Memorandum submitted by the Mark Group
(FP 37)
INTRODUCTION
The Mark Group welcomes the Committee's call
for evidence on fuel poverty which is particularly timely given
the Government's current consultation on extensions to the Carbon
Emissions Reduction Target and the introduction of Feed in Tariffs
for small scale renewable energy.
In responding to this call for evidence, we
have restricted our response to areas of interest in which we
operate We would be happy to provide further evidence to this
inquiry, either written or in person if a more detailed perspective
is required.
The Mark Group is a nationwide company, with
over 1,400 employees, dedicated to delivering a "whole house"
solution to energy efficiency.
We help make over 6,000 homes more energy efficient
every week from our 14 regional locations. Our portfolio has expanded
in recent years to include an increasingly popular and proven
range of energy saving products and microgeneration. Our services
are tailored for individual homeowners as well as builders, architects,
local authorities and government bodies.
— Mark Group has installed over 1 million
energy saving measures in the UK since 1974.
— In the last five years alone, our activities
have saved around 1.25 million tonnes of CO2 and substantial energy
cost savings in homes and other buildings in the UK.
THE COHERENCE
OF GOVERNMENT
INITIATIVES ON
ENERGY EFFICIENCY
We look forward to the publication of the Government's
Home Energy Management document, which promises to draw together
a range of energy efficiency initiatives into one overarching
strategy. However, we are concerned over the delay in publishing
this strategy, originally due for publication before end 2009,
and then subsequently delayed to January 2010.
The range of initiatives to support energy efficiency
and microgeneration would benefit from consolidation in order
to reduce costs and complexity in the supply chain. An illustration
of this complexity is demonstrated below. We are already providing
energy efficiency and renewable services through the following
Government schemes this year:
1. Carbon Emissions Reduction Target:
(a) Priority Group.
(b) Super Priority Group.
(c) Non-Priority Customers.
2. Community Energy Savings Programme.
4. Pay as you Save Trials.
6. Residuals from Low Carbon Buildings Programme.
8. Enhanced Capital Allowances.
9. Carbon Reduction Commitment.
THE METHODS
USED TO
TARGET ASSISTANCE
AT HOUSEHOLDS
THAT NEED
IT MOST
In targeting hard to treat homes, it is essential
that the insulation of the property is improved as a first step,
with the second being improvements to and correct sizing of the
heating system. In practice, this would mean that the first measure
has to be Solid Wall Insulation plus any loft insulation Only
then should a heating measure be applied; either Gas Condensing
Boiler (ongrid) or Heat Pump off grid.
We are concerned that tools used to target the
neediest households have been harmed by a lack of flexibility,
and or understanding of the changes that make the biggest difference
to fuel poor homes.
Professionally installed insulation (cavity,
loft or solid wall) should always be the starting point for reducing
energy bills. Previous iterations of the energy supplier obligation
have allowed mass distribution of CFL lighting, DIY loft insulation
and other non-installed measures at the expense of installed options.
The Carbon Emissions Reduction Target has achieved delivery of
insulation to over 2 million households in the first eighteen
months, but it could still do more.
We were pleased to see that the Government has
proposed a minimum proportion of insulation measures in the extension
to the Carbon Emissions Reduction Target (CERT+), and to promote
Solid Wall Insulation through the Community Energy Savings Programme.
It is however, vital that the minimum proportion of insulation
measures in CERT+ be increased from 65% to 70%, a figure that
the supply chain has more than sufficient capacity to deliver.
SUPPORT FOR
HOUSEHOLDS WHICH
ARE NOT
CONNECTED TO
THE MAINS
GAS GRID
Sustainable heating options alongside insulation
are vital if the UK is to provide effective support to fuel poor
homes off the gas grid. Annex 1 provides an example of the benefit
to off-grid properties in installing these solutions.
The Renewable Heat Incentive (available from
April 2011) could provide an effective new funding stream for
renewable heating. Payment of an annual reward for heating your
home by renewable energy could make renewable heating economically
viable for many households who must balance up-front investment
against payback through heating bills. However, a substantial
amount of capital investment is still required and those living
in fuel poverty are less likely to have access to such finance.
It is essential that the Renewable Heat Incentive
(currently under consultation) allow home occupiers to assign
rights to the annual RHI payment over to third parties. Adoption
of this approach would reduce the credit risk to parties willing
to lend capital for investment in renewable technologies, in turn
lowering overall costs. Ensuring that homes without access to
capital and/or low credit rating benefit from the RHI should be
a core ambition for the scheme.
Finally, we hope that the RHI will be administered
effectively and speedily. It would clearly be damaging for individual
households affected and for confidence in the scheme overall if
payment and administrative delays occur. In this respect, we have
some concerns over Ofgem's (the Government's preferred delivery
partner) relative inexperience in managing these kind of payments
to consumers.
February 2010
Annex 1
CASE STUDY
The D'Amery Family
August 2009
The D'Amery family live in a Victorian School
house near Northampton, built in 1876 with a large two storey
extension added in 2007. The property is off the gas network.
The Challenge
The property was in need of some renovation
as well as the addition of the extension, so the D'Amery family
were after a solution to aid a poorly insulated house, heated
via oil. After consultation with the Mark Group on available insulation
products, it became clear that an inclusive approach would be
needed and further cost and CO2 reductions could be achieved by
looking at renewable technologies.
Mr and Mrs D'Amery challenged the Mark Group
to find the solutions to make the family home as environmentally
friendly and energy efficient as possible and become less reliant
on oil and its fluctuating price.
The new insulation, heating and hot water system
not only had to have the potential to reduce the family's carbon
footprint but also dramatically reduce the running costs of the
property. The Challenge was to provide an energy efficient "Whole
House" approach.
The Solution
After surveying the property, loft and cavity
wall insulation products were recommended to the family as a starting
point to save money and energy in the home, along with low energy
lighting and energy efficient appliances to maximise the "Whole
House" approach.
An Air Source Heat Pump was suggested as the
most appropriate renewable technology as a great low carbon alternative
to a traditional boiler, which can reduce CO2 by up to 50%. Mark
Group suggested the Mitsubishi 8.5kW Ecodan Air Source Heat Pump
would be the ideal solution.
The Air Source Heat Pump system was scoped to
run a combination of new underfloor heating and existing radiators,
which were checked for size. The domestic hot water system was
sized to provide plenty of hot water for the growing family as
well as additional capacity for visiting extended family.
The external Ecodan unit was originally installed
in front of the house on a temporary basis in December 2007. This
was to enable their builder to de-commission their old oil boiler
and begin on their extension project, whilst enabling the family
to remain in the house. Once the ex-tension was in its final phase,
the Mark Group returned to relocate to its current position in
the back garden and re-commission the system. The Air Source Heat
Pump system took three days to install and was completed with
minimum disruption to the family. The Mark Group installation
team worked with the builder to ensure this.
Before leaving the D'Amery's home, the technicians
ensured that the family were fully trained in operating the system
and were satisfied with the installation.
Funding Information
The family received a grant from the Low Carbon
Building Programme Phase 1 (now closed) for £900 which went
towards the cost of the Air source Heat Pump. Mark Group guided
the family through the application process for this grant.
Customer Benefits
The D'Amery household have doubled the footprint
of the horne with the new extension but with the help of the Mark
Group they have reduced their running costs and C02 emissions.
An additional benefit has been a far more convenient system, with
no more refilling of the old oil tank.
The savings so far ...
The family have overcome their reliance on oil
and saved around £1,600 in oil bills a year. They have had
an increase in their electricity bills from £90 to about
£145 per month This equates to an overall aggregated.
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