Memorandum submitted by Zenex Technologies
(EEFP 29)
ENERGY EFFICIENCY & FUEL POVERTY
1. EXECUTIVE
SUMMARY
1.1 The most cost effective approach to
addressing fuel poverty issues is to improve the efficiency of
existing energy technologies. However, due to the method by which
appliances are currently measured and assessed for energy efficiency,
there is little incentive for manufacturers to improve the efficiencies
of their products.
1.2 In order to address this issue, the
current assessment methodologies should be revised to reflect
more accurately the true level of efficiency found in a domestic
environment. Additionally, in order to encourage manufacturers
to continually improve their products, the criteria for the highest
category of energy efficiency should be continually reassessed
and the criteria made increasingly more stringent.
2. IMPROVING
ENERGY EFFICIENCY
TO REDUCE
FUEL POVERTY
2.1 Today, there is much emphasis and promotion
of renewable technologies. However, the costs associated with
implementing such technologies are high and reduce the cost-effectiveness
of these solutions. In many situations, the high costs of renewable
technologies render them unaffordable. A cheaper and more cost
effective solution to reducing fuel poverty is to improve the
efficiency of existing technologies to get more benefit from the
same amount of fuel used.
2.2 At this point I shall declare my interest
in this particular field. I represent Zenex Technologies, an innovative
company which has developed a number of products that greatly
improve the energy efficiency of gas boilers for the production
of domestic hot water. At Zenex, we believe that the best approach
to reducing fuel poverty is to improve the efficiency of existing
technologies to allow consumers to use less fuel whilst meeting
their energy needs.
2.3 However, gaining recognition of the
savings that can be achieved is not straight forward despite having
test results from internationally recognised test organisations
such as TNO, TUV and GasTec. Many of the problems can be attributed
to the current method by which gas boilers are assessed and the
ease with which most manufacturers are able to achieve the highest
possible rating for their boilers.
2.4 The current mechanism by which gas boilers
are assessed and rated is a barrier to improving the efficiency
of these appliances. In the case of gas boilers, a modern "A"
rated condensing boiler is typically rated in the order of 91.1%
to 91.5% efficient under SEDBUK. These SEDBUK efficiencies are
used as the basis for SAP calculations.
2.5 However, these efficiencies given to
boilers are unrealistically high and bear little relation to real-life
performance in a typical domestic environment. The boilers are
tested in space heating mode only and under idealised laboratory
conditions which are designed to give the best possible efficiency
figures. There is no test for hot water production. The figures
for hot water production are determined theoretically and greatly
overstate the boilers actual performance that could be achieved
under real-world operating conditions.
2.6 This is publicly acknowledged by a number
of boiler manufacturers. In reality, the efficiency of a typical
"A" rated condensing boiler when operating in hot water
mode is of the order of 80% or less. Thus, a product designed
to improve the efficiency of hot water produced by a gas boiler
is denied at least half of the available savings within the current
SAP framework. Effectively SAP caps the maximum improvement in
efficiency that can be recognised by a product to around 8.5%
even though the efficiencies of new products, measured in real-world
tests, may be well in excess of this SAP-recognised amount. The
result of this artificial cap is to limit the commercial value
of products designed to improve the performance of gas boilers.
2.7 The situation that we have now means
that all "A" rated boilers have now reached the maximum
efficiency that can be recognised and there is no incentive for
boiler manufacturers to continue to improve the efficiency of
their products. The only differentiation between the different
boilers is now price which has resulted in a "race to the
bottom" to produce the cheapest possible product. This eventually
also has a cost implication as the life of these products is shorter
and replacement will be required sooner.
2.8 Measurements made by independent UKAS
accredited testing organisations show that the efficiency of domestic
hot water generation can be improved considerably by using Flue
Gas Heat Recovery Devices. These organisations have demonstrated
that savings of up to 40% are possible. A new category for these
devices has been created within the SAP framework as a result
of the product development performed by Zenex. The Energy Saving
Trust has also added a new category on their Energy Saving Recommended
scheme for these devices. However, the true size of these savings
cannot currently be recognised under SAP because of the unrealistic
SEDBUK efficiency figures that are used as the basis for the SAP
framework.
2.9 A huge amount is achievable by improving
the efficiency of existing technology but in order to do so, the
current energy efficiency rating system needs to be updated so
that it encourages and rewards improvements in energy efficiency.
2.10 Firstly, the true level of efficiency
achieved by appliances in real world domestic environments should
be acknowledged so that the full magnitude of the possible savings
can be recognised. Secondly, the criteria under which appliances
are awarded the highest efficiency categories should be continually
raised in order that manufacturers must continuously improve their
products in order to achieve these awards.
2.11 Without these measures, there is no
incentive for the manufacturers of these appliances—or third
parties—to improve the performance of these products. Energy
which could otherwise be put to good use will continue to be wasted
and consumers will be forced to pay more to run inefficient appliances.
Zenex Technologies
October 2008
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