Whats in the EESSH? Jonathan Grant Scottish Government Background - PowerPoint PPT Presentation

What’s in the EESSH? Jonathan Grant Scottish Government

Background • Sustainable Housing Strategy – tackling fuel poverty and climate change. • 2012 consultation. • Stakeholder working group. • Case study research and peer review. • Autumn / Winter 2013/14: – cost modelling, further discussions with stakeholders and risk management options.

The new standard • Based on minimum energy efficiency (EE) ratings to be achieved by 2020. • Designed to deliver energy efficiency improvements while being affordable for landlords. • Takes account of fuel types and dwelling types. • Takes account of hard to treat properties.

Ratings EESSH minimum ratings for 2020 EE Rating (SAP 2009) Dwelling type Gas Electric Flats 69 65 Four-in-a-block 65 65 Houses (non-detached) 69 65 Detached 60 60 Other fuels – SHQS requirements.

Example Case study D-11G: Post war semi-detached (84m2) Fuel type: Gas Baseline annual fuel costs: £1,512 Measures (SHQS & EESSH) Walls Cavity fill (£500) Roof 250mm at joists (£283) Full central heating Condensing combi (£2,500) Time and temp zone controls (£300) Low energy lighting 100% (£15) SAP rating @ 2020 C (70) Fuel saving (on baseline) £863 pa

Projected benefits • Savings in fuel cost – £130m pa for tenants, average of £210 & possibly more depending on fuel price inflation. • Reduced carbon emissions – 1,275 tonnes per dwelling or 761kt for social housing sector – equivalent to household emissions from Aberdeen and Dundee combined.

EESSH and the SHQS • Will replace element 35 post 2015. • Simpler & less prescriptive: achieve the minimum rating using a choice of measures. • Flexibility to link measures with funding streams. • Reduced monitoring and reporting requirements.

Estimated costs • Social housing sector already 64% compliant after SHQS. • £310m estimated cost for 88% compliance using only “Reasonable Measures.” • £900m estimated total cost for 99% compliance using all available measures.

Funding • ECO: “Reasonable Measures” are generally ECO eligible. • ECO changes – continuing to analyse potential impacts. • HEEPS - Mixed tenure and “enabling” funding to support admin costs and the challenges of involving owner-occupiers. • Others - Renewables, Warm Homes Fund, Green Homes cash-back etc.

Risk management • Asset management plan; stock analysis. • Flexibility on measures and timing. • Business as Usual (BaU) costs & life-cycle consideration. • Temporary Exemptions. • 2017 review: including consideration of future milestones, performance of funding streams, progress achieved by landlords.

Assessing options • Baseline stock data: Identify properties that do not meet the minimum EE ratings. • Modelling: – Consider anticipated BaU replacements / planned investment. – Consider reasonable measures. – Consider additional measures. – Future proofing?

Regulation • SHR risk and proportionate approach. • Self assessment. • Annual return with KPIs. • Planned to integrate with the Social Housing Charter’s housing quality standards (2017). • Technical guidance now available on the SHR’s website.

Information for landlords The EESSH website includes: • examples of case study properties, available measures and funding sources; • implementation guidance; • temporary exemptions guidance; • regulation information; • a guide for tenants; and • more will follow!

Next steps • Continue to engage with stakeholders and landlords on enquiries. • FAQ following initial feedback. • Previous versions of SAP.