1. Market Update November 2015

2. Ofgem have issued their ECO1 determination

3. ECO Changes had a profound effect on delivery Industry Delivery

4. Falling domestic energy demand After 30 years of broadly stable average domestic energy usage from 1970 to 2003, usage fell by 21% from 2003 to 2014 Appliances became less energy intensive; more homes have insulation and double glazing, lighting is far more efficient and condensing boilers are more efficient

5. Increasing renewable and distributed generation In 2003, electricity generation was split: gas (37%), coal (36%), nuclear (22%), renewables (3%), other (2%) In 2014 electricity generation was split: gas (30%), coal (30%), nuclear (19%), renewables (20%), other (1%) The growth in domestic solar has been explosive. In January 2010 there were under 2,500 sub 4 Kw solar PV installations in the UK, in August 2015 there were circa 700,000

6. As well as the challenges this presents, there are new opportunities to embrace 6

7. Cavity Wall Insulation As quickly as it went in some authorities are now taking it out Damp There is a market trying to drive this new industry Why is this happening ? Maintenance programme for outside of properties Some installations poorly installed and failed Quality not maintained at the end of CESP/CERT Right measure for the property?

8. Main priorities for new Government Security of supply Supporting policies that promote competition Reducing policy costs and removing costs from bills Demand side measures such as smart technology, storage and energy efficiency Pursuing a pro-economic growth approach to climate change

9. Current energy efficiency & fuel poor policies Warm Home Discount is in its final year and no provision is in place for any such programme from 1 April 2016 ECO2 will end on 31 March 2017, and as yet no successor scheme has been formally proposed DECC giving strong indications that subsidies for the able to pay market must end and that fuel poverty policy must be refocussed

10. Policy development: Summer 2016 Consultation: Autumn/Winter 2016 Government Response: Spring 2017 Debates: Summer 2017 Scheme begins: April 2018 (or 2019) Timelines Fuel Poor Focussed Scheme 2018 (or 2019)

11. Thank you