measure the energy efficiency of buildings. He was passionate about green technology and wanted to show people how much they could save on energy bills. So he and Bob Love created Elmhurst Energy, which was named after and operated from Rod’s organic farm in Warwickshire.
1993 Mid
90s
Elmhurst set up a home buyer product/survey at the request of Nationwide Building Society, who wanted an energy rating service which provided quick energy assessments for house sales. The surveying arm of Nationwide eventually split from the core business and became Countrywide Surveyors, which was led by Peter Hales - Elmhurst’s first customer and now chair of our Oversight Board. Elmhurst trained countless chartered surveyors to use their Streamline software and methodology, working for big name clients.
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BRE’s Standard Assessment Procedure was first cited in Part L of the Building Regulations (England & Wales) as a means of assessing a dwelling’s energy performance, and Elmhurst took this opportunity to provide Building Control Bodies with the relevant training and software. From this would come the first energy assessments for new build homes and the very first version of Design SAP Software.
1995 2002
Elmhurst was thrust to the forefront of the industry when the Energy Performance of Buildings Directive (EPBD) from the EU stated that all member states had to measure the energy efficiency of buildings. In essence, they needed a measuring stick. The Federation of Authorised Energy Rating Organisations (FAERO) which included Elmhurst Energy, NHER and MVM Starpoint (Northgate), worked alongside BRE to develop a universal solution for existing properties. Together they developed Reduced Data Standard Assessment Procedure (RdSAP) which took the best parts of Elmhurst’s and NHER’s software.
The first standardised methodology to calculate the energy efficiency of homes in the UK, known today as RdSAP was introduced to the industry. RdSAP has revolutionised energy efficiency standards for domestic dwellings across Europe and forms the basis of Energy Performance Certificates (EPCs) - 18 million of which have been produced to date! With the introduction of RdSAP and the requirement of EPCs to meet EPBD legislation, Elmhurst began training hundreds of individuals to become Domestic Energy Assessors (DEAs) at their new offices in Leicestershire and nationwide. Qualified assessors were registered to Elmhurst’s DEA accreditation scheme.
2007
Elmhurst has continued to grow within the energy assessment industry and, with the acquisition of BRE, Northgate and NHER, is now the UK’s largest accreditation scheme for Energy Assessors, with over 7,000 members producing over 600,000 EPCs per year. Elmhurst continues to support and campaign for a sustainable industry for energy assessors and aims to ensure that energy efficiency is always at the forefront of the political and business agenda.
2018
2008
By the end of 2008 all homes and non-domestic buildings, when sold, built or rented, required an EPC. Display Energy Certificates (DECs) were also introduced as a requirement for buildings occupied by public authorities. A building which had a total floor area over 1,000m2 and was frequently visited by the public would require a DEC (these requirements were altered in 2015).
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Elmhurst Energy: Scotland Conference November 2019 November 2018 REGISTER YOUR INTEREST >
Featuring speakers from Energy Saving Trust (EST) and Scottish Government More details to follow
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