Energy Company Obligation ECO2e NORTH EAST ASSOCIATION FOR LOCAL AUTHORITY ENERGY OFFICERS Denise Rogers 16th June 2017

AGENDA Energy Company Progress toward overall ECO2 Obligations. ECO2 eligible measures Potential Project process Project Compliance. Questions.

Energy company progress towards overall ECO2 obligations: HHCRO CERO: BG achieved the largest volume increase with 216kt (6%) gain. BG remain the only supplier in the Big Six not to reach ECO2 target. NP (incl. TP): 4th / 6 HHCRO: BG saw the largest gain with £53m (5%) increase in month, reaching ECO2 target. EDF, EON, SSE and SP all delivered significant gains despite already reaching target – indicating ECO2e early delivery. NP (incl. TP): 6th / 6 SWI: EON delivered 1.5% (9kt) of their ECO 2 target in-month. 100% Carbon this month was SWI. BG and SSE showing signs of ECO2e early delivery. NP (incl. TP): 5th / 6 This chart shows energy company progress for all measures notified to the end of March 2017 and approved by the end of April 2017 as a percentage of ECO2. All surplus actions from ECO1 to ECO2 have been approved and are included in the chart. 

Energy Company progress towards overall ECO2 obligations:- CERO This chart shows energy company progress for all measures notified to the end of March 2017 and approved by the end of April 2017 as a percentage of ECO2. All surplus actions from ECO1 to ECO2 have been approved and are included in the chart. 

Energy Company progress towards overall ECO2 obligations:- Provisional Solid Wall Minimum Requirement This chart shows energy company progress for all measures notified to the end of March 2017 and approved by the end of April 2017 as a percentage of ECO2. All surplus actions from ECO1 to ECO2 have been approved and are included in the chart. 

ECO2t Which measures? ECO2t Measures Table can be found on the ofgem website;- https://www.ofgem.gov.uk/system/files/docs/2017/05/eco2t_measures_table_-_may_2017_v5.pdf The ECO2t Measures Table provides information on eligible energy efficiency measures which suppliers can use to meet their obligations for measures installed from 1 April 2017 until 30 September 2018. The table includes the following information for each listed measure: •measure category •measure type •eligibility under ECO2t obligations CERO and HHCRO •in-use factor •standard lifetime •relevant PAS annex •measure name: format for notification to Ofgem. Additional information has also been provided for some measures. The list of measures is non-exhaustive. Please note that the measure types listed are those which are present in the deemed scores matrix. District heating systems have also been included, but these must be scored with SAP/RdSAP. Other measures may qualify, subject to review by us on a case-by-case basis.

What measures? Solid Wall insulation/External Wall insulation…..

What measures? Insulation…..

What measures? Heating….

Potential Projects Potential ECO project Discussions around project potential Project, carbon and funding levels reviewed by Npower and enter the Npower pipeline Approval from npower received, a funding offer will be made Finer details of project are drawn up and contract development begins. Contracts signed, Pre start meetings & work commences.

Always mindful of the Ofgem rules for compliant measures! All ECO Insulation measures must follow the contract for supporting evidence provided and meet the most recent criteria specified by Ofgem and the latest edition of PAS2030. Mandatory Requirements Standards of installation: PAS certification and installation by a person of appropriate skill and experience – From 1 June PAS2030:2017, including Pre-installation Building Inspection (PRIB) Deemed score input document including floor plan and photos as necessary Land reg extract or equivalent to confirm the premises are not social housing * DWP matched reference to confirm the occupier is a member of the Help to Heat Group * Lower Super Output Area (LSOA) Post code checker for CERO Rural if applicable Multiple premises such as tower blocks – Social landlord consent / fair processing and privacy Installation in accordance with Building regulation i.e., British Board of Agrément Certificates (BBA) / European Technical Approval (ETA) Appropriate Guarantees for all wall measures to support lifetime of measure Declaration of conformity and completed installation Insulation of SWI to include age of the building and the type of walls treated (i.e. brick or non-brick) Percentage of measure installed (POMI) where <100 per cent – evidence to include reasons and photos Percentage of Property Treated (POPT) required for score calculation - additional guide to follow Data set to be completed in the validation spreadsheet (ISS) Technical Monitoring to verify installation standards and compliance to ECO eligibility criteria * Not applicable to CERO installations

Compliance, a brief overview….. PAS 2030:2017: Summary Key points: Following changes since the launch of Green Deal the PAS2030:2017 standard is adapting to market feedback, and while the main goal is to still set out requirements for the installation of Energy Efficiency Measures (EEM), more emphasis has been given to the design specification, inspections and the Pre-installation building inspection. 1. Design Specification – The 2017 update provides that installers need to be satisfied that the information given on the system design is adequate before proceeding with install. Installers are encouraged to challenge the system designer or require further information if they feel it is required. The aim of this change is to give clarity to customers as to who is at fault should there be an issue with the EEM, whether it is the installer or manufacturer. 2. Inspections - There is an increased requirement (levels to be determined) on the number of inspections that will take place on the installer at each stage of the process. This means that there is more emphasis on record keeping by installers around suitability of the EEM.

Compliance PAS 2030:2017: Summary 3. Pre-installation Building Inspection (PRIBI) This is an enhanced requirement of the Pre-installation building survey and puts more emphasis on the building fabric and general suitability of a property to have the EEM. Minimal requirements that a PIBI covers are specified per specific measure as well as general requirements around: •The suitability and completeness of the design specification; •The suitability and completeness of the installation method statement; •Confirmation that the specified EEM can be safely and effectively installed at the designated location; •Potential for moisture build-up as a result of the installation; •Confirmation of the adequacy of ventilation prior to and after installation; •Potential instances of thermal bridging and planned actions for amelioration; •Risk to functionality and/or safety of installed services; •The status of pre-existing safety alarms and; •The presence of protected species.

Deemed Scores Guidance Deemed scores are fixed scores for each measure type that can be determined using three or four variables. • To determine the appropriate deemed score for a measure, installers must first select the appropriate measure type. They must then identify the basic attributes of the property in which the measure has been installed. • All deemed scores accounting for all property attributes are stated within the Ofgem deemed scores matrix. • For insulation measures, these attributes are split into three main variables: - the type of property the number of bedrooms in the property, and the main heating source of the property. • The percentage of measure installed (POMI) and percentage of property treated (POPT) must also be determined in order to calculate the correct score. • A basic guide on how to read the scores is presented in the ‘User Guide’ tab of the Deemed Scores Matrix.

Percentage of measure installed (POMI) and percentage of property treated (POPT) Percentage of measure installed (POMI) and percentage of property treated (POPT) both need to be determined and notified for each ECO measure scored using a deemed score. However, only the percentage of property treated should be used to determine the score. The POMI of an ECO measure must be 100% unless there are reasonable grounds for not doing so. The deemed scores assume that the measure type installed treats 100% of the property. For instance a cavity wall insulation (CWI) score will assume that all walls of the property are cavity walls and all of them are treated. A gas boiler score assumes that the entire property will be heated by the gas boiler.

Declaration of Conformity and Completed Installation This is the document that enables the customer and installer to sign for handover of the measure, and make a declaration against a range of energy company requirements. It meets the Ofgem requirements for:- Handover to customer (can be signed by someone acting on behalf of the occupant /landlord as long as they are not the installer, supplier or any other party in the supply chain). The PAS2030:2014 declaration of conformity or PAS2030:2017 claim of conformity. The declaration of completed installation. POMI % and POPT % Records the reason why 100 per cent of a measure was not installed and/ or where 100% of the property has not been insulated for the deemed score. The declaration of conformity confirms the following points:- This declaration is completed per measure type Handover should take place within 4 weeks of finishing work on each measure Handover date should agree with the completed cell in the validation spreadsheet or ISS That relevant documents, instructions and warranties have been provided to the customer Exception where multiple premises are owned by the same landlord, i.e., tower blocks or flats when handover of all measures installed of that type may have the same handover date and should be within 4 weeks of finishing work on the last measure:- Accompanied by a spread sheet listing all the properties in that one handover The variants for the measure type for deemed scores should be recorded on the accompanying s/sheet Any variations of per cent installed for measure / property should be recorded on the accompanying s/sheet

ECO2 Technical Monitoring - Insulation Technical Monitoring requirements: Technical Monitoring at a 5% minimum level must be conducted on each measure type based on the number of notified measures during the quarter. The actual measures to be monitored are randomly selected by the Technical Monitoring Agent (TMA). The selected measures need to be representative (by at least 3%) of the actual PAS2030 accredited company that installed the measure during the quarter. Where the number of measures of a particular type or installed by a particular installer is less than 100 for a specific period, monitoring should be conducted on at least one measure installed by each installer. The inspector must meet the competency requirements as outlined in the Ofgem guidance. Technical Monitoring (post installation) needs to take place within a specific time frame based on the measure notification deadline. Monitoring targets must be met by the end of each TM monitoring period TMA’s must notify npower directly in instances of non-access TM questions split into 4 areas: Score monitoring Technical Monitoring – Core TM questions Best Practice (optional) Health & Safety Monitoring – Energy UK safety questions (optional) 57

Business Development Manager Thanks You & Questions Denise Rogers Business Development Manager Mobile 07557196942  Email denise.rogers@npower.com