Select Committee on Science and Technology Written Evidence


Memorandum by the Energy Advice Providers Group of the Energy Efficiency Partnership for Homes

INTRODUCTION

  1.  The Energy Advice Providers Group of the Energy Efficiency Partnership for Homes has established a Domestic Energy Efficiency Advice Code of Practice. The Code of Practice offers a clear framework for advice across the whole of the domestic energy efficiency sector, and we commend it to the Sub-Committee for support and inclusion in their findings.

  2.  This submission addresses the following areas in which the Sub-Committee is interested:

    (i)  The behavioural aspects of energy efficiency schemes—the quality and quantity of information available on energy efficiency, and whether the public is sufficiently knowledgeable and motivated to achieve energy savings.[6]

    (ii)  The funding and co-ordination of research into energy efficiency measures in the domestic and industrial sectors, and how well research is transferred to applications.

BACKGROUND

  3.  The Energy Efficiency Partnership for Homes (EEPfH) is a network of over 250 organisations from the public, private and voluntary sectors. By working together we aim to reduce energy consumed by UK households as well as the number of people who need to spend more than 10 per cent of their disposable household income on energy (the "fuel poor"), in line with the Government's commitment to the eradication of fuel poverty amongst vulnerable households by 2010 and amongst all groups by 2016.

  4.  The EEPfH has 19 Sector Working Groups. The Energy Advice Providers Group (EAPG) exists to improve the quality of advice given to the public about energy use in the home.

  5.  A key achievement of the EAPG has been the establishment of the Energy Efficiency Advice Code of Practice; providing organisations with guidance to ensure they provide high quality energy advice. This submission looks at the supporting evidence for the benefits of providing energy advice, and profiles the Code of Practice.

  6.  The EAPG defines domestic energy advice as that which is "specific to individuals and their circumstances and aims to improve energy efficiency and achieve affordable warmth". This can involve some or all of the following activities:

    (i)  Gathering information from customers;

    (ii)  Diagnosing the customer's problem;

    (iii)  Explaining options to solve the problem(s);

    (iv)  Recommending further action that customers can take to improve energy efficiency;

    (v)  Accessing information about specific products;

    (vi)  Accessing information about specific energy efficiency measures;

    (vii)  Completing home energy assessments;

    (viii)  Making referrals to other organisations;

    (ix)  Demonstrating how to use energy efficiency measures to gain maximum benefit; and

    (x)  Advising customers on energy efficient products.

    Energy advice does not include the distribution of leaflets and other general information.

DOMESTIC ENERGY EFFICIENCY ADVICE CODE OF PRACTICE

  7.  The Domestic Energy Efficiency Advice Code of Practice was developed in response to the Benefits of Advice Research by EAPG (see below), with cross-industry consultation and support. Since April 2004, the Energy Saving Trust has taken ownership of the Code, with EAPG acting as a steering/advisory body.

  8.  The Code of Practice sets minimum standards for delivering transparent and accurate domestic energy efficiency advice to customers. The standards within the Code of Practice are designed to ensure that an advice organisation/ provider is well run and has its own quality control mechanisms in place.

  9.  Any organisation wishing to be seen as having met the Code of Practice is expected to meet the standards in the Heart of the Code, and one or more of the additional sections depending on the way in which the advice is provided:

    (i)  Energy efficiency advice at point of sale: applicable to organisations that give advice about specific products at the selling stage of the supply process, eg retailers.

    (ii)  Advice when installing energy efficiency measures: applicable to installers.

    (iii)  Face-to-face advice, not in the home: applicable to organisations that give advice on their own premises, at exhibitions, trade shows and presentations.

    (iv)  Advice provided in all non face-to-face situations: applicable to organisations that give telephone, written and electronic advice.

    (v)  Energy efficiency advice in the home: applicable to organisations that provide home visits for the purpose of giving energy efficiency advice.

  10.  The Code of Practice was launched on 1 October 2003. In the first year, 58 organisations have demonstrated full compliance, including Energy Efficiency Advice Centres, energy suppliers, local authorities, grant administrators, installers and retailers.[7] A further 64 organisations have expressed an interest in the Code and have begun the sign-up process.

  11.  A "specifier" category of membership will be introduced later this year. It will be aimed at organisations that don't give advice directly to the public, but outsource this service to a third party. Specifiers will be invited to commit to the Code of Practice and sign a declaration. Several large organisations have shown their support for the Code of Practice by specifying that their contracted advice providers are compliant, including Defra with Warm Front grant administrators, and the Energy Saving Trust with Energy Efficiency Advice Centres.

  12.  Promotional activity to date has concentrated on the industry, to build a good base of compliant advice providers before embarking on consumer-facing activities. Consumer-facing promotion, coupled with an easy to identify logo or brand, is anticipated to take place in 2005.

BENEFITS OF ADVICE RESEARCH

  13.  In 2002, the EAPG commissioned research to identify the most effective delivery mechanisms for providing energy efficiency advice and to discover what actions consumers took as a result of advice. They also wished to identify the benefits that consumers noticed from following advice. It was the first research to apply a common methodology of evaluation of energy advice across all delivery mechanisms and all significant advice providers.

  14.  The research was carried out through 1,900 telephone interviews with people who had received advice from a variety of energy advice sources (eg Energy Efficiency Advice Centres, fuel companies, local authorities, fuel poverty projects). A small-scale self-completion survey was also carried out among 35 homes where a Home Energy Report had been issued to prospective buyers of homes by the surveyors acting for their mortgage company.

  15.  The results clearly show that advice works. The research showed that all types of advice can produce useful financial savings and/or improvements in people's comfort, warmth, environmental conditions and even health, where people take note of and follow that advice. Key findings include:

    (i)  85 per cent of consumers can remember getting that advice and can recall what topics it covered.

    (ii)  70 per cent of consumers who receive any advice on measures do install some of the recommended measures within nine to 15 months, sometimes with the aid of grants.

    (iii)  75 per cent of all behavioural advice is followed in some way.

    (iv)  63 per cent have benefited from warmer and more comfortable homes

    (v)  34 per cent reported lower fuel bills, rising to 47 per cent among those who received written reports and verbal advice.

    (vi)  23 per cent report an improvement in health.

  16.  The research concludes that energy advice can play a major role in changing people's awareness of the opportunities to save energy and money, and to improve their housing conditions and health. It recommends further expansion (and improvement) of energy advice services in order to enable them to fulfil their potential.[8]

  17.  Other recent research supporting the benefits of advice includes:

    (i)  "Energy Monitoring Project for Lighting—Final Report", National Energy Services, June 2004.

    (ii)  "Delivering Real Warmth: User Behaviour in Energy Efficient Homes", Association for the Conservation of Energy, May 2004.

    (iii)  "Savings from Behavioural Changes following Energy Efficiency Advice", New Perspectives, April 2004.

    (iv)  "Warm Front—Controls", National Energy Action, March 2004.

PRESSING NEED FOR ACTION

  18.  The EU Directive on the Energy Performance of Buildings, which must be translated into national law by January 2006, will provide a major challenge for the energy efficiency sector.

  19.  Two of main measures for the domestic sector have a major impact on energy advice provision:

    (i)  the introduction of an energy performance certificate to be available whenever a building is constructed, rented out or sold; and

    (ii)  regular inspection of boilers over 20kW and, where systems are more than 15 years old, the provision of advice.

  20.  The Certificate, combined with the requirement for advice provision to owners of old heating systems, provides an excellent opportunity to highlight the importance of effective energy use. For the energy report to achieve real results it must be trusted by and useful for the customer. Organisations compliant with the Code of Practice will ensure quality advice from trained staff at all levels. Similarly, if the heating advice is provided by advisors following this code, it will be more effective at motivating people to take action and reduce their energy consumption.

  21.  Defra have also been asked develop a Climate Change Communication Strategy[9] to ensure consistency of messages. Given the proper consideration, this strategy could provide a further opportunity to promote energy efficiency advice and facilitate a step-change in consumer behaviour.

CONCLUSIONS

  22.  The Domestic Energy Efficiency Advice Code of Practice sets minimum standards for delivering transparent and accurate domestic energy efficiency advice to customers. It has cross-industry support and growing number of organisations are compliant with the standards it sets.

  23.  Research shows that advice works. 85 per cent of consumers remember getting advice, and 70 per cent of them go on to install some of the recommended measures. 75 per cent follow behavioural advice.

  24.  The introduction of Energy Performance Certificates, as required by the EU Directive on the Energy Performance of Buildings, will inform a much larger proportion of householders about the possibilities of improving the energy efficiency of their homes. The opportunity to capitalise on this by providing good energy advice must not be missed. Without properly resourced energy advice services, offering advice to the standards set out in this Code, those householders will not be motivated to adopt the energy saving strategies required to achieve the Government's targets.

  25.  Improving the energy efficiency in the domestic sector and actively encouraging behaviour and attitude changes to energy use are essential elements for any future energy policy. The best appliances and technology could be installed, but if not used effectively, then the savings claimed by government departments will never accrue. It is in the best interests of the public purse to ensure that energy efficiency advice delivered using the Code of Practice is an integral part of programmes using public funding

  26.  We therefore urge the Sub-Committee to adopt the inclusion of customer focussed energy advice and the Domestic Energy Efficiency Advice Code of Practice.




6   We stress the difference here between information and advice. Advice is specific to individuals and their circumstances and aims to improve energy efficiency and achieve affordable warmth, and is more beneficial than mere information. Back

7   Details can be found of the Code of Practice Register on the website at www.goodenergyadvice.org.uk Back

8   A copy of the Executive Summary of this research ("Benefits of Advice", Energy Efficiency Partnership for Homes, 2002), and an accompanying consumer leaflet, can be found on the EEPfH website at http://www.est.org.uk/partnership/sector/swg.cfm?group-id=3. Back

9   www.defra.gov.uk/news/2004/040820a.htm Back


 
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