“Severe and damaging” impact of watered down energy standards

Written by Chas Booth on . Posted in Campaigns

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News release from the Association for the Conservation of Energy

For immediate release: Monday 13 May 2013

 

Scottish Government Ministers are coming under increasing pressure not to backtrack on their plans for greener buildings. The Association for the Conservation of Energy (ACE) [1] today warned there would be a “severe and damaging impact” if as feared there is a delay and watering down of green standards for new homes. In a strongly-worded letter[2] to John Swinney, Cabinet Secretary for Finance, Employment and Sustainable Growth and Derek Mackay, Minister for Local Government and Planning, in the Scottish Government, they urged the Government to stick to its original roadmap – the so-called Sullivan Report – to deliver very low carbon new buildings in 2013 and zero-carbon new buildings in 2016.

 In the letter, released today, Andrew Warren, Director of the Association for the Conservation of Energy, said,

 ”You have announced your intention that the 2013 changes to Section 6 (Energy) of Building Standards be delayed until 2014 and watered down from the roadmap set out in the 2007 Sullivan Report, and previously accepted by your Government. Now the Sullivan panel is re-convening, with the impression being given that their remit is to further delay and water down the 2016 changes to Section 6.

If this occurs, the effect on this industry will be severe and damaging, as those who know – the leaders of major companies concerned with this market – testify.

I urge you to implement the original Sullivan recommendations urgently.”

 The Sullivan panel was set up in 2007 to fulfil an SNP manifesto pledge to “establish an expert panel to report on the changes we need to make to building regulations in Scotland to increase energy efficiency” [3]. The Sullivan report recommended introduction of low carbon new buildings in 2010; very low carbon new buildings in 2013 and zero-carbon new buildings in 2016 [4]. The recommendations were accepted and endorsed by Stewart Stevenson MSP, then Minister for Transport, Infrastructure and Climate Change.

 The current Minister for Local Government and Planning, Derek Mackay MSP, announced his intention in December 2012 that the Government would consult on introducing new standards in 2014 which offered only a minor improvement over current standards, and delaying the implementation by a year, contrary to the Sullivan recommendations [5]. The consultation launched in January 2013 and proposed a 21% improvement, well below the Sullivan recommendations[6]. Mr Mackay then reconvened the Sullivan panel in May 2013 with a remit to “revisit” the original recommendations in light of the economic downturn post-2007[7]. The clear implication is that the 2016 zero-carbon standards would be delayed and watered down.

 ENDS

 Contact:

Chas Booth

Senior Press & Parliamentary Officer

Association for the Conservation of Energy

07905 147552

 

Notes to editors

[1] The Association for the Conservation of Energy (ACE) is a lobbying, campaigning and policy research organisation, and has worked in the field of energy efficiency since 1981. Our lobbying and campaigning work represents the interests of our membership: major manufacturers and distributors of energy saving equipment in the United Kingdom. ACE is a member of both Stop Climate Chaos Scotland and the Scottish Fuel Poverty Forum.

 More info from our website:

 

[2] The full text of the letter follows (and is also available here: Section 6 letter May 2013)

 Please don’t  damage our industry

 Open letter to the Cabinet Secretary for Finance, Employment and Sustainable Growth John Swinney MSP and the Minister for Local Government and Planning Derek Mackay MSP

 May 2013

Dear Cabinet Secretary, Dear Minister,

 Section 6 (Energy) of Building Standards

 You have announced your intention that the 2013 changes to Section 6 (Energy) of Building Standards be delayed until 2014 and watered down from the roadmap set out in the 2007 Sullivan Report, and previously accepted by your Government. Now the Sullivan panel is re-convening, with the impression being given that their remit is to further delay and water down the 2016 changes to Section 6.

If this occurs, the effect on this industry will be severe and damaging, as those who know – the leaders of major companies concerned with this market – testify.

I urge you to implement the original Sullivan recommendations urgently.

 Yours sincerely,

 Andrew Warren, Director

Association for the Conservation of Energy

 

‘Less investment and fewer jobs’

Robert Barclay, Managing Director (UK) and ROI of SIG plc:

“The lack of clarity from the Scottish Government on Section 6 2013 is unhelpful. Our company has made a significant investment against the backdrop of the stated Section 6 timetable comprising two joint ventures centred around the marketing of high energy performance building systems and a team of specialist people with the sole aim of advising the house building community as to the most effective product solutions required to meet the revised regulations.

“If the Section 6 2013 amendment is postponed/withdrawn this is not only disappointing for those who endeavour to differentiate through innovation but it will further knock confidence in our business and the wider sector which will inevitably result in less investment and fewer jobs.”

SIG plc is UK largest distributor of insulation and related products, employing 3,500 people.

 

‘Wasted investment’

John Sinfield, Managing Director, Knauf Insulation Northern Europe:

“The expected amendments to Section 6 offer a real opportunity to increase investment as well as secure job opportunities, and also future proof the UK’s homes against fuel poverty. As a manufacturer, we have invested accordingly, but with no Scottish Government certainty for the industry, the abandoned roadmap to zero carbon represents a significant wasted investment for the energy efficiency sector.”

Knauf Insulation Limited is the leading UK manufacturer of insulation materials. We employ 580 people across four sites in the UK.

 

‘Damage to a fragile industry’

David Robson, Managing Director, Instagroup:

“Any decision to delay or weaken Section 6 changes will further damage a fragile industry and result in further job losses and will lead to less investment in this industry.”

Instagroup is the leading systems designer for insulation and sponsors the UK’s leading energy efficiency network.  Instagroup is a Green Deal provider and has invested in Green Deal finance.

 

‘A huge impact on our future investment’

Alex McLeod, Chief Executive, Superglass Insulation:

“The timetable for implementation of Section 6 Building Regulation, including a 60% improvement on 2007 standards in the domestic 2013 regulations and a move to Zero Carbon homes in 2016 is critical to investor confidence.  Superglass PLC raised substantial investment capital in 2011.  Critical to continued investment is confidence in the regulatory framework which is a significant driver of growth in energy efficiency products and service.  Any delay in the implementation of Section 6 will have a huge impact on our future investment plans.”

Superglass is one of the last remaining independent building materials manufacturers, and is based in Stirling.

 

‘Negative impact on export market’

Peter Wilson, Managing Director, Kingspan Insulation:

“Kingspan Insulation has been planning and implementing product developments and improvements in construction best practice and materials to support the Zero Carbon Homes initiative. I therefore find it of great concern that there is a lack of clarity around the Scottish Government’s timetable for the proposed 2013 Section 6 implementation.

“If the Regulations do not meet the standards required by the roadmap for carbon reduction commitment, then investment and growth in the construction sector is likely to be inhibited. This will impact negatively on the ability of manufacturers to invest in developing competitive products for export markets.”

Kingspan Insulation is the largest manufacturer of rigid insulation products in the UK. We employ over 400 people and have over 40% of market share.

 

‘Deter innovation’

Eamon McDonnell, Managing Director Saint-Gobain Isover:

“Delay in the implementation of Section 6 has undermined the roadmap that had been set out to achieve zero carbon homes and will impact on the timing and scale of future investments in glass wool insulation manufacture in the UK. It will also deter innovation in the housing sector and leave new house owners saddled with unnecessarily expensive running costs for their homes.”

Saint-Gobain Isover is the global leader in the manufacture of mineral wool insulation and has been present in the UK as a glass wool manufacturer for over 30 years.

 

‘A potential blow to the economy’

Jayne Law MBE, Commercial Director, Dow Building Solutions:

“At Dow we believe the proposed changes to Section 6 would have provided substantial environmental and economic benefits. It will be a serious disappointment to those committed to a greener future for Scotland as well as a potential blow to the economy if the clear support within the industry for the introduction of these positive measures is not embraced and taken forward.”

Dow was the sole sponsor of the Energy Efficiency Mission Launch Event at the Royal Society on February 4, at which the Prime Minister gave his long-awaited keynote speech on the importance of energy efficiency to our economy.

 

‘Small companies should not be penalised’

Nick Hunt, UK Sales Director, Honeywell Control Systems:

“Honeywell is proud to have invested considerable time and effort in developing products and training installers. The good installers who have already embraced the necessary changes would be disadvantaged by having the rug pulled out from under their feet by delays in Section 6. These small companies have invested time and effort in keeping up to date and should not be penalised. Nor should their customers – consumers – be disadvantaged, as they continue to be sold products that may not have the energy efficiency benefits that are included in most modern heating controls.”

Honeywell is a major manufacturer of energy controls, employing over 7,000 people in UK, many in manufacturing facilities. They have facilities in 75 different constituencies, and manufacture in 20 constituencies. The biggest are directly affected by the Building Regulations.

 

 

[4] Scottish Government (2007) A Low Carbon Building Standards Strategy for Scotland (The Sullivan Report)

 

[5] Scottish Government press release, 10/12/2012, “Greener buildings”

 

[6] Lower Carbon Buildings – a review of energy standards and guidance within Scottish building regulations, Scottish Government, 14 January 2013

 

[7] Scottish Government announcement – Sullivan panel to reconvene, April 2013

 

Energy Bill Amendment Briefing

Written by Jenny Holland on . Posted in Campaigns, Current Campaigns

© CC-BY-NC 2005 Matthew Kirkland

The Government’s Energy Bill is currently being scrutinised in Committee.  The draft Bill was heavily criticised for containing no provisions for reducing electricity demand.  Since then we have welcomed the publication of a DECC consultation on policy options to encourage permanent reductions in electricity use.  However, we are also pushing for the Energy Bill to be amended to require the Government to establish a scheme to incentivise electricity demand reduction within a year of the passing of the Act.

Download ACE’s briefing to committee members MPs on our amendment on electricity efficiency incentives using the link below:

ACE Committee Stage Briefing-Electricity Efficiency Incentives [842 kB]

Two Cheers for Government’s new Energy Efficiency Strategy

Written by Jenny Holland on . Posted in Articles and Blog, Campaigns, Perspective

ACElogo

The Association for the Conservation of Energy has given a qualified welcome to the Government’s new Energy Efficiency Strategy, published today.

While welcoming the publication of a strategy dedicated solely to energy efficiency – the first of its kind since 2004 – ACE says that the Government has shirked its responsibility by failing to set out a clear target for energy efficiency. The Association is also disappointed that DECC has fought shy of setting out what further policies will be needed to plug the gap between what can be achieved and what current policies are expected to deliver.

ACE Director Andrew Warren said: “While welcoming the publication of a dedicated energy efficiency strategy and the establishment of a dedicated Energy Efficiency Deployment Office, the absence of clear targets for energy efficiency is a real disappointment. The Strategy tells us that 196TWh of energy savings are “possible” in 2020 – but totally fails to commit Government to achieving these savings. We have seen all too often how, in the absence of firm targets, Governments fail to put in place adequate policies or resources to achieve them. As things stand, this is a wish list, not a strategy.”

“We will therefore be urgently pressing Government to put binding targets in place. We will also be asking them to bring forward new policies to plug the 33TWh gap between what they say is achievable and what current policies are on course to deliver. The main way in which they can do this is by committing to use the carbon tax revenues they will get from next year to transform the energy efficiency of the housing stock – the central demand of the Energy Bill Revolution campaign. And if they’re really saying that we can save energy equivalent to 22 power stations, then why do the Government’s proposals for electricity market reform completely fail to give energy efficiency a chance to compete on equal terms with supply-side solutions?”

Invest in energy efficiency and kick-start the economy

Written by Jenny Holland on . Posted in Campaigns, Current Campaigns, Energy Bill Revolution

An influential report published today shows that investing in improving the energy efficiency of our homes is the best way to create jobs, stimulate the economy and tackle fuel poverty. The Consumer Focus report – ‘Jobs, growth and warmer homes’ – compared the economic benefits of energy efficiency investment with a wide range of other Government spending options.

It concludes that investing the money received from carbon taxes in a major retrofit programme would generate more growth and jobs than alternative Government infrastructure investment, cuts to fuel duty or VAT. It could create up to 130,000 jobs, give a significant short-term boost to GDP and lift 9 out of 10 households out of fuel poverty. Jenny Holland, Head of ACE’s Parliamentary Team, said:

“These findings confirm what we have always believed: that investing in energy efficiency is not only good for the environment and hard-pressed households, but it’s also the right way to kick-start our economic recovery.”

“That’s why we are key players in the Energy Bill Revolution campaign, which is calling for the revenues Government gets from carbon taxes to be used to transform the energy efficiency of the UK’s housing stock. With fuel bills rocketing, nearly 9 in 10 households will ration their fuel use this winter to save money. Meanwhile funding to help fuel poor households is being slashed by almost a third – with spending on energy efficiency cut by over half in the 3 years to 2013. That’s why we urgently need an Energy Bill Revolution.”

“Let’s hope the Treasury will take a long, hard look at today’s report and see the light. Quite apart from the environmental and social benefits of energy efficiency investment, it simply makes perfect economic sense.”

Energy Bill Revolution

Written by Jenny Holland on . Posted in Campaigns, Current Campaigns

energybillrevolution

A new campaign to help households reduce their energy bills and make their homes warmer has been launched by ACE and others.

The Energy Bill Revolution Campaign calls on Government to invest the money it receives from carbon taxes into improving the energy efficiency of our homes.

From 2013 Government will receive a huge increase in revenue fom two key carbon taxes – the sale of allowances in the EU Emissions Trading Scheme and the new Carbon Floor Price. Research commissioned by the Campaign has calculated these revenues will be on average £4bn a year.

If invested in energy efficiency in the housing stock, this money could remove 9 out of 10 households from fuel poverty, it could produce four times the carbon savings achieved by Green Deal and Energy Company Obligation together and could create between 30,000 and 50,000 direct jobs and up to 200,000 indirect jobs in the wider economy.

Please join the coalition and support the campaign by signing our petition today.

Using carbon revenues to cut costs and carbon

Written by Louise Sunderland on . Posted in Campaigns

Next year the EU Emissions Trading Scheme (EU ETS) will, for the first time following a long period of ramping up, allow the trading of the majority of the eligible emissions in Europe.

With the auctioning of allowances will come significant new revenue, estimated to be between €10bn and €20bn per year to 2020, depending on the carbon price.

As the realisation of the new revenues approaches, Member States are beginning to announce intentions with regard to the use of the funds. A good number of countries have made announcements and begun legislative processes that will establish the use of the ETS Phase III revenues for climate protection purposes.

This short briefing reviews some of the plans in place in Member States and considers the UK’s position on the use of the revenues, which are expected to be £2bn in 2013 and an average of £4bn a year over the next 15 years.

Read ACE’s briefing here.

Hills Review Briefing

Written by Louise Sunderland on . Posted in Campaigns

hills_logo.pngOne of the Hill’s Review of Fuel Poverty’s main conclusions on policies to address fuel poverty was:

Narrowly targeted supplier-driven policies would have the largest effects on fuel poverty, on the assumption that suppliers reacted to their incentive to maximise cost-effectiveness.

Given the regressivity of raising funds for an energy efficiency programme from energy bills, it seems to be counter intuitive that a supplier funded programme would be more effective than a publically funded one.

ACE explores how this misleading conclusion was arrived at.

Read ACE’s briefing.

Government slashes fuel poverty spending

Written by Louise Sunderland on . Posted in Campaigns, Current Campaigns, Energy Bill Revolution

Government has released its fuel poverty figures for 2010 today. The figures show the numbers of households suffering from fuel poverty fell by 0.4m in the year of highest expenditure on energy efficiency.

The official projections for this year see levels rise again to 3.9m households which is close to the 13 year high of 4m households in 2009.

In a statement released alongside the figures, DECC acknowledges that higher incomes and greater improvements in energy efficiency in the housing stock are the cause of the fall in fuel poverty in 2010.

In 2009/10 investment in energy efficiency targeted at fuel poor households was at a recent high of over £1.1bn. However, a briefing released by ACE today shows that investment in energy efficiency, has suffered cuts of 17-18% for two years and will have been slashed by over 50% of the 2009/10 levels next year.

Total expenditure taregted on alleviating fuel poverty has been cut by almost 30% in 3 years.

Clearly investment in energy efficiency of the housing stock is effective at addressing fuel poverty. That is why ACE has joined with 80 other organisations in calling for the Government to support the Energy Bill Revolution, a campaign asking for carbon tax revenues to be used to make our homes highly energy efficient, prioritising those of the fuel poor.

Please join the Energy Bill Revolution by signing the petition.

Download the ACE Briefing on National fuel poverty budgets

See the ACE Press release- Fuel poverty spending levels plummet

Hills Fuel Poverty Review

Written by Pedro Guertler on . Posted in Campaigns, Current Campaigns, Fuel Poverty Bill

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Reacting to today’s final report of Professor John Hills’s Fuel Poverty Review, the Association for the Conservation of Energy welcomes his clear conclusion that current Government policies fall far short of what’s needed to meet their legal duty to eradicate fuel poverty by 2016. ACE also welcomes Hills’s emphasis on energy efficiency as the most effective way of reducing fuel poverty.

However, the Association deplores the Government’s reaction to the Review – a promise merely to adopt a new approach to measuring fuel poverty by the end of 2012. What is needed well before then are clear policy proposals to put the Government back on course to fulfil their legal duty.

Commenting on the report, Head of Parliamentary Team Jenny Holland said:

“Professor Hills has shone an unflattering spotlight on Government efforts to tackle fuel poverty, making clear that much more needs to be done – and urgently – if the 2016 target is to be met. Hills shows that current policies will reduce the number of fuel poor households by a mere 150,000 by 2016. This is a drop in the ocean compared with the nearly 3 million households that even he concedes will still be in fuel poverty. In light of this clear and pressing need to do more, today’s Government reaction to the report beggars belief. We don’t need them to spend nine months deciding on a new definition – instead they should spend that time agreeing a watertight plan to ensure that their statutory commitment to eradicate fuel poverty by 2016 is met in full. Without that, millions of fuel poor households will feel, quite rightly, that the Government has simply abandoned them.”