Energy Matters 2019 Edition 1 by Elmhurst Energy

ENERGY MATTERS 2019 - EDITION 1

ELMHURST’S MANIFESTO FOR 2019

COMPETENCY SCHEMES WITH ELMHURST

2019: REASONS TO BE POSITIVE

ESOS PHASE 2 OFFICIALLY UNDERWAY Energy Matters / 2019- Edition 1

FOREWORD M A R T Y N R E E D, M A N A G I N G D I R E C T O R

Welcome to another edition of Elmhurst’s publication, Energy Matters. It is clear that we are living in times of change and whilst the politicians try to work out what leaving the EU actually means, the rest of us are still trying to run our businesses and, for those involved in energy efficiency, save energy, money and the environment. Despite the political chaos, 2018 was actually a good year for many of us involved with energy efficiency.

Energy Matters / 2019- Edition 1

The two biggest improvements came from Private Rental Sector / Minimum Energy Efficiency Standards (PRS/ MEES), and as a consequence of the tenth anniversary of EPCs: Private Rental Sector / Minimum Energy Efficiency Standards There has been plenty of discussion about MEES in England and Wales since its announcement in 2016. As the first major deadline approached in April 2018 (after which time it was illegal to rent a property with an EPC lower than an E), we were aware of the loophole that had been created when Green Deal failed to gain traction. However, good news came from a consultation issued in December which proposed that landlords of privately rented residential properties should be required to fund improvements to an EPC F or G rated property up to a suggested £3,500 (incl. VAT) per property.

Tenth anniversary Some of our members will remember 2007/8 as being the year that EPCs were launched. Therefore, 2018 marked their tenth anniversary and whilst we’re unsure of what uplift that might give to the volume of new EPCs being lodged, our analysis shows it to be significant.

The reality is that many properties will need more than £3,500 spent to achieve an E rating or above but it’s a start and we believe it will give MEES the boost it needs to get the poorest tenants out of fuel poverty.

There may be some enthusiastic environmentalists out there who got their EPC reissued simply because the previous one expired, but I suspect others were reissued because the property hit an EPC trigger point (e.g. being placed on the market for sale or rent) and the existing EPC had expired.

The deadline, and the promised tightening of the loophole was enough to make many landlords react. In both the non-domestic and domestics sectors we have seen a significant increase in the volume of lodgements relating to rented properties which has kept many of our members very busy.

If that is the case then this is good news for energy assessors since the demand for EPCs will continue to rise as old EPCs expire. This is also an excellent illustration of why the validity period needs to be reduced to ensure home buyers and tenants are not misled by property information that could be up to 10 years old.

The future looks bright too. In October 2017 the Government’s Business Energy & Industrial Strategy (BEIS) department issued the long awaited ‘Clean Growth Strategy’ which established a way to a low carbon future for the UK. Whilst we haven’t seen too much policy coming from the strategy there is evidence that change is coming. We are also expecting a change to building regulations in 2020 which, unless it is a significantly bigger change than what we have seen previously, will need to be followed by two more changes before 2030 to achieve targets set by government. One cause that Elmhurst is championing is to reduce the transition period for new regulations. Everyone involved in the new build sector will be aware of new dwellings being completed today that are being built to the relatively low standards of a decade ago. If that is allowed to continue then the true impact of “halving the energy consumption from new dwellings”(a statement made by the Prime Minister in her ‘Grand Challenges’ announcement back in May 2018), will not benefit homeowners and the environment until 2040!

The other bit of positive news is the government’s call for evidence on EPCs, where all indications are that we need more up to date EPCs. Elmhurst spent many days on the response and shared early drafts with members to get their input. Our 23 page response can be synthesised down to nine points which we have published on the latest news area of our website. We are expecting the government’s consultation based on this call for evidence to be released later in the year and then, presumably, changes in legislation will follow. As I said before, 2018 was, compared with recent times, a good year to be an energy assessor. Assuming Brexit gets sorted, one way or another, I am confident that 2019 and beyond will be even better.

FOLLOW OUR LINKEDIN, TWITTER AND FACEBOOK PAGES FOR THE LATEST NEWS AND UPDATES FROM ELMHURST ENERGY

www.twitter.com/elmhurstenergy www.linkedin.com/company/ elmhurst-energy-systems-limited www.facebook.com/ ElmhurstEnergy

I wish all Elmhurst customers and members, my best wishes for a healthy, happy and prosperous 2019. Martyn Reed Managing Director Elmhurst Energy

Martyn Reed Managing Director Elmhurst Energy

Energy Matters / 2019- Edition 1

CONTENTS MAGAZINE

02 FOREWORD 05 TRAINING UPDATE 06 ELMHURST MANIFESTO 2019 08 COMPETENCY SCHEMES WITH ELMHURST ENERGY 10 2019 REASONS TO BE POSITIVE 12 SBEM ONLINE 14 TECHNICAL CORNER 16 MARKET DATA 18 ESOS PHASE 2

Energy Matters / 2019- Edition 1

FEATURE

TRAINING UPDATE M I T E S H N AT H WA N I , T R A I N I N G M A N A G E R

ello and welcome to a new year that will hopefully bring plenty of opportunity for energy assessors and others who work within the energy ratings industry.

With our constant efforts to ensure we remain at the top of our game in terms of training, we have introduced more new courses, expanded our range of online webinars, and also introduced three new competency schemes, to ensure that our delegates and members are ready and able to offer their customers an all-round property assessment service.

Our collaboration with other industry experts has also flourished and grown; partnerships with the likes of LABC, CABE, NHBC and Design Builder have been joined by NICEIC as well as others. Overall, we are planning to top what was already a great year with an even better one. That said, I just wanted to thank you all for your continued support and hard work in making our courses and competency schemes a great success. Remember to keep an out on our website and training calendar for new courses, webinars and CPD Roadshow events at a location near you.

Our CPD training courses have also ventured further afield over the last 12 months, with a successful Scotland and South of England Roadshow having filled the gaps for assessors, who in the past, have struggled to get to either Lutterworth or one of our other regional venues. Such was the success of these Roadshows, that our trainers will be back out there in 2019. Look out for us in Scotland in March, the South of England in May and North of England in July. As mentioned previously, we have also ventured into new areas and launched exciting new competency schemes Ventilation, Air Tightness, and Thermography. Energy Matters / 2019- Edition 1

MAIN FEATURE

ELMHURST’S MANIFESTO 2019 M A R T Y N R E E D, M A N A G I N G D I R E C T O R

or the last six years Elmhurst has developed a manifesto which we believe underlines the highest priority actions for government and industry to reduce fuel poverty, energy consumption and our impact on climate change. By documenting our views it provides focus for the year ahead on which we 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 Growth Strategy were both things that we had asked government to introduce, so maybe our efforts were rewarded.

Our seven point Manifesto includes:

Energy Matters / 2019- Edition 1

1. Industry should work together to drive up the quality of Energy Certificates Government has shown commitment to Energy Certificates with the “Clean Growth Strategy”, and with “Energy Efficiency Scotland”, because they realise their value and the improvements they can help deliver.

2. All new buildings should achieve at least the level of energy efficiency performance defined in the current Building Standards and Regulations. The Government should ensure that the transition of new Building Regulations occurs swiftly to ensure that new homes are always built to current regulatory standards.

Industry, and by that we mean those that develop the methodologies, assessors and accreditation schemes, must do all they can to protect that good reputation by continually improving the methodologies and by investing in new tools, systems and training. Quality control processes must be robust and for those individuals and companies that cannot, or will not, adhere to the rules, they must be held to account.

Transitional periods applied to new regulations can result in homes being built to outdated and lower standards than the current regulations require. Government has committed to ensure that new homes built in 2030 are using half the energy of those being built today, but unless transition times are reduced this will significantly increase our carbon emissions for many more years to come.

3. The current Energy Certificate is not fit for purpose. With many homes now being purchased without a mortgage, and many buyers choosing not to have a home condition survey, sometimes the only independent assessment is the Energy Certificate and, unbelievably, some homeowners make their purchase decisions based solely on what it says. The assessment that leads to an Energy Certificate uses processes and conventions relevant for an energy assessment, nothing more. Government must ensure that Energy Certificates clearly state the conditions in which they can be relied upon. Over the last ten years the format of the EPC has become an ugly mix of great information spoiled by technical jargon and bureaucratic warnings, much of which relates to long passed policies and initiatives Now is the time to review the format of the EPC to ensure that it fulfils its potential as a catalyst for improvement. 4. Energy Certificates always reflect the current state of the property. An Energy Certificate is valid for up to ten years by which time the energy costs and savings available will certainly have changed, but so will the property itself with incremental improvements such as the installation of a new boiler or replacement windows. Elmhurst believe that the Energy Certificate should be re-issued whenever there is a change that impacts upon the energy performance of the building and, to reflect current fuel prices, an Energy Certificate should lapse after one year to ensure that estimates and recommendations are relevant. 5. Ensure the quality of energy assessments undertaken for planning and Building Regulations compliance. The planning and Building Regulations process requires a prediction of a

building’s energy performance at the design stage, before construction starts. It is critical that the quality of such predictions are equal to those used for producing the Energy Certificate, which means that they should only be undertaken by accredited energy assessors whose activities are overseen by an approved scheme. 6. Energy Certificates and Energy Certificate data should be open access for use by all stakeholders The ‘Clean Growth Strategy’ and ‘Energy Efficient Scotland’ publications both establish targets for energy efficiency. For this to occur stakeholders require streamlined digital solutions that work efficiently with their business processes.

Elmhurst welcomes the advent of open data and believes that the register should be opened up to allow all users with a legitimate need, to access Energy Certificates and additional key energy efficiency data that they contain. 7. Energy Certificates for all buildings No building should be exempt from requiring an Energy Certificate to allow ready comparison between buildings and to identify opportunities for improvement. Energy Assessors should have tools available to modify recommendations depending on the building type and the expectations of the homeowner.

We believe that the current restrictions which impact the use of Energy Certificate data requires an overhaul. On one level it is difficult for businesses such as estate agents and landlords to access Energy Certificates in an efficient manner, meaning that many create their own A-G graphs which may, or may not reflect the Energy Certificate. Yet, the release of Open Data puts many of the inputs collated to create an Energy Certificate in a format which is easy to access and integrate, with little or no restriction. Energy Matters / 2019- Edition 1

FEATURE

COMPETENCY SCHEMES WITH ELMHURST ENERGY JENNIFER HARTLEY, COMPETENCY SCHEME COORDINATOR

lmhurst Energy offers Competency Schemes for individuals who are seeking new opportunities and a high quality standard of work within the built environment.

Our newest Competency Schemes are intrinsically linked to assessing and measuring the build quality of homes. The knowledge and skills provided from our scheme training courses allows energy assessors and other property professionals to not only extend their current technical competence, but also expand their existing services. Members of Elmhurst’s Competency Schemes can demonstrate extended knowledge of testing and inspection to clients, having been subject to rigorous training and assessment. Most if not all of these schemes offer the following benefits: • Access to Elmhurst’s expert technical support • Entry onto Elmhurst’s Scheme listing • Access to Elmhurst’s members’ portal, where Inspectors/Assessors can download technical guidance documents, submit reports and retrieve certificates • Automatic cover by Elmhurst’s insurance policy

Energy Matters / 2019- Edition 1

Elmhurst recently announced the launch of its Thermography and Ventilation Competency Schemes. These schemes are open to all energy assessors and professionals working in the built environment who are qualified to complete thermal imaging inspections and domestic ventilation inspections. Thermography Scheme The Thermography Scheme offers credibility and quality standards for qualified Thermal Imaging Inspectors, who provide infrared thermography for building surveys. Infrared thermography is increasingly being requested by property developers and contractors to check build quality, and establish the root of any thermal anomalies or defects within the building fabric that could result in unwanted heat loss. This technology enables qualified inspectors to identify areas of missing or damaged insulation in a non-intrusive manner, and identify areas of heat loss due to air leakage. Infrared thermography can be used in both existing and new build properties.

Approved Thermal Imaging Inspectors have the skills and knowledge to thermally inspect/assess dwellings and commercial buildings against a pass/fail criteria. Using a quantitative procedure inspectors are able to present the thermal condition of a building envelope to clients using traffic light indicators for effective visual impact. Members of the Elmhurst Thermography Scheme will benefit from a significant competitive advantage due to the consistency and quality of their building thermal imaging surveys. Moreover, members of the scheme can drive up industry standards through the reliability and quality of their services.

Ventilation Scheme The Elmhurst Ventilation Scheme provides quality standards for individuals who are trained to provide testing and commissioning for domestic ventilation systems against Part F of the Building Regulations. Approved Ventilation Inspectors have the technical skills and knowledge to assess and verify the supply and extract rates of ventilation systems within new dwellings. Part F of the England and Wales Building Regulations requires that all ‘purpose-provided’ ventilation, which includes Mechanical Ventilation and Heat Recovery Systems as well as intermittent extractor fans, are tested to ensure they are operating efficiently and are fit for purpose. The Air Flow Rate Testing and Commissioning results must then be submitted to Building Control, which contributes to the overall building compliance process. Poor ventilation can result in a buildup of unnecessary condensation, damp and mould which can not

only damage a home but also pose a serious health risk to occupants. “With developers constructing properties which are more air tight, dwellings will need quality ventilation systems in order to reduce the risk of damp and mould build up. This trend will result in greater demand for Ventilation Inspectors, to provide a route to Part F compliance,” explains Stuart Fairlie, Technical Director for Elmhurst Energy. The demand for energy efficient homes continues to increase, and with this comes a greater need for energy performance measurement. Elmhurst Energy members are well placed to provide those services for house builders and developers.

For more information about the Competency Schemes that Elmhurst offers please visit our website www.elmhurstenergy.co.uk or call the support team on 01455 883 236.

If you are already trained and qualified as a Thermal Imaging Inspector or a Domestic Ventilation Inspector, you can join the Competency Schemes by simply completing an application form available via our website: www.elmhurstenergy.co.uk.

Energy Matters / 2019- Edition 1

FEATURE

2019: REASONS TO BE POSITIVE S T U A R T FA I R L I E – T E C H N I C A L & O P E R AT I O N S D I R E C T O R

e all recognise that 2019

is another potentially turbulent year in politics and at the time of writing Brexit was never far from headline news. But here at Elmhurst we are looking forward to the year ahead and the opportunities that will occur for our Industry. I promise not to mention Brexit again!

Firstly, Government’s clear ambitions on energy and climate change are now in writing within the Clean Growth Strategy, and for Scotland in the Energy Efficient Route Map and Climate Change Plan. These documents detail ambitious targets for EPC banding for homes and businesses throughout the UK over the coming years. In December 2018 in Katowice, the UN reached an agreement on how to implement the Paris 2015 Climate Accord. This means much more focus is required on standards and policy in energy efficiency in the UK. The 2032 pathway (inside the Clean Growth Strategy) was an open admission by Government that emissions are increasing and some new policies are urgently required. The uplift occurred at the same time as the ‘bonfire of regulations/ energy efficiency policies’ during the Cameron/Osborne government. Also in December, Housing Secretary James Brokenshire, confirmed that the Government is taking forward every recommendation in the Hackitt Report into new build regulations

10 Energy Matters / 2019- Edition 1

which is likely to mean a greater role for independent specialists, who will be accountable for the work that they do. During 2018 an unheralded ‘Grand Challenge Buildings Mission’ was launched by the Prime Minister, which sets a target to “halve energy use of new buildings by 2030” and “halve the costs of reaching the same standard in existing buildings too”. Throughout last year we were told on a number of occasions, all new polices will be looked at ‘through the lens’ of these statements. With this in mind the Government is gearing up for a new Part L in 2020 for England and Wales. Scotland is also gearing up for the challenges within their Building Standards. We want to see Part L (conservation of energy) and Part F (ventilation) work in tandem, to ensure that buildings with good energy efficiency and air tightness, continue to be good homes/buildings to live and breathe in. The unintended consequences of these parts not working together has been poor air quality, and moisture and damp, as well as overheating

in warmer months. We recognise the ‘performance gap’ which is the difference between modelling expectations and what ‘as built’ performance is. There are a variety of reasons for this and Elmhurst will advocate for (at the very least) ‘design stage’ submissions, amongst other sensible contributions to the consultations this year. With Part L of the Building Regulations (E&W) we will start to see consultations and information on direction later in 2019 ahead of a 2020 regulations change. We will certainly know more and will distribute this to members when available. Each Home Counts and its main publication the PAS2035 document will be completed by April 2019. This is an Industry led solution to this vital market place. It is primarily aimed at the ‘able to pay’ market, but government has committed to ensure all policy around fuel poverty and energy efficiency will use this framework. This will be overseen

by Trust Mark. Elmhurst has been working alongside Industry to develop PAS2035 and we look forward to seeing the final outcomes.

Green Mortgages are coming back, Barclays and a Help-to-Buy Scheme in Wales were both launched last year. This trend is fully expected to continue making energy efficiency part of lending decisions.

2019 IS A BIG YEAR FOR ENERGY EFFICIENCY RETROFIT OF EXISTING HOMES.

Finally, the Government will also feedback following the call for evidence on EPCs and other consultations from last year, which will hopefully start to drive towards more policies and triggers for EPCs.

Minimum Energy Efficiency Standards (MEES) has some ‘tweaks’ in April to remove the ‘no upfront cost to landlords clause’. It is still illegal to rent a property that is F or G rated. This standard will keep moving towards ‘C’ rated by 2030 in England & Wales. Similar ambitious targets apply in Scotland, where we will see the regulations in 2019 for implementation in 2020 in this sector.

In summary we expect another busy year, with lots of activity. It is clear that Government accepts the need for new polices to start the path back to a cleaner future. Elmhurst and its members are very well placed to meet these ambitions. We may go out of the EU, but the UN Paris Agreement ‘trumps’ this (pardon the pun!). As more professionals are getting involved in EPCs e.g. mortgage lenders, banks, solicitors, Building Control Bodies, landlords, estate and letting agents, this is only good news for our industry. We need to see real polices in order to hit the low energy/carbon targets and a reduction in fuel poverty, this includes 300k new homes needed per annum, which must be built to new better energy efficiency standards. As Elmhurst has said time and time again “if you can’t measure it, you can’t manage it”. We can measure buildings; now we need the action to manage the building stock in better ways. 2019 needs to see policy and action building upon the asset and occupation of all the UK’s buildings. We look forward to 2019 and as usual we will ensure our members continue to be the best informed energy assessors in the business.

Energy Matters / 2019- Edition 1

FEATURE

SBEM SOFTWARE WITH ELMHURST

J O S H U A WA K E L I N G – N O N - D O M E S T I C T E A M L E A D E R

n July 2018 we released SBEM Online to all Elmhurst members and received excellent feedback from new users. It has been developed and designed by assessors for assessors, meaning that the functionality is guaranteed to make

your life easier and hassle free.

Non-Domestic assessors will know that the vast majority of their time is taken up by calculating the geometry of zones and envelopes. However, with our government approved SBEM software, SBEM Online, the greatest benefit is saving time per assessment by reducing the number of inputs and calculations. SBEM Online is a userfriendly online software application which allows assessors to produce Building Regulations UK Part L and Energy Performance Certificates in England & Wales. SBEM Online key features include: • Lodgements can be made directly though the software no requirement to download or install to a computer. • No requirement to store data files as the assessments are stored within Elmhurst’s Members’ Area. • Integration with Landmark - no need to type the address in to the software manually as SBEM Online populates the address via a search function linked directly with the register.

12 Energy Matters / 2019- Edition 1

• Prompts and guidance on conventions which can help with reducing input errors and reduce audit failures. • Only pay per lodgement – no annual licence fees • Building envelopes calculated and inputted automatically based on the zone details. • Technical support for both EPCs and software • Aerial view provided within software Plan View Elmhurst’s SBEM Online software utilises a 2D Plan View which is designed to populate the envelopes of each of your zones by assigning the relevant constructions defined in the project. This means that the envelopes will be calculated automatically by the software depending on the zone details. MEES? The use of SBEM Online is free of charge, which allows you to remodel buildings with recommendations without the need to pay an annual subscription or monthly charge. Many users

have found this useful since the introduction of the Minimum Energy Efficiency Standards (MEES) in helping clients save money and improve their energy ratings to the required standards. Plans for the future? The development of software is always a key factor when ensuring a product remains relevant and successful in the market. We aim to develop SBEM Online into a market leading software for the production of non-domestic EPCs and BRUKL reports. Some of the potential improvements we could introduce include NDEA Convention prompts to reduce audit failures, U-Value calculation software for new build assessments and possibly a more advanced modelling mode to allow assessors to sketch buildings in more detail (in 2D or even 3D).

However, Elmhurstâ&#x20AC;&#x2122;s SBEM Online software has been developed to ensure ease and speed of use. To assist new users further we have set up a webinar tutorial which covers how to use SBEM Online. This will allow individuals to familiarise themselves with the functionality, and experience the advanced features that SBEM Online has to offer.

For more information about SBEM Online Please visit: www.elmhurstenergy.co.uk/ software/sbem-online

Coming to terms with a new piece of software can be challenging.

Energy Matters / 2019- Edition 1

TECHNICAL CORNER

UNLOCKING THE SMART IN SMART METERS DR RICHARD JACK, PRODUCT MANAGER, BUILD TEST SOLUTIONS,

lmhurst is a strong advocate for innovation which is why we work closely with start-up businesses such as Build Test Solutions (BTS).

Established in 2016, the mantra cited by BTS is “what you don’t measure, you can’t manage”. Their goal is to make tools that allow quick and reliable real-world testing and measurement of critical building performance attributes such as U-values, thermal bridging, air leakage, ventilation, whole fabric heat loss and indoor air quality. The team of building physics experts and product engineers at BTS have been quietly working away on a number of technologies which may be employed by energy assessors, building surveyors and many other industry stakeholders that will enable us to better understand the true in-use performance of our homes, offices, commercial premises and public buildings. One particularly exciting project started by BTS in 2018 has been to develop a means of measuring whole building fabric heat loss (also known as a heat transfer coefficient or HTC). This is done by combining internal and external temperature sensor data with gas and electricity consumption

14 Energy Matters / 2019- Edition 1

data from smart meters. With such measurement, better understanding and feedback can be provided to help consumers, energy suppliers, providers of energy efficiency products and services, as well as policy-makers, to save energy and reduce bills and carbon emissions. This is important because of the ‘performance gap’, where the actual thermal performance of buildings is typically worse than predicted. The size of the performance gap varies from building to building, but is frequently significant, with measured heat loss measuring up to twice what was predicted in some cases. This underperformance can lead to additional heat loss and energy use, high heating bills and unidentified instances of fuel poverty, and unhealthy internal conditions such as damp and mould growth. Routine measurement of actual thermal performance could identify problematic dwellings for improvement works, and reveal frequently occurring defects to improve the design of new houses and retrofits.

The Government is committed to ensuring that every home and business in the country is offered a smart meter by the end of 2020 and yet the current benefits for consumers are limited to live feedback of gas and electricity consumption and the removal of the need to supply meter readings. However, with a very small amount of additional hardware and a bit of ingenuity, BTS is aiming to make available a product solution that will allow surveyors, industry experts and consumers alike to understand the role that their building fabric and their behaviours play in effecting energy consumption and what can be done to improve efficiency. Another use for the measurements could be for assessing real performance against modelled predictions or for carrying out an assessment pre and post home improvement works. Initial testing and product development is being carried out in partnership with the University of Salford in their energy house and smart meter lab facilities as well as in a wide range of homes

in the field. Therefore the team is always on the lookout for interested field trial participants who may be willing to put forward their smart metered home in return for a free EPC and what should be some great building performance insights. A full commercial product is expected in 2020.

Interested in finding out more or registering for our pilot studies? Please contact: Richard.jack@buildtestsolutions.com or follow BTS on twitter @BuildTestUK

The opinions expressed in this article are of the supplier themselves and not necessarily endorsed by Elmhurst Energy. If you would like to have your product featured here then please email info@elmhurstenergy.co.uk.

Energy Matters / 2019- Edition 1

MARKET DATA

Existing Dwellings

M A R T Y N R E E D, M A N A G I N G D I R E C T O R Volume of EPC lodgements on a 12 month rolling basis

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 of Energy Matters we will provide you with a snapshot of this data, with a brief commentary, which we hope you find of interest and may help you prepare for the future.

16 Energy Matters / 2019- Edition 1

Volume of Residential housesales on a 12 month rolling basis

Commentary • House sales spiked in March 2016 on the back of changes to stamp duty and then quickly fell back to a run rate of about 1.2 million which is where it has been since January 2015. • Volume of EPCs peaked in the 12 months to May 2014, driven in a large part by ECO and to a lesser extent Green Deal. • EPC volume viewed on a rolling 12 months basis, then fell sharply to a low of 1.2 Million in March 2018. • Most recent data shows a bounce back to 1.37 million which is not being driven by residential sales but the boost in demand from the private rental sector, thanks to PRS/MEES, and the impact of the tenth anniversary where some of the older EPCs are now timing out. Outlook • The growth in the market for RdSAP EPCs is very welcome even if it is still nearly half what it was at its peak. • It is difficult to predict whether the ten year anniversary and MEES impact will be sustained but I predict that it will soften slightly and then again settle.

New Build / On Construction

Non Domestic /Commercial buildings

Blue: Volume of residential house starts on a rolling 12 month basis Red: Volume of residential house completion on a rolling 12 month basis

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

Commentary • Commercial property transactions continued to fall from a peak of 128k in March 2017 to 124k in November. Levels not seen since 2016. • The surge in EPCS that started in November 2017, which we believe to be related to corporate investors concerned about the impact of MEES, started to soften in August and has now levelled out at around 99k. Note: Latest quarter data for Scotland is estimated

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

Commentary • Using data up to June 2018, home starts have now settled at 193k, down from the peak of June 2017 when numbers broke the 200k barrier, the level specified by the coalition government when they committed to 1 million homes in the parliamentary term. • Volume of EPCs is at a recent high of 286k. • EPC data, which is up to date as of November 2018, shows that the demand for EPCs continues to rise. This may well be reflected in government statistics on house completions as the surge in new-starts works though the system.

Outlook • The current political turmoil is likely to suppress commercial building sales. I predict that the demand for EPCs will continue to be helped by MEES, albeit the surge has passed, and it will be interesting to observe whether the domestic sector follows a similar path.

Outlook • The volume of on-construction EPCs is at an all-time high but with new starts slowing this may now soften. • It is disappointing that house starts have fallen so rapidly especially with a government suggesting that house building needs to increase to 300,000 and housing charities saying up to 400,000 homes are required every year until 2039. Energy Matters / 2019- Edition 1

FEATURE

ESOS PHASE 2 IS OFFICIALLY UNDERWAY L U C Y D AV I E S , T E C H N I C A L S A L E S C O N S U LTA N T

his New Year was a little different for some businesses, as it not only marked the start of 2019 but also the start of ESOS Phase 2. The qualification date was 31st December 2018, so from the start of 2019 all

those organisations meeting the qualifying criteria must now comply with ESOS Phase 2 before the deadline of 5th December 2019.

ESOS (Energy Savings Opportunity Scheme), is a mandatory government scheme, which aims to increase awareness of energy consumption amongst larger businesses, with a focus on reducing costs and improving energy efficiency. The scheme is presented in ‘Phases’, meaning organisations meeting the qualifying criteria will need to undertake audits of their energy use for buildings, transport and industrial processes every four years. From Phase 1 (2014 – 2015), the qualifying criteria, and the way the audits are completed, remain unchanged. 18 Energy Matters / 2019- Edition 1

The criteria for ESOS qualification is 250 or more employees / annual turnover in excess of €50 million and an annual balance sheet total in excess of €43 million. However, what seems to have changed is how important organisations view ESOS this time around. The scheme stems from an EU Directive and is enforced by the Environment Agency (England), SEPA (Scotland), Natural Resources Wales (Wales), and N.I Environment Agency (Northern Ireland). As a result of UK government reinforcing that ESOS will remain in place, despite Brexit, and the Environment Agency

recently publishing a long anticipated list of all those companies who were non–compliant with Phase 1, compliance with Phase 2 has become a priority amongst businesses. This is not only good news in the strive towards improving energy efficiency and reducing carbon emissions by 30% by 2020 (based on 1990 levels) but also provides an excellent opportunity for Commercial Energy Assessors, with at least 2 years’ experience, to expand the services offered and train to become an ESOS Lead Assessor.

As an ESOS Lead Assessor, you can assist in the analysis of energy data, undertake site visits, and determine appropriate energy saving opportunities. With substantial fines for failure to complete ESOS reports, running into the thousands of pounds, companies are eager to find qualified and professionally competent individuals. Lead Assessors must be a member of an approved ESOS register, which Elmhurst’s government–approved

accreditation scheme operates. Elmhurst’s ESOS Lead Assessor training provides real experience of ESOS assessments/audits, as well as comprehensive technical and non– technical knowledge required by registered ESOS Lead Assessors. Anthony Lane, who works in the Non– Domestic Support Team at Elmhurst, was one of the first ever qualified and accredited ESOS Lead Assessors, and speaks very highly of the scheme:

“I was one of the first ESOS Lead Assessors to be qualified in the UK so have been doing ESOS related work for 5 years. Phase 1 was very new to both ESOS Lead Assessors and to the companies who had to comply, which is why there was some leniency when the deadline date came about. Companies were given additional time to collate their energy consumption data and submit their energy saving opportunity audits. The regulatory bodies have made it clear this won’t be allowed for Phase 2 as companies have been given plenty of time to prepare and find an ESOS Lead Assessor. I anticipate Phase 2 will be a very busy time for ESOS Lead Assessors, as well as allowing existing commercial assessors to branch out in to other areas of the industry, the role is varied and gives you the opportunity to widen your knowledge base, which can lead to even more career opportunities”.

Now the qualification date has passed, companies have less than 11 months to prove their compliance so there does seem to be a sense of urgency and proactive cooperation. We anticipate it will be a very busy and productive year for all those involved in the scheme and we look forward to seeing the results. If you are interested in becoming a registered ESOS Lead Assessors you can find out more about the training that Elmhurst offers at: www.elmhurstenergy.co.uk

Energy Matters / 2019- Edition 1

Elmhurstâ&#x20AC;&#x2122;s Super Software Access to our enhanced U-Value Calculator included Produce professional compliance reports Process large sites in next to no time with Batch Processing To ďŹ nd out more about Design SAP vist: www.elmhurstenergy.co.uk where you can access a free trial.