Fuel Poor Network Extension Scheme Leon Cowley Project

Fuel Poor Network Extension Scheme Leon Cowley – Project Manager

Communitas Energy - CIC Community Interest Company. Licensed by Ofgem to operate as an approved partner to aid delivery of FPNES. Increase affordable warmth in deprived communities ◦ Gas network Extensions ◦ In house works (central heating & energy efficiency measures) ◦ Work with individual private households, RSL’s, LA’s & local communities. Offices in Leeds & Sunderland WWW. CE-CIC. ORG. UK

FPNES Objectives • Delivered by the GDN’s and IGT’s in partnership with other partner organisations • Aims to help fuel poor households switch to natural gas or a heat network. • Provides funding to eligible households to help cover the costs of connecting to the gas or heat network WWW. CE-CIC. ORG. UK

Eligibility Criteria • Live within the 25% most deprived areas in the UK measured by the governments Index of Multiple Deprivation (IMD) – Postcode criteria • Eligible for support under HHCRO • Must be in Fuel Poverty based on the latest government definition or indicator o England – Low Income / High Cost indicator where a household is considered to be fuel poor if its income is below poverty line (taking into account energy costs) and its energy costs are higher than is typical for its household type. WWW. CE-CIC. ORG. UK

Case Study – Deerness (Hendon) • 1980 s Build – terraced houses and flats. Gas mains nearby. • 160 Properties in total • Mixed tenure - Owner Occupiers, Private rented and Housing Association • LSOA eligible (6%) • Electric heating – storage and panel heaters • Majority residents low income, struggling financially, high likelihood of Fuel Poverty. WWW. CE-CIC. ORG. UK

Deerness Road • 2016 Residents contact CE to enquire about possibility of gas mains installed. • CE to engage residents and explore potential for gas extension scheme. • Jun-Oct 2016 CE conduct Project Development activities inc site visits, phone calls and letters. • Phase 1 – 70 residents express interest. Connection work completed between Nov 16 – Jan 17 • 7 Householders also eligible for new central heating via Central Heating Fund (CHF) WWW. CE-CIC. ORG. UK

Deerness Road Phase 1 – Potential Outcomes Phase II • Reduction in annual running costs of £ 565 per • 2 new streets and mop up from Phase 1 house per year on average • 37 properties would like a new connection • Reduction in CO 2 emissions 2. 94 tonnes per property per year – 205 tonnes (Project Total) • Work expected to begin Spring 2018 • Round 2 WHF bid by Sunderland Council to • Average SAP rating increase from 57 to 73 assist with cost of heating systems • User benefits e. g Controllable heating and instant hot water WWW. CE-CIC. ORG. UK

FPNES Targets • Under RIIO-GD 1 each GDN has a set target for number of connections it should make under the FPNES by 2021 • To date GDNs are broadly ‘on track’ to meet these targets and have so far connected 52, 000 households to the gas grid (since 2013) • On average 25 -35% of all NGN new connections receive Fuel Poor funding. NGN targets Connection Target Year 1 2 3 4 5 6 7 8 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 2019 -20 2020 -21 NGNTarget 1, 200 1, 500 2, 300 2, 500 Completed 1, 227 1, 708 2, 460 2, 635 2, 500 2, 200 1, 600 Total 16, 000

Consultation on changes to FPNES • September 2017 ofgem announce consultation on proposed criteria changes q. More effective targeting of fuel poverty o“The primary reason for the change is to ensure that the scheme more effectively targets fuel poor households. There is evidence that residing in the most deprived areas is not a good predictor of fuel poverty” o “Fuel poverty rates in those areas that meet the IMD criterion are only marginally higher than the national average” o “BEIS estimate that only 13% of households that meet the current IMD criterion are in fuel poverty. This is compared to the national average fuel poverty rate of 11%” q Align FPNES with other funding streams e. g. ECO

Criteria changes 2018 o 1 st July 2018 LSOA 25 criteria will be removed. o Any quotation issued before this date will be allowed standard 90 day period of acceptance. o 1 st July 2019 all agreed works must be complete. o All new quotations and engagement from July 2018 must be based on the updated eligibility criteria.

FPNES – Post July 2018 • Social Housing o EPC bands EFG o Low income / High Cost (using HB as a proxy for LI) • Private Housing o Eligible for support under HHCRO o ECO LA Flex o Low income / High Cost (using HB as a proxy for LI)

Any Questions? leon. cowley@ce-cic. org. uk Tel: 0787 2501981 www. ce-cic. org. uk