Amber Rudd
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The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)
I congratulate the hon. Member for Arfon (Hywel Williams) on securing this debate on a subject that is very important to his constituents and to people suffering from cold homes generally.
The Government recognise that improving domestic energy efficiency helps consumers control energy bills and reduces fuel poverty. Of course, it also contributes to our challenging carbon reduction targets. We aim to reduce greenhouse gas emissions by at least 80% below 1990 levels by 2050. To drive up domestic energy efficiency, we have put in place a long-term and progressive programme focused on enabling consumers to improve the energy efficiency of their homes. We have set ourselves a target of ensuring 1 million homes make energy efficiency improvements by March 2015. The programme is innovative: the energy companies obligation, the green deal, the green deal home improvement fund and the renewable heat incentive are all world firsts. It takes time to establish and embed new markets, and to understand how incentives can work best with the grain of the market and in tune with our great diversity of households.
We have made significant progress. In total, around 797,000 homes had been improved by the end of August this year. There is still much to do and our programme reflects key underlying challenges: much of the easy energy efficiency work has been done; nearly all homes have had at least some loft insulation, although many could benefit from having it topped it up; and most of the easiest cavity walls have been filled. However, we need to move away from a culture of unsustainable grant-dependency to a different model—a more market-based approach. Our long-term aim is for consumers to be motivated to improve their homes and to be ready to meet some of the costs, with real and effective help for the most vulnerable. This is good for all bill-payers as subsidy goes where it can have most effect, and good for our economy as innovative businesses enter the market and develop better and cheaper products.
That is especially important as we start to tackle more expensive improvements, such as solid wall insulation. Only around 3% of about 8 million homes with potential solid wall insulation have been done, and yet the carbon saving from such improvements can be 10 times that of loft insulation. These challenges are not confined to the UK; other countries are closely watching what we are doing.
Cavity wall insulation has been a hugely popular measure, with around 2.6 million installations taking place under the predecessor to the ECO—the carbon emissions reduction target—between April 2008 and April 2012. Also, cavity wall insulations have accounted for 36% of all measures installed under the ECO.
Cavity wall insulation can be a highly effective means of improving the energy efficiency of homes, offering the potential for an average of 10% in energy savings. The vast majority of installations in homes have been successful and one leading industry body estimates that less than 1% of cavity wall insulations have caused consumer dissatisfaction. I know that British Gas is one firm that is now offering to install cavity wall insulation for free in nine out of 10 suitable properties, regardless of whether the occupant is a British Gas customer. This is a huge opportunity for consumers who could benefit from this measure.
However, it is important to recognise that cavity wall insulation is not suitable in certain areas of the UK, for example areas where wind-driven rain is prevalent, owing to increased exposure. The official British standard wind-driven rain index highlights the constituency of Arfon and surrounding areas as being high on the index, so the hon. Gentleman’s concerns about the suitability of properties in his constituency for cavity wall insulation may be well-founded.
Dampness in properties with cavity walls is almost always caused by rain rather than condensation, unless there is a problem with internal wall insulation. Rain gets into the cavity via a poorly maintained external wall—for example, rain can leak down pipes, gutters or poor pointing.
To establish whether cavity wall insulation should be installed, pre-installation surveys are essential, and the quality of the external brickwork is very important in areas of wind-driven rain. Surveys of the proper quality and robustness will identify those properties for which cavity wall insulation is suitable. Where cavity wall insulation is recommended, correct installation is of the utmost importance, as is the ongoing maintenance of the property. If these conditions are met, cavity wall insulation will be effective.
I am not in a position to comment on individual cases, although I appreciate that the hon. Gentleman specifically did not give any. However, I recognise the distress that this problem has caused a number of householders; we have corresponded on the matter. It may be helpful if I outline the consumer protections that are in place and the redress route for consumers.
The installation of cavity wall insulation must meet the requirements of the statutory Building Regulations 2000. The materials used to insulate cavity walls are also subject to specific standards. There is a range of qualifications and training for installers, but installers should follow British Board of Agrément or British Standards Institution regulations. Under the green deal and ECO schemes, installers must undergo a rigorous authorisation process to become authorised participants. They must then comply with a publicly available specification, which sets out requirements for the installation of energy efficiency measures in existing buildings, including cavity wall insulation. Furthermore, as the hon. Gentleman said, Ofgem requires ECO installers to contract independent inspections of 5% of all measures installed, including cavity wall insulation, to ensure that they meet required standards.
All insulation material installed under ECO’s predecessor scheme—CERT—was required to meet the regulations of the BBA or another UK Accreditation Service-accredited technical approval body for their thermal performance. In addition, all installers should have undertaken an inspection of the property to determine its suitability for cavity wall treatment. Moreover, all cavities insulated under CERT should have received a Cavity Insulation Guarantee Agency 25-year guarantee. This guarantee offers the assurance that defects will be fully investigated and rectified free of charge where that proves necessary, and I point out to the hon. Gentleman that the guarantee outlasts any company that may be liquidated.
I now turn to the general area referred to by the hon. Gentleman—his constituency and the surrounding areas. If the measure was installed under one of the predecessor schemes to the ECO—CERT or the community energy saving programme—consumers must first rely on the 25-year CIGA guarantee. If more than 25 years have passed, I recommend that the constituents consider seeking a new scheme, or going to their energy supplier to see what assistance it might be able to offer. If there is no effective guarantee in place, the energy company that originally funded the measure can be approached; it may be able to assist. Ofgem may help to trace that company. If Ofgem cannot help, a consumer may obtain further guidance from a local trading standards office or seek professional legal advice.
For vulnerable or low-income consumers, Citizens Advice may prove a useful contact. I note that the hon. Gentleman referred to his local citizens advice bureau. Nevertheless, if a group of citizens in his constituency are particularly affected by this issue, Citizens Advice might be a helpful sign-pointer or might give additional advice about other sources of support if it feels that the guarantee has not been properly looked at.
On learning of the hon. Gentleman’s concern about his constituency and the surrounding areas, staff in my office made inquiries and they have assured me that they have engaged with complainants on a case-by-case basis, and with the energy companies involved, and considered liability where that is appropriate. If he would like to pass me details about certain cases, I will take this issue up with CIGA, to ensure that the energy company responsible sticks to its obligations. I also understand that he has been in contact with CIGA; if he needs any assistance with that process, we will be delighted to follow up.
Cavity wall insulation is one measure that consumers can utilise to improve the efficiency of their homes. The successful implementation of our programme is dependent on encouraging consumers to take decisions to retrofit their homes with a range of measures that they can trust to deliver savings in energy consumption and in bills. I suggest that the hon. Gentleman encourage his constituents to consider other measures that may assist them in keeping their homes warmer for less.
We have put in place a robust framework that defines what measures are legally eligible for use within the green deal, alongside a robust methodology for estimating the savings that can be realised. To ensure that we are promoting the maximum number of energy efficiency measures possible and taking account of developments in energy efficiency product technology, we are committed to keeping our framework under review.
Earlier this year, we amended the Green Deal (Qualifying Energy Improvements) Order 2012 to allow two additional energy efficiency improvements to be installed under a green deal plan: more efficient circulator pumps; and storage waste water heat recovery devices, which are attached to baths or showers. Additional measures will also be included soon. There are energy efficient luminaires, including the first use of modern LED lighting in domestic properties; the use of replacement glazing panels for double-glazed windows; party wall insulation; and more efficient storage heaters.
My Department recently took over responsibility for household appliances. The cost of running household appliances has tumbled and in some cases halved, as tougher minimum performance standards have led to industry innovation and more and more energy-efficient products dominating the market.
Looking ahead, the smart meter roll-out will be an investment programme to modernise our outdated metering system and bring it into the digital age. I hope that when the hon. Gentleman’s constituents have their smart meters installed, it will make them more inclined to be aware of the opportunities for energy-saving devices and installations that are still around, which we hope can help them to make their homes warmer for less. The programme requires energy suppliers to complete the roll-out of smart meters to domestic and smaller non-domestic premises in Great Britain by 2020—
