To receive a presentation from Scott Davis from GHE Solar LTD.

Scott Davies of GHE Solar Ltd gave Members a presentation on Energy Company Obligation (ECO) Local Authority Flexibility schemes and Members noted the following key points:

Ø  GHE were a Berkshire based company based in Newbury.

Ø  They operated nationally

Ø  They installed energy efficient measures on ECO and previous schemes. The vast majority of the work they carried out included Cavity and Loft insulation and replacement gas boilers under ECO.

Ø  Non ECO-Solar PV, Solar Thermal (hot water), Air Source, heat pumps, ground source heat pumps, Biomass Boilers, smart heating controls were all carried out by GHE.

Ø  They installed to around 15,000 households each year on ECO schemes.

Ø  GHE were a British Gas partner and they were also talking to other LA’s regarding potential scheme implementations.

Ø  ECO began in 2013 and mandated energy suppliers with greater than 25,000 customers to join the scheme. They were obligated suppliers must fund energy efficiency improvements to households.

Ø  The Big 6 energy companies that rang these schemes did so through third parties such as GHE. GHE installed the equipment free of charge for the end user and received payment from the energy company.

Ø  There were currently two categories of funding for ECO.

o   CERO was available to all households

o   HHCRO was available to those considered fuel poor – households needing to decrease costs and who were in receipt of certain benefits.

Ø  ECO3 was only available to the fuel poor (HHCRO) and would start in October 2018 until April 2021.

Ø  HHCRO was determined by qualifying benefits or by Local Authority Flex schemes.

Ø  Local Authority Flexible Eligibility (LA Flex) allowed LA’s to designate a household as fuel poor.

Ø  LA Flex allowed households that might struggle with energy bills but were not eligible for qualifying benefits obtain funding for energy efficiency measures.

Ø  LA Flex was highly relevant in the South East of England due to the high cost of living in the South East.

Ø  Due to high living costs in the South East meant vulnerable households had a higher income but lower disposable income than other parts of the UK; they might not be eligible for benefits but might still be fuel poor.

Ø  Statement of intent:

o   To provide LA Flex the council needed to publish a statement of intent.

o   Currently 133 councils had already published their statements of intent. Templates were available and it was possible to adapt them for the council’s existing use.

Ø  Currently councils that had signed up to the scheme included the London Borough of Barking & Dagenham, Barnsley Metropolitan Council, Basingstoke & Dean Borough Council, among others.

Ø  Possible Routes:

o   Councils promote ECO to households.

o   Install firms promote to households.

o   Data analysis by install firms from council data and promotion to households.

Ø  Council promotion of the scheme:

o   Council promotes to householders.

o   Council takes enquiries.

o   Councils provides details of enquiries to install firms.

o   Council signs off households as eligible (LA Flex).

o   Council point of contact for householder

o   Required council resources

o   Council promotes commitment to reducing poverty.

Ø  Installer promotion:

o   Installer promotes to households

o   Can explain to householder that it is in conjunction with council or not mention council depending on council preference

o   Installer collects details of eligibility

o   Installer supplies eligibility details to council

o   Council signs off household as eligible.

o   Installer point of contact for householder

o   Requires little resource from council

o   Council can demonstrate commitment to reduction of fuel poverty.

Ø  Data analysis:

o   Council provides housing data

o   Data anonymous and held securely – GDPR compliant

o   Data analysed to target possible eligible households

o   Promotion made to households by installer in conjunction with the council.

o   Installer collects details of eligibility

o   Installer supplies eligibility details to the council

o   Council signs off households as eligible.

o   Installer point of contact for householder

o   Requires little resource from council

o   Data analysis funded by installer and the council can access the results

o   Smarter way to target eligible households.

Councillor Coppinger stated the Borough had no housing stock of its own. Scott Davis confirmed the scheme was more about whether the Council had data on local social housing; did the Council hold additional information on housing. As the Royal Borough did not have their own housing stock, therefore, it might not be effective to use the data analysis model. David Scott, Head of Communities Enforcement and Partnerships queried what criteria the Council should be stipulating in their scheme such as boilers older than 2002. Scott Davis stated it was statutory for what could be submitted and be paid for. The Council needed to certify that the householder was in fuel poverty which allowed measures to be available to unlock energy efficient solutions. In order to decide on who qualified as fuel poor, the Council could make reference to local incomes, disposable incomes being below local average, but that would need to be evidenced. GHE were able to supply details of what other LA’s were doing.

Scott Davis confirmed for the Panel that there were other organisations such as charities that were also implementing the scheme. Bristol, Somerset and Gloucester Local Authorities had all joined together and produced a statement of intent and partnered with a non-profit organisation. GHE had carried out the installation on their behalf. He added that the Charities charged a type of finder’s fee as they produced the Statement of Intent used by the LA’s. Scott Davis also confirmed that an innovation grant had been used in other areas to draw down on, in areas such as Rotherham which had been granted by central government.

Scott Davis stated there were other competitors offering a similar scheme, but he could help produce the Statement of Intent that was required to implement the scheme. The Borough could also have multiple installers working in the area. Scott Davis added that his company had carried out work in the Royal Borough which made him think there would be HHCRO fuel poverty homes in the area.

Members thanked Scott Davis for his presentation and for answering all of their questions on the scheme.