Select Committee on Science and Technology Written Evidence


Memorandum by George Wimpey UK

1.  INTRODUCTION

  George Wimpey UK [GWUK] received a panel of possible questions and a "Call for Evidence" to the House of Lords Select Committee inquiry into Energy Efficiency on Thursday 11 November and has elected to give a written response to the "Call for Evidence" (and where also relevant offer opinion on the panel questions on policy).

  Each "Call for Evidence" question is answered under it's own heading, although cross reference to other answers is made in several of the answers. The panel of possible questions as received are answered where indicated.

  The "Call for Evidence" questions received were as follows:

    —  The most appropriate measure of energy efficiency, and the relationship between improvements in energy efficiency and overall energy use and carbon emissions.

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

    —  The scope and incentives for improving energy efficiency and reducing waste, across the economy, in both private and public sectors.

    —  The potential for technological improvements to the energy efficiency of new and existing buildings, and how these should be implemented.

    —  The development and promotion of energy efficient consumer goods.

    —  Innovative schemes to use district heating or combined heat and power in order to reduce overall energy demand.

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

  The panel questions were as follows :

Question 1:  How have you replied to the consultation on proposed changes to Part L of the Building Regulations? Do you think the eventual changes will lead to a major step change in energy use?

Question 2:  What are your thoughts about the proposed Code for Sustainable Buildings, that came from the recent report by the Sustainable Buildings Task Group?

Question 3:  What Work do your companies undertake, or Fund, to Find ways of reducing energy demand in Buildings?

Question 4:  What are the barriers to constructing buildings with greater energy efficiency, and how can they be overcome?

Question 5:  Are the skills in the construction industry available to design and construct buildings to higher energy efficiency standards? What is being done to address any skills shortages, and is it enough?

Question 6:  How well informed is the public about the full life-cycle energy cost of their homes, and how can they be encouraged to use this information when considering a purchase?

Question 7:  What demand do you see for buildings with relatively high standards of energy efficiency? What is the prospect of "EcoHome" pilot projects becoming the norm for new build in the United Kingdom?

Question 8:  Do you think that district heating schemes could be used more widely in the United Kingdom? What barriers are there to implementing district heating into new developments?

Question 9:  Climate change may result in a warmer climate for the United Kingdom in the future. Have you considered how the potential demand on energy from cooling could be reduced? Given the long lifetimes we expect of our buildings, should features be incorporated now in anticipation?

2.  THE MOST APPROPRIATE MEASURE OF ENERGY EFFICIENCY, AND THE RELATIONSHIP BETWEEN IMPROVEMENTS IN ENERGY EFFICIENCY AND OVERALL ENERGY USE AND CARBON EMISSIONS

  We are answering as to the most appropriate measure of energy efficiency for new housing, as it is beyond the remit of our business to answer for other products. Part L of the Building Regulations (Part L1 Conservation of fuel and power in dwellings), which may be viewed as a "how to manual", largely dictates the standards to which the industry in general must adhere, which results in a large degree of standardisation.

  We answered the consultation for Part L through the House Builders Federation [HBF], as we believe in a co-ordinated and unified industry voice in such matters.

  We believe, as do the HBF that the changes to Part L, if fully implemented will result in a significant step change, particularly for some of the smaller builders and we would agree with them that the skill level needed to fully implement all of the recent changes to the building regulations (not just Part L) may not be universally available due to a shortage in experienced site based labour. Changes in government policy to encourage more people to choose construction and other trades as a career with equal value as a university education would help in this area.

  At present the SAP (Standard Assessment Protocol) rating is used to calculate energy efficiency for new dwellings. Whilst we are able to calculate this for our design and build we are concerned that the scheme, scaled as it is on a 1 to 120 scale is neither well known or understood by the general public (in the way say the alphabetic rating for Eco Labelling of appliances is) nor easily applied for the purposes of comparison to existing housing stock. SAP is a useful tool, but we feel that it is a component tool rather than representing the definitive energy efficiency of a property.

  The Carbon Index Method can and often is also used, but this is poorly understood by the public, though it can be used to calculate carbon emissions. We feel that one of the most important things to be sought for any measure of energy efficiency is consistency and communicability. Not only should one be able to consistently measure the energy efficiency of any dwelling both new as built and existing houses but we need to be able to do so in a fashion consistent with the rest of the industry and with other sectors.

  GWUK recently commissioned an internal report from the board on this issue and has established that of all the tools on the market available to us at present, the BRE EcoHomes assessment criteria, which we have used on several developments, is favoured by planning authorities as the most visible and viable method of assessing and demonstrating our sustainability credentials as a business. There is a significant cost implication attached to this however and we are conducting further research into the commercial and practical viability of the standard.

  EcoHomes has the additional advantage of covering social as well as environmental issues. It considers the lifetime energy use of a property and has specific calculations for energy efficient appliances so considers the home as part of a community (which SAP as a unit measure cannot). The difficulties generally with EcoHomes are that it can sometimes be over simplistic with subjective pre-defined weightings; though specific to our business the lack of national uptake of the scheme and availability of trained assessors is also of concern.

3.  THE BEHAVIOURAL ASPECTS OF ENERGY EFFICIENCY SCHEMES—THE QUANTITY AND QUALITY OF INFORMATION AVAILABLE ON ENERGY EFFICIENCY, AND WHETHER THE PUBLIC IS SUFFICIENTLY KNOWLEDGEABLE AND MOTIVATED TO ACHIEVE ENERGY SAVINGS

  Although resources such as the Energy Saving Trust and the Community Renewable Initiative are available to the general public and local authorities there is a comparatively low level of awareness of measurements of energy efficiency (such as SAP) amongst the general public. We would refer to our earlier answer and suggest that an energy efficiency indicator that informs the public of the pounds, shillings and pence cost of energy efficiency would be the most appropriate motivator to drive public consideration of these issues.

  As a volume house builder we want to meet the Baker Report Targets for volume growth and affordability. The measures required to be emplaced to increase the EcoHomes and SAP rating of a house or to add Lifetime Homes features add additional costs which the general public is typically reluctant to pay as they add a significant premium to the cost of a new home when compared to less efficient existing housing stock. Anecdotal evidence from our developments indicates that the public in practice are unwilling to pay a premium for measures such as grey water recycling and solar panels and in fact there is a general negative association with the maintenance issues that attend them by the public and the Highways Authorities.

  It has been acknowledged by the Government that it is not the new, energy saving housing stock, which is most problematic, but rather the majority of existing housing stock, which is largely responsible for the wasted energy. Houses with no loft insulation, old draughty windows, inefficient electric fires etc. will account for this biggest element of such wastage. We would suggest it is Best Available Technology Not Entailing Excessive Cost [BATNEEC] to improve existing housing stock than to load new homes with even more targets, which will achieve minimal gain at significant cost loads, which is not compatible with the Baker Report.

  The public will only be genuinely interested in energy efficiently if it can see `pounds' savings, or improvements, on its own investments. As many improvements to efficiency are expensive to implement, a system is needed to subsidise such improvements. Better information, and a wider dissemination of knowledge would greatly help this. We would suggest using energy companies to pass the message with their bills. We already include energy efficiency information packs with our houses on many developments and we have found this to be quite effective.

4.  THE SCOPE AND INCENTIVES FOR IMPROVING ENERGY EFFICIENCY AND REDUCING WASTE, ACROSS THE ECONOMY, IN BOTH PRIVATE AND PUBLIC SECTORS

  Many technologies exist to improve efficiency. Their use in existing, inefficient buildings would have a far more beneficial effect than only having them in new ones which are already very well insulated (for reasons we have previously discussed).

  We would comment that the conflicting guidance and standards set by various government and regional policies does not aid the reduction of waste or increase in energy efficiency.

  Conflicts in production volumes demanded by government; drives towards developing brown field land; achieving densities; different standards of build and conflicts within the Building Regulations and Lifetime Homes standards have led to industry confusion and an un level playing field.

  For example though the changes to Part L have been published there is general agreement within the industry that some need a great deal more thought and clarification before they can be implemented. There was also concern that the Government is expecting industry to do much of the development without supplying the resources and funding needed to achieve this, or that the requirements of each section of the Regulations has not been cross referenced with the others, or with the Lifetime Homes Standards. For example Part L requires that window size on south facing windows be minimized, however the Lifetime Homes Standard specifies larger size windows (though the sill height may be taken to contravene Fire Regulations). Extra thermal efficiency in the fabric of the building itself will also mean that once it has heated up it will be harder to cool down again. Large windows allowing maximum through ventilation is the only way if electric means are not to be employed, but again this flies in the face of the new Part L.

  We would suggest that there would be greater scope for these issues, were a "How to" manual similar to the Building Regulations produced as definitive government minimum standard to level the playing field, but where all sections cross referenced the Building Regulations and Government Policies such as sustainable communities and lifetime homes.

5.  THE POTENTIAL FOR TECHNOLOGICAL IMPROVEMENTS TO THE ENERGY EFFICIENCY OF NEW AND EXISTING BUILDINGS AND HOW THESE SHOULD BE IMPLEMENTED

  We feel this has already been answered by previous questions.

6.  THE DEVELOPMENT AND PROMOTION OF ENERGY EFFICIENT CONSUMER GOODS

  This question is largely answered in sections 2 to 4 of this response. We would like to make a few additional comments however.

  GWUK has recently expanded its core business to customer option centres to mirror the groups long standing practice in America. As part of these option centres we provide a choice of energy efficient appliances for customers, on several of our developments we have committed to providing `A' rated goods packages as an option or providing only washing machines with an `A' and `B' rating. At present consumers tend to be limited by their budget as to their choice of appliance. It is anticipated that as the technologies progress they will become more affordable.

  Use of solar panels and grey water recycling are largely being held in abeyance by consumer preference and the reluctance of local and water authorities to adopt SUDS due to concerns over long-term maintenance. As previously mentioned we believe that consumer education, as to the monetary value of energy saving technology, combined with consistent regulations which provide uniform minimum standards for old and new build will be the most effective way to promote adoption of energy efficient consumer goods.

  We would also consider our homes to be an energy efficient consumer good, although the energy efficiency of a home is rarely seen as a selling point for our customers, and evidence from our research indicates a general lack of awareness of the relative energy inefficiency of existing compared with new housing stock. We build structures with low lifetime embodied energy, features such as Western Red Cedar and recycled and secondary aggregate have been incorporated into designs and we have commissioned an internal Waste Minimisation working group who consider issues such as minimising the number of lorry movements required on developments and lifetime waste from our products.

  We elaborate further on our research and development initiatives in the answer to question 8.

7.  INNOVATIVE SCHEMES TO USE DISTRICT HEATING OR COMBINED HEAT AND POWER IN ORDER TO REDUCE OVERALL ENERGY DEMAND

  The technology behind district heating and combined heat and power (CHP) has improved significantly over the last 40 years. CHP plant are however still a long term payback, capital intensive project, and require considerable amounts of long term capital funding and specific skills to install. There is generally low awareness amongst the public about CHP and district heating and where awareness exists it tends to be associated with poorly designed or maintained social housing projects from the 1970s. As such negative public perception of the technology and the mental association with "tenement tower blocks" is a considerable barrier.

  From a developers point of view, initialization of CHP and district heating are only viable on large, dense schemes where the local authority or a private contractor is prepared to absorb a significant part of the considerable capital costs associated with establishing and maintaining these plant; or on smaller schemes where there is an existing district heating or CHP network to connect up to. A further barrier is that the concept of district heating is much simpler on developments like social housing where an RSL (registered social landlord) can be the "name" on the energy company bill as the logistics of making many individual householders pay their share of a large, wider, bill are very difficult and initial feedback indicates public resistance to this concept as the wider public do not wish to be held responsible for "others" who do not pay their share of a district bill.

  It is generally acknowledged that CHP and district heating work best in very dense housing: high or low rise apartments. When calculating SAP ratings for a dwelling there is a considerable bias in favour of apartments and terraces for insulation calculations. This favours densification, as do PPG 3 and the drive towards remediation of brown field sites (where remedial targets for an apartment building with hard standing may be considerably more achievable than those for residential with gardens). The difficulty faced by developers is that there is a traditional preference and aspiration in the UK for detached or semi-detached living. We have consulted with the HBF on this matter and this would appear to be a consensus opinion of HBF members.

  However we consider it likely that a knock on effect of the landfill directive will be an increased need for municipal incinerators, and it is likely that Local Authorities may prefer the choice of Energy from Waste (EFW) plants, which may also be used to provide district heating. For this reason and for reasons of general government policy we anticipate that more Local Authorities will be looking to incorporate some form of CHP or District Heating in their Local Plans, which leads us to anticipate that CHP or District Heating schemes may become integral in the pre-qualification processes in future for larger land parcels.

  On a purely practical issue there can be issues with the heating company laying their distribution pipes under adoptable footways as they may not be/are not, statutory undertakers and therefore do not have the rights to so do. This could be a significant barrier.

8.  THE FUNDING AND CO-ORDINATION OF RESEARCH INTO ENERGY EFFICIENCY MEASURES IN THE DOMESTIC AND INDUSTRIAL SECTORS, AND HOW WELL RESEARCH IS TRANSFERRED INTO APPLICATIONS

  George Wimpey UK has traditionally funded research internally (through funding research interests of our staff and through our Group R&D Manager) and from specialist consultants for particular applications, such as prototype modular housing, the results of which have been commercially sensitive. In the public domain we work closely with the HBF and BRE to push best practice in this area.

  A degree of natural evolution in sustainable design/modern construction techniques has taken place at a local business level (eg the "Staiths", GW North East/the "Metro", GW West London) but it was decided that a more formal commitment to R&D was necessary, with the impetus coming all the way from Board Level.

  On Group review of recent R&D research we established two things; firstly that there wasn't much going on that we weren't already aware of in terms of innovative build techniques, and secondly that experimentation with such techniques was risky and potentially very costly.

  In order to minimise duplication of effort and the risk element we decided to promote group R&D through partnering with leading universities. We started a process of assessing the competencies of various Universities with a view to establishing a relationship; however the initial approach for the relationship we are now developing came from Professor Saffa Riffat (head of the "School of the Built Environment" at Nottingham University). It quickly became apparent that Nottingham stood head and shoulders above the vast majority of other universities in the UK in this area.

  They are ranked no.1 in the UK for the study of Architecture and Building Technology, offering courses on Sustainable Development, Planning, Environmental Design, and Renewable Energy and Architecture. The School receives around 18 applicants per undergraduate place and has a student body of c700, including 50 research students and 43 MA students. Regional Directors and representatives of the UK Board visited the school on a couple of occasions and were impressed with the facilities and the quality of the research that is taking place there. They already have strong links with companies in the UK and overseas, including Pilkington, Baxi and others.

  It was agreed that a sensible first step in a relationship with the University would be the sponsorship of a Lecturing post; having the benefit to George Wimpey UK of being a relatively safe/controllable and identifiable cost. It is a longer-term commitment to the University than a one-off project would be and is definitely viewed as the first step in an ongoing relationship. For example the school are keen for George Wimpey UK to be involved in the construction of a number of "Creative Energy Dwellings" on the University campus which would act as a working/living laboratory for the latest research.

  To date, we have committed to the sponsorship of a Lectureship at the University for a minimum of two years. This will give us access to the pool of knowledge and cutting edge research. It will enable GWUK to contribute to the direction of the research and offers a potentially valuable conduit for new products into the market place, increasing their commercial viability.

  From GWUK's point of view key areas of research will be sustainable and renewable energy technologies as well as modern construction methods, innovative design etc.

  Aside from this initiative at present we have internal working groups and commissioned external work in progress reviewing such diverse areas as the application of the EcoHomes standard to our build; and the feasibility of using solar panels on various developments. We have annual house type reviews that examine the components and whole of each house type for energy efficiency and review the SAP rating. Internally we share knowledge on our intranet and through specialists meetings.

18 November 2004



 
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