Energy efficiency and fuel poverty - Environment, Food and Rural Affairs Committee Contents


Memorandum submitted by Kirklees Council, Kirklees Energy Services and Kirklees Warm Zone (EEFP 47)

BACKGROUND

  Kirklees Council has a Green Ambition, which is "To be a beacon of green living in the UK and at a European level and to mainstream sustainability into decision-making". This is a clear statement from Kirklees Council to its partners and the residents of Kirklees that it takes the environment and climate change seriously. The above ambition is being delivered through both an external and internal work programme.

  Since the early 1990's Kirklees Council has taken a lead at a local, regional, and national level on issues relating to the environment and energy. Some notable work undertaken or supported by the council includes:

    —  A Renewable Energy Fund—which has enabled around £4 million of additional funding from the EU, UK Government and private investment to be brought into Kirklees. A sustainability Fund has also been set up to fund emissions reduction initiatives in council projects.

    —  One of the largest local authority solar energy projects in the UK (Suncities) involving 500 households, resulting in 5% of the total UK photo-electric generation in 2006. Six Council care homes and three local schools also have solar panels.

    —  Demonstration wind turbine projects on council buildings—including the first two 6kW wind turbines ever installed on the roof of a council building in the UK, and two 15kW wind turbines at the corporate training centre.

    —  Funding Climate Champions project in Kirklees schools, as a result one school installed their own 15kW wind turbine.

    —  220 solar electricity panels and 48m2 of solar thermal panels on Civic Centre III.

    —  In 2009 Kirklees Council will begin installing intelligent metering into 100 of its buildings, including schools.

    —  Sustainable building policy implemented in 2008. All new council buildings to achieve an energy performance at least 30% beyond current Building Regulations and achieve BREEAM Excellent or Very Good.

    —  A carbon budget as part of the annual finance budget round has been introduced across the council, to drive down emissions.

    —  Under a successful housing PFI bid the authority will deliver 550 units of new domestic build in partnership with a social housing provider. Build commences in 2009 and all homes in accordance with the authority's policy will be delivered to level 4+ of the code for sustainable homes.

    —  Since April 2007 Kirklees Council has waived the fee charged for planning applications for any form of renewable energy technology.

    —  The only UK council to be a member of the UK Emissions Trading Scheme.

    —  The Council has been registered to EMAS since 2000, which means our building energy use and associated CO2 figures are externally verified on an annual basis.

  As a result of the energy and environment work carried out over the last eighteen years Kirklees Council is recognised as being one of the leading national and European local authorities in the energy and environment field leading to a number of prestigious awards.

BACKGROUND TO THE KIRKLEES WARM ZONE

  Kirklees Warm Zone, is a 3 year project which began in February 2007, it is the only Kirklees Council backed insulation project working within the area, it has cross political party support and is plays a key role in delivering Kirklees Council's Green Ambition*.

  The main aims of Kirklees Warm Zone are to:

    —  Increase the energy efficiency of local housing stock—increase the average SAP of 51 to 65 in the private sector (average SAP of social stock is now 75 after the Decent Homes investment).

    —  Reduce fuel poverty.

    —  Reduce carbon emissions.

    —  Improve the health and wellbeing of Kirklees residents.

  Kirklees Warm Zone is unique in many aspects, namely as it is the only scheme offering free Cavity Wall and Loft Insulation to all 171,000 households irrespective of income within the local authority area. This is fundamentally different to previous area based schemes that were only free to priority customers. Currently it is the largest UK scheme of its kind, the Council committed a total budget of £9.9m and Scottish Power agreed CERT funding of £11.1m. Authors are aware that Sheffield City Council will be launching their free scheme in the New Year, significant support has been provided by the authors to Sheffield City Council during the development process.

  Each household will be offered:

    —  cavity Wall Insulation, using Whitewool/Rockwool. We provide each householder with a 25 year CIGA guarantee against their cavity wall insulation;

    —  loft insulation, up to 300mm;

    —  a carbon monoxide detector;

    —  4 low energy light bulbs; and

    —  loft and eave access where required.

  A range of additional services are offered from the following partners:

    —  Through the Energy Saving Trust all householders are offered a free home energy advice pack, by completing a home energy check form, which is integral to the Kirklees Warm Zone assessment form.

    —  Kirklees Energy Services (KES) are the managing agent for Kirklees Warm Zone and other schemes, thereby offering householders the opportunity to be screened for:

      —  Replacement boilers;

      —  Central heating systems;

      —  Renewable technologies;

      —  Measures for Hard to Treat properties; and

      —  Direct referral into the Warm Front scheme;

    —  Miller Pattison is the only contractor working for Kirklees Warm Zone. Through this partnership Miller Pattison have been able to develop a local depot and training centre within Kirklees to recruit and train local surveyors and installers.

    —  Citizens Advice Bureau, The Pensions Service, Revenues and Benefits and Kirklees Benefits Advice Service work in partnership to offer benefit entitlement checks and/or debt advice.

    —  West Yorkshire Fire and Rescue Service offer a home fire safety check.

    —  Yorkshire Water offer domestic water conservation advice.

    —  The Carers Gateway offer support for people who care for friends or family.

    —  Kirklees Council's Private sector housing unit offer free advice and equity loans for properties that do not meet the Housing and health fitness ratings.

  Kirklees Warm Zone will visit all 171,000 homes on a ward by ward basis by autumn 2009 with a nine month mop-up exercise until it finishes on the 30th June 2010. Starting in February 2007 as of November 2008, Kirklees Warm Zone has visited 15 out of the 23 wards and completed over 61,000 household assessments, knocking on 99,630 doors.

  By summer 2010 it is estimated that approximately 53,000 lofts will have been brought up to 300mm, and 35,000 cavity walls will have been filled, with emissions being reduced by 55,000 tonnes in the first 3 years.

KIRKLEES WARM ZONE JUSTIFICATION

  Many householders who fit an "able to pay" category still remain un-insulated/under-insulated regardless of marketing campaigns or reduced price insulation offers. The Kirklees Warm Zone message of "don't come to us, we will come to you" drives the project forward and throughout extensive marketing campaigns, advertising and public relations is able to engage and motivate all householders, priority or able to pay to take up the offer of free insulation (to date, invoiced jobs show an 81% ATP, 19% Priority split).

  By going ward by ward, street by street, house by house the cost of insulation can be significantly driven down. Contractors working on area based initiatives are given a guarantee of a set amount of work over a given period of time, which all supports long-term viability and provides economies of scale which you do not achieve through a targeted approach. Authors estimate that between 10-20% efficiency saving can be achieved for the public purse. Furthermore, an area based universal scheme acknowledges that the UK housing stock is still thermally inefficient compared to northern European neighbours, and only by improving the housing stock universally will the UK be-able to tackle and reduce the incidence of fuel poverty and climate change emissions.

  The free insulation offer also contains a number of significant benefits to the local authority, residents and businesses of the borough, as follows.

    —  Economic—The installation of cavity wall and loft insulation is estimated to reduce the fuel bill by around £100 per measure. Based upon that rough estimate the Kirklees Warm Zone has installed at the end of November 2008 6,763 cavity wall and 15,828 loft insulations resulting in a £2¼M/pa reduction in fuel bills at a cost of £5/M capital spend thereby paying for its self in two years.

    —  Bureaucracy—The cost of bureaucracy is reduced by not having any criteria or means testing. A rhetorical question is; what is the point of going to all that bother to recover £100 for loft or cavity wall installation?

    —  Reduced confusion—The free for all offering back by Kirklees Council brings significant benefits for community cohesion, reducing confusion in householders' minds (which exists with current schemes) and inertia, thereby increasing penetration of the scheme. The current final figure for households to have completed an assessment form is 74.5% at the end of the scheme based upon the Zone meeting future monthly assessment forecast totals than is currently being meet. Authors envisage that the penetration figure will be above 80%.

RECENT FIGURES AS OF NOVEMBER 2008


Referral
% referral based on 59,413 completed assessments


Miller Pattisons for FREE Insulation
82%
Benefits check/debt advice*15%
Carbon Monoxide Detector93%
Low Energy Light bulbs86%
Water Conservation Information18%
Home Fire Safety Check22%
Carers Gateway3%


*The average annual increase per new benefit claimant via Kirklees Warm Zone is £1,556 pa

OTHER QUESTIONS

Hard to Treat Properties

  Currently there is a small budget of £150k to provide specific measures to those properties termed Hard to Treat, in the Kirklees district, however it is recognised that this is quite a significant issue and close partnership work with a range of partners will provide opportunity to apply for further funding, it is anticipated that the funding stream will increase.

  The criteria for the scheme are quite specific:

    The applicant must be a private householder in receipt of means tested benefit or who can be demonstrated to be suffering fuel poverty with household saving of less than £16,000 and living in a property that is Hard to Treat with a SAP rating of less than 40.

KIRKLEES NEIGHBOURHOOD HOUSING—SOCIAL STOCK

  There has been significant insulation and heating investment as part of the Decent Homes work by Kirklees Neighbourhood Housing over the last 10 to 15 years. Kirklees Neighbourhood Housing (which is an arms length management organisation, wholly owned by the Council) and a local housing association have also installed a range of micro generation technologies since 2000, such as solar PV; air sourced heat pumps and solar thermal.

RE-CHARGE

  The Re-Charge scheme builds on previous projects and aims to further increase the number of micro generation installations in local housing. Re-Charge offers homeowners in Kirklees an interest-free loan of up to £10,000 to install renewable or low carbon technologies on their property. The loan is secured to the property by a "second charge" and is repaid when the property changes ownership, the Council pays the interest in the intervening years. By removing up-front costs, this innovative funding model encourages more people to install renewable energy systems.

  £3 million has been allocated to the scheme by the Council over the next 3 years it is estimated that this will benefit around 330 households. Up to 10% of the funds have been ring-fenced to support households in fuel poverty who cannot afford to heat their homes properly.

  The Re-Charge scheme is the first of its kind in the country and has received significant interest at a national level.

  In terms of householder interest in the Recharge scheme, there has been significant interest resulting in the first two years worth on money being allocated from only one small article in the free Council newspaper.

KIRKLEES RE-CHARGE BREAKDOWN YEAR 1

  These figures are up until November 2008.

  Total number of applications: 182.

  Total number of household surveys to date: 71.
TechnologiesHouseholds
PV and Thermal (joint)17
Solar Thermal7
Ground Source2
Biomass2
PV43
Total71


  Installation of the first systems will take place in January in addition to the above figures there are seven wind turbine (6kW) and one micro-hydro installations to be funded out of year two money.

  Please refer to the local government publication "an energy generating democracy—developing successful low carbon economies" for how a £1b national scheme based upon the recharge approach would start to transform the micro-generation industry.

SOURCE OF MONEY

  It should be noted that Kirklees Council sourced no special funding. As a well managed excellent council, Kirklees has power to invest to save and can source capital funds in the order of several million—this is quite normal for example for regeneration schemes.

  At a political level the Kirklees Warm Zone process was unusual in that Kirklees Council is a hung council. This led to competition between the political Parties who all wanted to improve the scheme and its area wide benefits (i.e. benefiting all Wards). Resulting in additional funding being found in a series of private budget negotiations to eventually enable the scheme to be free at the point of delivery.

  Three Parties: Green, Lib Dem, Conservative were involved in these discussions with the Labour party influence being, other private bi Party discussions.

  The nature of this political process is perhaps unique—but all Parties were convinced strongly of the wide benefits of the WZ total district approach with no means testing. So why did all the Parties want to support WZ so strongly?

  Kirklees Warm Zone is unusual in that it offers something akin to a council tax benefit/rebate for up to 2/3 of residents—so the majority will benefit in comfort and financial terms receiving a service of value up to £350 per home. Any Party that is associated strongly with Kirklees Warm Zone thus has a scheme with considerable vote winning potential.

PRIVATE THOUGHT

  The committee are obviously aware of the impending challenges of climate change from both an adaption and mitigation perspective and recent scientific papers in the summer regarding that immediate action is required. Authors of this submission to the committee are categorically convinced that a free door to door scheme should be implemented immediately for the UK to be completed by the end of the financial year 2012-13.

  No other approach will bring immediate cost effective benefits in terms of emission reduction, increased affordable warmth, job creation, reduced health impact, economic benefit and total UK wide citizen engagement on the issue of climate change.

January 2009





 
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