Community Energy Presentation Carbon Action Network (CAN) Martin Davis Monday 27 th July 2011

Introduction Across the country, British Gas is working closely with local authorities and housing associations to help reduce carbon emissions and improve fuel efficiency of social housing and public buildings. Recognising that no property is the same, we work in partnership to develop solutions specifically tailored to the needs of your community. Contacts for the Central Region; Jane Poxon Regional Head Martin Davis Energy Solutions Manager Lindsey Kennedy Energy Solutions Manager

The future for British Gas Our strategy “British Gas has become an energy services company that offers energy, no longer an energy company that also offer energy services” Sam Laidlaw Chief Executive, Centrica Are we ready for this? With 9.5k engineers across the country and already we install over 100,000 Energy efficient boilers every year. And over the last five years, we’ve insulated over 2.5 million homes.

Setting the scene ?? inefficient boilers in the UK.

Setting the scene 4 Million inefficient boilers in the UK.

Setting the scene ?? homes without cavity wall insulation.

Setting the scene 6 Million homes without cavity wall insulation.

Setting the scene ?? without proper loft insulation

Setting the scene 7 Million without proper loft insulation

The Challenges Challenging Targets: We have no hope of hitting our carbon reduction targets by 2020 and 2050 if we don’t tackle the energy efficiency of these properties Increasing Energy Bills: Thanks to competition, the unit cost of energy in the UK is amongst the cheapest in Europe. But our energy bills are still the highest. Why are Bills so high? Because Britain has the least energy efficient housing stock In northern Europe. We must take urgent steps to address this Energy Efficiency Costs money: big and small – cost money, which can put people off, particularly in tough economic times. Comprehensive Spending review: Homeowners are responsible

Green Deal go early We ’ ve also committed to ‘ go early ’ by trialling the Green Deal with some of our customers and share our experience and lessons learnt with government. 3 Pilots Projects in the North, Midlands and the South Focus on British Gas Customers Cross tenure Restrictions apply due to legislation etc

Green Deal go early conclusions There are two key challenges; Firstly, it is very difficult to put together a package which is attractive to customers, meetings the Golden Rule and remains commercially viable for us and our finance providers. Secondly, the customer journey will be complex, but we need to make it look like a swan gracefully crossing a lake, without the customer being aware of all the paddling underneath.  Range of measures still to be determined, but – critically – measures installed must ALL meet the Government’s “Golden Rule”: Energy Bills AFTER Green Deal Ongoing Green Deal repayments + Energy Bills BEFORE Green Deal <

How can we make Green Deal more attractive? How Can we make Green Deal more attractive? We need the product mix to be attractive, and we believe that FIT and the RHI should be included in the calculations on the golden rule, so that microgen and renewable technologies can be included in the Green Deal finance package. We need government incentives, such as a stamp duty rebate for new owners taking out a Green Deal, or council tax rebates which we have found very successful in encouraging uptake in our CESP areas. We need the customer journey to be open to a range of models, including independent green deal assessors but also including assessors who are tied to work for a particular green deal provider.

Our work in your community Video

Thank you for your time! Our work in your community Video We look forward to working with many of you on Green Deal in the years to come.