1. CESP Community Energy Saving Programme energy made better

2.  Rising energy prices  Increase in fuel poverty  CERT mainly funding insulation and lighting  Calls for a windfall tax on energy companies  Energy suppliers already funding £3bn CERT activity  No targets on generators CESP - Background

3.  Announced by Gordon Brown in Sept 2008  Part of Governments “Home Energy Saving Programme”  Two key aims;  Improve energy efficiency of existing housing stock  Reduce energy demand in the domestic sector  To be achieved by;  Community approach – working in partnership  ‘whole-house’ principle – delivering measures  High-impact principle – targeting low-income households  Aim to lift whole communities out of fuel poverty  Funding from Generators for the first time  Consultation document published 12 February 2009 CESP Summary

4.  Partnership approach using LA’s as a key player  Bonuses will be offered as incentives for delivery of multiple measures  Targeting given geographical areas  Households need to be in lowest decile of the Index of Multiple Deprivation’s (IMD) income domain  Around 100 schemes  Benefiting roughly 90,000 households  CESP will run until December 2012 Key Proposals

5. Obligations CompanyShare of customersShare of supply obligation Share of generation Share of generation obligation by generation British Energy19% E.On15% 11%13% Scottish & Southern16% 11%13% RWE npower14% 9%10% Edf Energy10% 7%8% Drax Power7%8% ScottishPower10% 7%8% British Gas/Centrica34% 4%5%

6.  Scoring system  Baseline assessment of the amount of carbon saved per measure  A points increase, or decrease depending on the measure installed  Bonus points for multiple measures installed in one home, and/or treat many homes in one area  Flexibility of delivery of measures  Some measures will receive increased credits others reduced i.e. solid wall will get an uplift but cavity wall insulation a decrease How CESP will work

7. Proposed measures Lifetime CO2 t Cost to supplier/generator CESP bonus Numbers of measures delivered CWI18£364-50%35,000 Virgin loft10£276-50%10,000 Loft top up3.5£276-50%60,000 External solid wall?47£3930+300%15,000 Internal solid wall?44£2635+200%15,000 Fuel switch (to gas)84£3630012,000 Connection to district heating scheme? 72£473101,000 Micro-generation (PV, solar thermal, mCHP, biomass boiler, micro wind, micro hydro) 8 46 £3278 solar thermal £5846 pv 0750+ Heating controls0.4£89050,000 Air source HP46£54000300 Ground source HP88£94160300 Installing GCH in homes without? Replacing old boilers (G rated)24£2250060,000

8.  Focussed on hard-to-treat homes  Offer as many measures as practicable and appropriate  Promote to as many households as possible in targeted area  House by house, street by street approach  Focusing on measures that make significant improvements to energy efficiency and CO2 reductions  Creating incentives for use of more significant measures by scoring more highly i.e. solid wall insulation  Promoting combinations of measures within single homes by providing bonus scores Whole-house approach

9. Applying a score in a whole house approach: a practical example A Victorian terraced house in a deprived area of Doncaster has solid stone and brick walls and 50 millimetres of loft insulation. The house loses large amounts of energy through its roof and walls, and has a very inefficient 1980s G-rated boiler, which burns a lot of fuel for the heat it produces. A whole-house approach could provide loft insulation to current building regulation standards, internal solid wall insulation and replace the boiler with an efficient condensing model. The loft insulation would cost approximately £338 offering CO2 savings of around 251kg CO2/year, or around 10 tonnes CO2 over the lifetime of the measure. The score for this measure would be 5 points. The internal wall insulation would cost around £3056 with CO2 savings of roughly 1470kg CO2/year, or around 44 tonnes CO2 over the lifetime of the measure. The points score of this measure would be 132. As this would be the second measure installed within the house, all measures installed in this house would receive a whole house bonus of 10%. Installing a new boiler would cost approximately £2500, the CO2 savings roughly 1979kg CO2/year, or 24 tonnes CO2 over the lifetime of the measure. The points score for this measure would be 24. As this would be the third measure installed within the house all measures would now receive a 20% bonus rather than a 10% bonus. The total cost for introducing loft insulation, internal solid wall insulation and a replacement boiler would be approximately £5894. The total CO2 savings would be around 3700kg CO2/year. The total score for the individual measures would be 161 points. Since all measures would also then get a 20% bonus, the final score of measures in this house would be 193.2 points. The carbon savings and scores would also be modified by Ofgem depending on the size of the property (measures can produce smaller savings in smaller properties). Example

10.  Super Output areas  1500 people per area/approx 650 households  Use IMD to identify areas with highest levels of low income households  Support existing projects/community schemes  All tenures qualify  Local Authorities expected to be a key player by government  Cost-effectiveness Selection Criteria/Eligibility

11.  Energy Suppliers/Electricity generators  Local Authorities  Local Strategic Partnerships  Local Service Boards  Community Planning Partnerships  Regional Development Agencies  Homes & Communities Groups  Warm Zones  Local Community Organisations Potential Partners?!

12. Red = Warm Zones; Green = Green Streets; White = Health Through Warmth; Dark blue = CEEF funded; Light blue = British Gas Council Tax Rebates; Yellow = Transition Towns; Pink = Individual CPPs

13. CESP will act as a bridge to the future, testing out particular approaches to the treatment of houses and communities, and how householders might interact with a community-based approach. The future?