Meeting Itinerary Timings 1 13 30 13 45

Meeting Itinerary Timings 1 13. 30 – 13. 45 Welcome to ALEO (North East Region) Cliff Duff (ALEO NE Chair) and Sue Carr (ALEO NE Vice Chair) 13. 45 – 14. 15 – 14. 45 – 15. 15 5 15. 15 – 15. 45 2 3 4 6 Vestemi - Radbot Jeremy Lock - CEO Mitsubishi Heating Pete Mc. Naughton - Account Manager National Energy Action Matt Copeland - Policy Manager Closing Remarks and finish Cliff Duff (ALEO NE Chair)

Vestemi - Radbot Jeremy Lock

https: //www. youtube. com/watch? v=NANBSsmjoao

Content Are you wasting energy? Radbot (includes link to installation video) Unique features 10 reasons why Product development and proving Energy savings Questions? Appendices How it works ROI Carbon savings Radbot communications Warranty 05/11/2020 Private and Confidential Page 5

Are you wasting energy? You wouldn’t leave the lights on in a room you weren’t using, so why do you heat it? In the UK alone, £ 6 bn p. a. is being wasted on inefficient domestic space heating, which equates to 5% of the UK CO 2 footprint 05/11/2020 Private and Confidential Page 6

RADBOT Radbot is an intelligent Thermostatic Radiator Valve (TRV) that saves money and carbon by monitoring and learning room occupancy and adjusting temperature accordingly • Heats the room only when it expects you to be there • Detects and predicts room occupancy using light sensor • No tradesmen needed; self-fit in a few minutes – video link: https: //youtu. be/3 sorq. Omz. O 1 o • Start with a single room or do the whole building • Domestic and commercial use Shown to save around 30% of the energy needed to heat a property 05/11/2020 Private and Confidential Page 7

UNIQUE FEATURES • We believe that heating should be about background automation, not complex controls • Most smart solutions say they will save energy, but many just give the user a more convenient way to set a schedule 05/11/2020 Private and Confidential Page 8

10 Reasons why 1. Materially different – room by room automated ‘AI’ control 2. Compatible – over 90% of UK homes using radiators, cross tenure suitability 3. Affordable pricing – RRP of £ 39. 99 per unit giving 12 -18 months user payback 4. Marketable product - TRL 9, CE certified, launched winter 2018 5. Simple to install – by the consumer, takes minutes, no skills required 6. No internet connectivity required – Radbot is autonomous with all software onboard 7. No setup or scheduling – Radbot monitors its environment and learns 8. Easy to use – operates like a conventional TRV, minimal user interaction required 9. Discreet design – suits all decors 10. Genuine energy saving – demonstrated 30% heat energy savings 05/11/2020 Private and Confidential Page 9

Product Development and Proving The algorithm and product have been developed and refined over the last 4 years The product is available and CE certified and TRL 9 Radbot is endorsed by the Energy Saving Trust We have completed a significant trial with Network Homes Housing Association demonstrating up to 30% gas heating saving We have a grant from BEIS to determine how Radbot can be part of the wider government efforts to reduce carbon in the UK We are one of 5 new technologies approved by OFGEM for ECO 3 innovation demonstration project 05/11/2020 Private and Confidential Page 10

Energy Savings – NETWORK HOMES Trial Case study – Network Homes, Brent, London Duration: 16 months – Dec 2015 – Mar 2017 16 months trial to help verify energy saving calculations and develop valuable insights into product user acceptability, installation and maintenance Installed 200 Radbots across 58 properties and data collected The trial produced two key insights. • Product usability – the majority of feedback was that Radbot was easy to understand operate. Some households raised concerns over the noise of the motorised valve which we continue to address in our production version. • Verification of 30% energy saving – for households where a full data set was obtained, an average 30% reduction in gas consumption was observed. Drop-outs and technical issues with remote data gathering unfortunately resulted in a smaller than forecast data set. This in part was due to the vulnerable and transient nature of the trial group. 05/11/2020 Private and Confidential Page 11

Energy Savings – BEIS ROWR Trial Salford House, Salford University – Controlled tests (Part of the BEIS funded ROWR Programme) Duration: 4 weeks – Feb 2019 – Mar 2019 Overall programme combines controlled environment test (Salford House) and field trials across ~ 50 homes of varying types and locations. Due to complete June 2020 (covering 2 heating seasons). During the trial the energy saving compared to traditional mechanical TRVs was; • At least 25% whole-house (boiler) savings in the Energy House setting (see Note below) • Over 60% savings in the areas controlled by Radbot, with comfort adjustments. • Savings were derived by comparing space-heat energy consumption for Radbot with a widely used mechanical TRV. • Radbot maintains comfort by keeping room temperatures close to the target implied by the dial during occupancy. Savings are made by letting temperatures drop at other times. Comfort adjustment: the % savings have been adjusted to account for higher Radbot comfort dial settings. Note: Salford House does not include a manual thermostat in the living room and so no Radbot could be installed there, suggesting that this is an under-estimate. This is unusual compared to UK housing stock and so this supports a 30% Energy Saving in a standard UK home. We can provide a full technical report on this trial under NDA if required. 05/11/2020 Private and Confidential Page 12

Questions? For further information, contact: Jeremy Lock CEO, jeremy. lock@vestemi. com or; Matt Sheen Commercial Manager, matt. sheen@vestemi. com www. radbot. com www. Vestemi. com 05/11/2020 Private and Confidential Page 13

Appendices https: //www. youtube. com/watch? v=NANBSsmjoao https: //youtu. be/t 9 J 7 q 9 wb-VU

How it works – 1 • Occupancy can be detected through changes in light levels to 90+% confidence levels • The device continually refreshes it's understanding of occupancy. • The temperature is controlled through small motor driven adjustments. • Device has 3 sensors; light, temperature and humidity. It also has an adjustable dial, a boost button and an onboard microprocessor. It is battery powered, has a motor to drive the valve pin in and out, and also contains a data transmissions secure radio unit. • The device anticipates the heating requirement and uses a set back algorithm to ‘clip’ small increments of temperature more or less aggressively according to the user setting of the dial. • The user can override the programme by pressing the boost button to get a controlled period of increased heat. • The device measures these parameters and uses AI techniques to build a probabilistic predictive model of when heat is likely to be required in a room 05/11/2020 Private and Confidential Page 15

How it works – 2 1) You set a number on Radbot’s dial just like a mechanical TRV. Higher numbers mean more comfort. In Radbot’s case that means both a higher target temperature when the room is occupied AND less aggressive energy savings. Turn it down and Radbot will lower the target temperature and more aggressively look for opportunities to cut the heat and save more energy. 2) Radbot reacts to live clues of occupancy and need for heat, e. g. flicking a light on or drawing curtains means occupancy whereas dark, especially for extended periods, means that Radbot can safely set back the heat. 3) Radbot also computes a rolling 8 -day memory of occupancy in 1 -hour slots. 4) If Radbot thinks you’re around now, you’ll get full target temperature. if Radbot thinks you might be, or will be soon, you get a small 1 C or 2 C temperature setback to save energy. No more than 3 C if the room is light, but that is enough to get most of the target 30% savings. Radbot also looks ahead and tries to bring the room nearly to temperature in the hour before likely occupancy to minimise walking into a cold room. Maximum night setback is 6 C. 05/11/2020 Private and Confidential Page 16

ROI – energy savings c £ 180 per annum Based on the average gas consumption of a semi-detached home in the UK, a 30% Energy Saving equates to an annual endcustomer saving of £ 176. 28. For a standard home the end customer investment for 5 Radbots will be paid back by the Energy Savings within around 14 months which equates to an IRR of 87. 9%. We have considered several low-end scenarios across these three factors (Table), which demonstrates strong returns for the end customer even if all the sensitivities are stressed. We believe that this demonstrates what a strong investment Radbot is for customers wishing to saving money on their energy bill and/or save carbon. Radbot IRR Calculation Basis In calculating the Energy Savings and IRR we have made the following assumptions: • End customer cost of Radbot is £ 39. 99 (incl. VAT) in line with our current retail pricing for multiple units as set out on www. radbot. com B 2 B 2 C customers may choose to price this differently. • Median gas consumption of a semi-detached house in the UK • Average retail price for gas in 2018 excluding standing charges • 85% of gas consumption in the house is for space heating • Batteries replaced every two year in line with the design and bench tests. • Financial returns calculated over 10 years as per design life. Note that due to the discounting nature of the IRR calculation reducing this to a more conservative 5 -year return has only a modest impact on the resulting IRR value (e. g. the core case reduces from an IRR of 87. 9% to 84%). 05/11/2020 Private and Confidential Page 17

Carbon savings Derivation of carbon savings for Radbot Emission Factor for gas = 0. 184 kg/CO 2 e/k. Wh Assume average UK gas consumption (semi-detached property) 15, 500 k. Wh/pa 85% is space heating = 15, 500 x 0. 85 = 13, 175 k. Wh/pa 30% saving = 13, 175 x 0. 30 = 3952. 5 k. Wh/pa Carbon saving = 3952. 5 x 0. 184 = 727 kg CO 2 e pa Assume 5 Radbots Per Radbot = 145 kg/pa Approximately 0. 14 tonnes of CO 2 e per Radbot per year (~ 0. 73 tonnes per year for an average house) 05/11/2020 Private and Confidential Page 18

Radbot Communications Radbot has been designed as a non-connected device to maintain simplicity for the consumer. Radbot cannot be connected to or controlled from Wi-Fi or Bluetooth connected tablets or phones. This is a deliberate design decision. Under normal circumstances there will be no reason for a customer to understand how the device may be connected to wider systems. The Radbot 2 R version contains a radio unit which is an 868. 5 MHz ISM EU 48 Band radio with a proprietary encrypted protocol. The current version is a one way radio only, which emits encrypted data at regular (2 minute) intervals. We currently use a proprietary ‘data relay’ unit to collect and transmit data. The data cannot be collected or decrypted without using the data relay unit. This data retrieval facility has been designed to support energy saving trials and potential partners who wish to access the data as part of a wider energy management solution. Currently Vestemi set up relays to allow the data to be retrieved to a Vestemi controlled server environment via an ethernet connection in the local household or location’s router. 05/11/2020 Private and Confidential Page 19

Warranty – 1 The importance of describing the product It is important that we jointly do not mislead the consumer in regard to the description of what the product is and does. Performance guarantees Vestemi will not warrant that use of Radbot will achieve specific energy savings, but we will provide certification and accreditation and make public the test evidence we have gathered to support the claim that it will save energy consumption and carbon emissions. We would recommend that any statements made regarding performance are carefully considered and measured and without any guarantee. In general, the expected performance envelope is as follows: Radbot typically saves 20 - 30% of the energy used for heating in average UK homes, when compared to manual TRVs. Standalone Radbots (with no boiler control) have been observed saving 30%+ through Vestemi’s Brent 58 -home trial and in friends and family tests. This has been further supported by our Salford House tests. Savings of 15% against manual TRVs when Radbot is set to the mid-dial temperature setting are supported by our current internal numeric models. The savings are dependent on user habits and the dial setting. At lower temperatures Radbot is also more aggressive at cutting waste heat. Built into Radbot are simple automated mechanisms to counter typical user habits, such as turning TRVs up to MAX when cold and forgetting to ever turn them down again. 05/11/2020 Private and Confidential Page 20

Warranty – 2 Warranty and Treatment of faulty goods It will be important for the supplier to determine what undertakings are being given to end user customers. Vestemi will work with the supplier to ensure expectations are carefully managed and appropriate statements are being made. Warranty statement • Warranty: 2 years from delivery to the customer (not installation) • The warranty is applicable only when the product is used in accordance with the guidelines • • published by Vestemi has the option of repair or replace if defective. Batteries, general wear and tear or misuse are excluded. Software is licensed with no warranty. None of this overrides any rights granted under the UK Sale of Goods and Consumer Rights Acts General warranty terms and conditions are set out in our Terms and Conditions of sale, including the treatment of defective goods and product returns. 05/11/2020 Private and Confidential Page 21

Mitsubishi Electric Pete Mc. Naughton

Climate Emergency Oil Boiler Replacement Pete Mc. Naughton peter. mcnaughton@meuk. mee. com HVAC MARKET LEADER

Oil Boiler & Fossil Fuel Replacement HVAC MARKET LEADER

Why Are We talking about Oil? • Climate Change Act • 2. 0 million homes with oil • 80, 000 new boilers installed each year • Producing 8 Mt. CO 2 e • Easy target for Government HVAC MARKET LEADER

Why Are We talking about Oil? £ 2. 5 B HVAC MARKET LEADER

Cost of a new Oil boiler installation HVAC MARKET LEADER

Oil Installation Cost • New Oil Tank – Strict compliance for replacement tanks – Many oil tanks cannot be changed without additional works • • • Must be by OFTEC Approved Engineers Requires more control (weather compensation, TRV’s, timeclock) Mandatory to install a Condensing boiler (lower flow temp) Full power flush cleanse & fresh inhibitor CO detector requirement HVAC MARKET LEADER

Cost of a new Oil boiler installation Central Heating Component Oil Central Heating System Details Cost - Includes boiler, oil storage tank, water tanks, radiators, piping, and labour £ 4, 000 - £ 6, 000 Oil Boiler - Average prices of combi, conventional, and system oil boilers £ 1, 285 - £ 3, 700 Oil Storage Tank - Average prices of single-skinned and bunded tanks £ 500 - £ 2, 000 Oil CHS Running Costs - Total depends on heating and hot water demand £ 700 - £ 1, 250 HVAC MARKET LEADER

Current Oil Prices & Trend Figures from HVAC MARKET LEADER

Cost of running an Oil Boiler Existing Oil Boiler New Oil Boiler Ecodan System • 65% efficient • 50 pence per litre • 7. 66 p per k. Wh • 85% efficient • 50 pence per litre • 5. 86 p per k. Wh • 300% efficient • 13. 5 pence per k. Wh • 4. 5 p per k. Wh HVAC MARKET LEADER

Cost of running an Oil Boiler EFFICIENCY HEATING COST (pence per k. Wh) FUEL COST (pence per litre / k. Wh) HEATING COST (pence per k. Wh) 300. 00% 7. 5 5. 5 4. 5 Ecodan = 40% cheaper than Existing Boiler & 18% cheaper than a new boiler HVAC MARKET LEADER 47 47 14 EX BO IST ILE IN R G O IL RE NT PL SY O AC ST IL EM E C SY OD ST A EM N 85. 00% EX OI IST L B IN OI G RE LER N PL SY T O AC ST IL EM E C SY OD ST A EM N EX BO IST ILE IN R G O IL RE SY PL ST AC EM EM EN T EC OI OD L AN SY ST EM 65. 00%

Oil Delivery & Cost • • Typical 2 -3 fills per year The more heat pumps we sell. . . The fewer deliveries a tank will make… The cost will…. . HVAC MARKET LEADER

Carbon Saving • Oil Boiler – 310 -550 g. CO 2 ek. Wh • Grid Electricity – 370 g. CO 2 ek. Wh • Ecodan – 105 -148 g. CO 2 ek. Wh 70% reduction HVAC MARKET LEADER

Carbon Saving • 3 Bed property using 12, 500 k. Wh per annum • Carbon Reduction of 3, 800 kg. CO 2 ek. Wh Like flying from London to Tokyo And Back Again HVAC MARKET LEADER

Environmental Damage • Just 2 litres of oil could seriously pollute the volume of fresh water needed to fill an Olympicsize swimming pool • Oil Boiler owners need specific insurance to cover the full cost of clean up • Up to £ 20 - £ 50 k clean up costs HVAC MARKET LEADER

Oil Theft • 51% increase in 6 years • Approx. 10, 000 domestic cases reported each year • £ 4 million stolen in 2016 HVAC MARKET LEADER

Electricity Theft • The Figures are shocking!!! HVAC MARKET LEADER

Oil Boiler Replace Case Study https: //les. mitsubishielectric. co. uk HVAC MARKET LEADER

Thankyou Any Questions? Peter Mc. Naughton Peter. mcnaughton@meuk. mee. com 07595566482 HVAC MARKET LEADER

National Energy Action Matt Copeland

Summer Policy Update July 2019

Highlights in this Quarter Climate Change Agenda BEIS Select Committee EE Inquiry Network Regulation for Vulnerable Customers Water Poverty Update

In the News - Climate Change

Climate Change 3 Major things have occurred recently: 1. Extinction Rebellion Protests 2. Declaration of a climate emergency in Parliament 3. CCC report on reaching net-zero What NEA have said: “We agree with the committee; ending fuel poverty and ambition for our climate are indivisible, not inimical. There is now a huge opportunity for the UK Government, devolved nations, industry and campaigners to demonstrate how the most vulnerable people in our society can be the first to benefit from this necessary transition. ”

BEIS Select Committee EE Inquiry Committee Recommendations EE should be a national infrastructure priority Government needs to create a centrally funded energy efficiency scheme Advice is crucial to meeting FP and net zero targets WHD payments should not count towards meeting fuel poverty targets PRS MEES cap should be increased to £ 5 k BEIS now need to respond to the findings from the inquiry

Ofgem RIIO 2 Proposals Ofgem have confirmed their decision on the initial RIIO 2 proposals: ü FPNES will continue ü There will be a use it or lose it fund of £ 30 m for programmes supporting vulnerable customers ü There will be an enforceable licence condition ensuring that GDN’s give due concern to customers in vulnerable situations Next Steps – NEA will be involved with Ofgem’s work to define the details of each of these.

Regulation for Vulnerable Customers The ‘Commission for Customers in Vulnerable Circumstances’ has published their final report, with numerous recommendations for how suppliers, Ofgem and BEIS can improve their treatment of vulnerable customers. Amongst many other things, key recommendations include: • Keeping social tariffs in scope • A new, independently monitored vulnerability Code of Conduct for energy suppliers. • A more consistent approach to helping vulnerable customers across the industry Full report here https: //www. energyuk. org. uk/publication. html? task=file. download &id=7140

Ofgem’s Strategy for Consumers in Vulnerable Situations Ofgem are consulting on their vulnerability strategy, where they set out what they will do to: • Encourage better use of data to identify vulnerabilities • Make bills more affordable • Drive significant customer service improvements for vulnerable customers • Encourage positive and inclusive innovation • Work across multiple sectors. We are strongly advocating that they take up all of the recommendations from the commission. In addition to this, we will be campaigning for: - A consistent approach to distributional analyses to ensure fair decisions for all customers - Enforcement of non-compliance against the vulnerability licence condition in a timely and robust manner - Ofgem should make better use of its powers to require information from all suppliers on how their service meets the needs of customers in vulnerable circumstances

What’s coming up? Fuel Poverty Strategy (“Summer” 2019) Comprehensive spending review ? Energy White Paper

Thank you Any Questions? Contact details: matt. copeland@nea. org. uk www. nea. org. uk

Contact Details: Cliff. duff@durham. gov. uk Susan. carr@durham. gov. uk