Delivering the Home Energy Conservation Act

23rd January 2007 Delivering the Home Energy Conservation Act Feedback to Bridgend County Borough Council John Scrimgeour

Delivering the Home Energy Conservation Act INTRODUCTION • Mandated improvement study across all councils in Wales under the 2005/06 Regulatory Plan • Funded by Wales Improvement Board as part of WPI programme • Consultation with HECA Forum, WLGA, WAG during development • Study piloted in three councils: Flintshire, Powys and the Vale

Delivering the Home Energy Conservation Act THE HOME ENERGY CONSERVATION ACT 1995 • HECA came into force in Wales in 1997 • Under the Act Councils were designated ‘energy conservation authorities’ • The Act provides a focus for council activities in the domestic energy efficiency field, bringing together housing investment programmes, environmental issues and ways to alleviate fuel poverty • Annual reporting requirements to the Assembly on progress in improving domestic energy efficiency

Delivering the Home Energy Conservation Act WAG POLICY AGREEMENTS • In 2004 the Assembly Government introduced 16 policy agreements with councils for the allocation of the Performance Incentive Grant • Policy agreement 7(b) relates to the percentage reduction in energy use and CO2 emissions in the housing stock. • Target is 12% reduction • Reporting requirements for the policy agreements aligned with reporting requirements for progress on HECA

Delivering the Home Energy Conservation Act STUDY OUTCOMES • The findings will inform a national report. Expected publication date is end of March 2007 • Identify good practice • Increase awareness of home energy conservation outside the specific objectives of HECA • Provide information that will contribute to future arrangements regarding the delivery of HECA in Wales

Delivering the Home Energy Conservation Act KEY STUDY QUESTION In light of progress made so far, are local authorities likely to achieve further reductions in energy use and CO2 emissions in the Housing stock beyond 2007?

Delivering the Home Energy Conservation Act SUB QUESTIONS • Can the Council evidence good progress to date? • Is local government aware of what needs to be done? • Is there a will to achieve further reductions in energy use and carbon dioxide emissions and are realistic plans in place to do so?

Delivering the Home Energy Conservation Act DELIVERING THE STUDY – WHAT DID WE DO? • Short questionnaire for completion prior to fieldwork • Examined relevant documentation • Interviewed key staff and appropriate members

Delivering the Home Energy Conservation Act Sub Question 1: CAN THE COUNCIL EVIDENCE GOOD PROGRESS TO DATE? Answer: Partly Some areas of good progress but lacks co-ordination and resources to make bigger impact

Delivering the Home Energy Conservation Act KEY ISSUES • The council is not on course to meet the 12% HECA policy agreement target by April 2007. Current figures to April 2006 were 7.93% for energy reduction and 8.01% for CO2 reduction. • Between 2005 and 2006 the council achieved a 2.15% reduction in energy use and a 2.36% reduction in CO2 emission. Since 2006 the council, has entered into a SLA with the South Wales Energy Advice Centre and we may assume the figures for 2006-07 are going to be in the region of 1.5 – 2.5% reduction in energy use making the total for 2007 of 9.43% to 10.43%. • It was not possible to make any more accurate prediction as the council did not have any internal targets or ongoing monitoring procedure in place.

Delivering the Home Energy Conservation Act KEY ISSUES • Council has no public housing - target figures are based upon the private sector (57,000 homes) & the housing associations (7,000 homes). • Progress has been made to date through various initiatives and partnerships. HEES funding has been used to carry out a programme of cavity wall and loft insulation. ‘The Heat Bridgend’ project managed by ENACT (profit making organisation) has been promoted and provides advice and assistance to carry out various energy reducing improvement in the private sector. • SLA with the Energy Advice Centre results in the centre giving help and advice on types of materials and sources of funding (EEC, HEES, council grants etc.)

Delivering the Home Energy Conservation Act KEY ISSUES • Barriers to progress have been • Lack of time resources available from the Energy Manager • Lack of information from some sectors – Heat Bridgend project managers ENACT do not pass on full information to the council regarding HECA works carried out. Some internal departments (housing grants section were mentioned specifically) do not pass on information on relevant works • Funding for HECA is only £5,000 per annum which is used to fund the SLA with the Energy Advice Centre (£5,400 /yr) • Council has very little influence over energy & CO2 within the Borough apart from resource and information limited efforts to raise awareness, provide advice and promote schemes

Delivering the Home Energy Conservation Act SUMMARY Progress has been made towards meeting the HECA targets but has been hampered by the lack of time available for the Energy Officer to devote to being more proactive and developing and driving the various initiatives currently being undertaken and investigating new ones. Lack of awareness on HECA from the council members (HECA nor reported) and concentration on energy/cost reduction in council properties. Failure to develop a prioritised action planning process (due to lack of time resources). Current Energy manager under pressure and unable to carry out all elements of job (especially HECA). Funding has been approved for a second energy post.

Delivering the Home Energy Conservation Act Sub Question 2: IS THE COUNCIL AWARE OF WHAT NEEDS TO BE DONE? Answer: Yes

Delivering the Home Energy Conservation Act KEY ISSUES • Energy management and reduction of energy use is mentioned in a wide range of council documents. However the main drivers are the Fuel Poverty issues relating to health & well being and reduction of costs for the council in running costs. • Council has a clear Energy Policy which has been approved & which covers both council owned buildings and private sector housing. This policy sets out the principles and aims and is supported by a comprehensive action plan. • Action plan 2006/07 has not been completed and currently consists of 28 operational objectives/actions against 6 Energy Policy Objectives. No targets, responsibilities, measures, resources or performance has been identified. At the time of our on-site study it was over half way though the financial year and unlikely that the action plan would make much progress

Delivering the Home Energy Conservation Act KEY ISSUES • The Health Social Care & Wellbeing Strategy (HSC&WS) gives as a strategic aim to ‘Provide appropriate warm, affordable housing for the people of the County Borough. Tackling fuel poverty is seen as local priority • The Local Housing Strategy has as a specific local priority: Improving the condition, suitability and energy efficiency of existing housing. The Local Housing Strategy 2004 -2009 also highlights the need for the council to review the ‘situation’ with regard to meeting the HECA targets and sets a key strategic objective of ‘All households to be aware and act upon the need for energy efficiency and for all homes in the County Borough to be energy efficientby 2012’ This was to be achieved by promoting HEES schemes, improving the energy database (by use of promotional questionnaires, free home energy checks and SAP ratings.

Delivering the Home Energy Conservation Act KEY ISSUES • Despite the frequent reference to energy efficiency and fuel poverty prioritisation little additional resources have been made available to implement the actions • Cabinet member for Environment is the HECA champion at member level. However no HECA information or reports are provided to members and awareness is low. • The Energy Manager’s direct line manager is on a fee based funding but has no allocated fee code to use if working on energy issues (in a managerial capacity). • Limited supervision given to the Energy Manger + lack of work prioritisation, targets, monitoring and evaluation of work effectiveness. This is leading to considerable stress, frustration and de-motivation with the postholder (now left)

Delivering the Home Energy Conservation Act SUMMARY Fuel poverty, improving housing in disrepair and reducing energy use are mentioned in several strategies. An energy & water strategy highlights the key issues and a detailed action plan identifies much of the work required. However a lack of resources has prevented the development for the strategy beyond a list of actions and without additional resources it is doubtful if this plan will get completed in 2006/7 let alone implemented.

Delivering the Home Energy Conservation Act Sub Question 3: IS THERE A WILL TO ACHIEVE FURTHER REDUCTIONS IN ENERGY USE/ CO2 EMISSIONS AND ARE REALISTIC PLANS IN PLACE Answer: No

Delivering the Home Energy Conservation Act KEY ISSUES • Likely (awaiting final council confirmation) that a new post of assistant energy manger may be created very shortly funded from a £200,000 ‘Energy Loan Fund’ which is designed to fund energy saving initiatives in council buildings. • Council has just launched a Neighbourhood Renewal Scheme which is intended to run over the next 10 years – will cover improvements to 2,300 houses in the renewal area for external works including roofs (and loft insulation) double glazing and external wall insulation, rendering or overcladding as few houses with cavity walls).

Delivering the Home Energy Conservation Act KEY ISSUES • The total capital grant funding has been steadily reducing and will reduce next year to £3 million. At the same time DFG grant costs are increasing giving an overall effect of less council funding available for HECA improvements. • The lack of internal HECA funds has prevented external initiatives where match funding is required with a partner. • An additional problem is that each directorate has to find a 4.5% efficiency saving in 2007/8. • HEES funding of £732,314 in 2004/5 and £657,278 was obtained by householders. • Utility suppliers (EEC funds) have provided funding but the council were unable to provide figures (thus underestimate HECA return)

Delivering the Home Energy Conservation Act KEY ISSUES • A condition survey was undertaken of the public sector housing in 1997/8. A total of 8,300 properties were surveyed at that time although energy efficiency was not identified as a specific issue • Another survey was carried out in 2002 • The council has an opportunity to gather useful information from the housing condition survey to be carried out in 2007. This information could be used to help target areas for action (via internal grants and external bodies) and can inform the Affordable Warmth Strategy and the Health, Social Care & Wellbeing Strategy (HSC&WS). • SLA with the Energy Advice Centre (EAC) is central the council’s approach as this organisation is the main link with the private sector in providing help advice and directing enquiries towards the main (and most appropriate) sources of financial assistance

Delivering the Home Energy Conservation Act SUMMARY The council lacks sufficient resources to effectively undertake the HECA role in the council. The Energy Manager post is heavily overstretched and needs urgent prioritisation and rationalisation of the expected duties. Direct funding for HECA is very limited and HECA Policy Agreement Funds have been used elsewhere. The council have adopted an approach of facilitation and awareness raising while directing home owners to sources of funding via the EAC with whom they have a SLA. The potential exists to better resource, co-ordinate and target action through the affordable warmth strategy combined with new survey information and additional posts. Internal funding does exist for improvements in the private sector but this is reducing and energy reduction while being stated as a priority is in practice not a key criteria in allocation of internal funds.

Delivering the Home Energy Conservation Act OVERALL SUMMARY • The council have identified energy use reduction as a priority through its links with fuel poverty and affordable warmth. They have a clear policy on energy and it is a common theme across most key council documents. The approach is one of a facilitator and awareness raising in the private sector (as they have no public housing since stock transfer in 2003) and advice and information is provided through the Energy Advice Centre with whom they have an SLA. The EAC puts enquirers in touch with the various bodies able to help with funding assistance.

Delivering the Home Energy Conservation Act OVERALL SUMMARY • HECA target information is flawed and inaccurate as it takes no account of non assisted private sector improvements and even some areas of internal information is lacking through co-ordination between departments and staff resources. The anticipate HECA figure for 2007 is likely to be around 10% but in practice this is likely to be a considerable underestimate

Delivering the Home Energy Conservation Act OVERALL SUMMARY • In practice the facilitator/awareness raising approach lacks resources and co-ordination. The officer responsible for HECA is severely overstretched and has no financial resources to work with. Line management resource problems prevent the development of a meaningful prioritisation of HECA work and even the Energy Policy Action Plan 2006/7 remains unfinished (let alone implemented). The emerging Affordable Warmth Strategy offers an opportunity to prioritise and resource the councils aspirations towards fuel poverty and HECA but even with this initiative current resources to complete the actual AW strategy are doubtful.

Delivering the Home Energy Conservation Act Questions?

Delivering the Home Energy Conservation Act NEXT STEPS • Expected publication of national report end of March 2007 • Share conclusions with the All Wales HECA Forum • WAO would welcome opportunity to share findings between councils • Views welcomed on how that might be achieved

Delivering the Home Energy Conservation Act