Applying “Victor’s Razor” to UK energy policy

Let's give the UK the close shave it needs

You may remember Victor Kiam, the US entrepreneur of television fame who “liked the product so much he bought the company”.  In fact he bought the Remington Shaver Company out of collapse and turned what was a $30m dollar loss into a $47m profit.  Now, isn’t that what our chancellor is currently trying to do? Turn a huge loss into a profit?  But Victor’s motto was somewhat different to our Government’s: Blood, sweat and a 50% bonus if you win.  What we are getting from our Government is a soft, overcomplicated and frankly ineffective approach to energy policy and the wider economy.

I guess you’ve all heard the expression, ‘the simplest strategy is usually the best’. This is an idea which has its roots as far back as Aristotle and has been applied to all manner of human endeavour for centuries, including developing the scientific method, politics, religion and business. I would encourage you to read more about Occam’s Razor and the KISS principle of design for some good examples of this approach.

However, this approach seems to be distinctly lacking in our government and public sector.  Our current energy policy is a mess of overcomplicated, EU imposed regulations that stifle innovations in the energy efficiency sector, ignoring simple approaches that could actually help the UK, whilst promoting a “carbon savings” policy that only really benefits the energy companies and the sales of less than efficient consumer energy products.

Head of BusinessEurope Markus Beyrer recently said that the EU “doesn’t have an energy policy. It has a climate policy”. This is something I wholeheartedly agree with, and it seems that the longer the EU (and therefore the UK) continue this approach the further behind the US we will slide.

The simplest answer is usually true, and this applies to our energy policy. We do not need to promote costly, complex policies and technologies, as we are currently doing with our renewables-centric, carbon saving policy. Instead we should look to simple, proven strategies such as improving energy efficiency of our current infrastructure, and reducing our energy usage. There is a tendency for societies and even humanity at large to seek out complex, flashy answers to problems, to be seen as a success and making progress, when the boring, simple or even ugly solution is actually the best option.

Going back to the Occam’s Razor principle, I like to think that Victor Kaim’s success represents a more modern approach to the razor; “the closest shave you can get, or your money back”.  So what is Victor’s razor?  Well, you can think of it as the nearest statement to truth that can be pared down to its absolute minimum, and what Professor Robert Winston calls ‘tat for tit’, that is, how we can better separate fiction from fact.  So often in our society, subjective conclusions, for example, what the Government might want us to believe, are presented as objective truth, especially when collectively it suits those in charge to accept it as such. Take DECC’s recent announcement as an example. They have stated that Green policies will put bills up £280 in the short term, but bring them down by £450 in 2020. To me this seems like a self-congratulatory statement, one which they cannot claim with any certainty and which goes against the reality that rising energy bills are linked primarily to our failing climate policy, rather than global gas prices, and others agree.

From a human perspective, empirical objectivity is always applied subjectively. As in Heisenberg’s principle of uncertainty, we can choose to know what we know only to a degree of certainty, and there is always a balance to be struck.  As I described earlier, humans often take the optimistic view, especially when it comes to wanting to ‘cross the bridge’ and appear a success. Subjectivity enables us to present the multi faceted dimensions required of objective problem solving into a single dimension so as to help us come to a conclusion, this is what Victor’s Razor really is, the ability to reduce uncertainty, the subjective application of objectivity.

Personally, when I hear the government tell us how well we’re meeting this target or the next I can only ask myself what do they really know?

When putting our current Climate Change policies to the measure of this Victor’s razor principle, it may surprise you to find the extent of the distortions applied through subjective meddling. Our current policy focuses our attention not on the matter of reducing the impact of Climate Change through reduced energy consumption but rather ‘carbon savings’ that are deemed through the sale of products.  Money lies at the heart of our purchase led economy and its influence is often used to present the subjective as an objective truth as in the case of short-term political will.

Given that there is a total lack of objectivity in Climate change policies, and the political establishment is locked in a spiral of subjective policies that are designed to fool, rather than fix, then I think it’s about time we got out Victor’s razor and gave the UK the close shave it needs.

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Reduce Energy Bills, Save Lives!

80% more people die in winter in the UK than in Germany. Why is this?

Following the recent shocking headlines of over 1000 preventable deaths occurring at Stafford hospital, I had a thought. Whilst of course any loss of life is tragic, the number of deaths involved in this scandal pale in comparison to the 24,000 excess winter deaths the UK faced last winter. Yet, this massive figure seems to be somewhat ignored by the media, MPs, and most importantly Government legislation, in favour of perhaps more “interesting” or, dare I say newsworthy stories.

You could argue that increased deaths in winter are unavoidable, and it is true that death rates do rise in winter for a majority of developed nations. However, the UK (with its average of 18% more deaths) is lagging substantially behind much of Europe, and this is even when compared to countries with similar or even colder climates than ours such as Germany and Finland (average of 10% more deaths).

Therefore, UK Citizens who are currently at risk from the cold weather are nearly twice as likely to die as our European neighbours.

Given that a minimum of 10% of winter deaths can be directly attributed to fuel poverty (DECC’s Hill Report, 2011), tackling fuel poverty is clearly vital in reducing needless winter deaths, improving the living situation for millions of vulnerable people in the UK (1.6 million children are now in fuel poverty), and helping the country to address the spiralling domestic energy market.

Improving the energy efficiency of UK homes strikes me as perhaps the best way for us to do this, particularly in the short term, when we need simple, low cost options to help stabilise the situation, which in light of soaring energy prices, looks like it will only get worse. Improved energy efficiency will ensure fewer people die as a result of being unable to heat his or her home, a fate that no UK citizen should face.

This is not to mention the wider economic benefits that improving energy efficiency will have for the UK. Housing benefit currently represents the highest portion of UK benefit spending, at around 16%. By improving the environmental and financial sustainability of our current housing stock, we can provide substantial savings for the UK welfare bill. Furthermore, supporting energy efficiency will improve the UK’s balance of trade and improve our debt situation, particularly important in light of our recent credit rating downgrade. If we reduce the amount of energy we use and therefore need to import, and also increase our exports (as we can export our energy efficient technologies and expertise around the world), the effect on the UK economy could be profound.

Our economy, social wellbeing and environment are all interconnected. By making even one small change, such as improving the energy efficiency of UK homes, we can have a positive knock on effect on the whole nation.

One such action that we can take as individuals is to pressure our local MPs, and let them know we care. Early Day Motion 841: Energy Efficiency and Reduction of Energy Costs bill, currently doing the rounds amongst MPs, represents a clear step forward for the government in addressing this issue, and needs further support.

Currently only 1 in 5 MPs has signed the motion, and you have to ask yourself why this figure is so low. To my mind there is simply no reason not to support the bill. Is it that MPs don’t know about it? Do they not think fuel poverty is an issue worth addressing? Or do they just simply not care? I would urge readers to contact your MP and let them know they should not be ignoring this issue. The more signatures the bill receives, the more likely it is to be debated at the House of Commons and hopefully enter the political agenda, to the benefit of the UK and it’s vulnerable citizens.

The full list of MPs who have signed the motion is available here. Please, write to your MP if they haven’t signed and let them know they need to take note, to support fuel poverty reduction and help their constituents, and the wider UK. After all, it’s now a matter of life and death.

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The benefits of self-build to the UK energy landscape

Back in 2011, David Cameron vowed to “get Britain building”. This has been supported with a variety of schemes, most recently the Green Deal and the Government backed online self-build portal. However, the UK now has the oldest housing stock in the developed world, with 8.5 million properties over 60 years old, and with the current energy pressure the UK is facing, there is more that can be done. Self-build, both in building new homes and refurbishment of our existing ones, has a key role to play in ensuring the UK housing stock is able to adapt to future changes in the global energy situation.

Currently there are around 100,000 new homes built in the UK every year. There are many factors that motivate people to build their own home; the cost is generally much less than buying an existing home, and you have better control over the location and design of your property. However, what I wish to focus on are the benefits self-build can provide for the UK energy sector and environment as a whole.

The key advantage of a new build from an energy perspective is that you are not constrained by a pre-existing physical structure, heating system, or even energy source. As such, there is the opportunity to utilise innovative technologies and ensure improved energy efficiency for your building, and a lower lifetime cost for your home heating. The benefits of this are clear to see. With energy costs rising every year, and 5 million UK homes now in fuel poverty, improving energy efficiency in any scenario represents a way for the UK to tackle its energy issues and achieve short and long-term stability.

In fact, newly built homes often lead the way in energy efficient design. According to the British Building and Social Housing Foundation, “low-energy self-build houses are among the best national examples of environmentally sound building, with high NHER (National Home Energy Rating) scores of 9 or 10 (out of 10”.

However whilst the benefits of building a new home are all well and good, it is clearly not an option for a majority of current homeowners. For the UK to make real progress towards future energy use and emissions targets, existing homes will need improvements. Fortunately, self-build is not limited to new homes. The refurb sector represents a considerable opportunity for the UK to improve the energy efficiency of our domestic buildings through a variety of self-build projects.

Incorporating simple, new or retrofitted energy efficiency measures into our existing homes, such as heating insulation, super condensing gas boilers with flue gas heat recovery, or new lighting controls are a means for the UK to tackle it’s energy problems and save money. Self-build projects and home renovations do not have to be complicated, long-term projects; the nature of self-build means you can tailor a project to your needs and situation, something as simply as upgrading your boiler will be of great benefit. Furthermore, the Government’s Green Deal, despite its much publicised problems and perhaps misguided approach, has the key issues of promoting energy efficiency at it’s heart, and I believe will eventually benefit UK consumers. The improvement of domestic energy efficiency also ensures you will be financially rewarded from any project you undertake, especially with rising energy costs projected for the future.

It is clear that the potential that self-build represents for the UK economy and energy landscape cannot be ignored. Both new and existing homes can benefit from a range of self-build improvements, and the Government clearly knows this, having acted to promote adoption of this approach, through the Green Deal, CERT and other funding. Whilst there are problems with their methods, the positive intent is there. It is up to us, the public, to take advantage of this, and ensure our homes can be as energy efficient as possible. This will benefit not only ourselves as homeowners, but also the UK and Government as a whole.

For those interested in finding out more about Self-Build or the issues surrounding an energy efficient renovation, and the use of innovative energy saving products, I would recommend you check out the National Self Build and Renovation Centre (http://www.nsbrc.co.uk/). They are a non-profit, community interest company and a great resource for anyone looking for advice and support on all aspects of self-build. They also have an upcoming free event The National Self Build and Renovation Show running from the 12th – 14th April 2013 (9:30am – 5pm).

Across the three days you will have the opportunity to attend seminars, listen to educational talks, visit example life size houses, take informative audio tours and meet a raft of experts – all on hand to answer any questions.

Advanced registration is recommended and the website will also provide more details on each day’s programme.

 

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Why supporting innovation is vital for UK energy policy in 2013

Britain is facing an ‘energy efficiency revolution’. That is the claim brought forward by UK politicians last November, and it is now time to act on it  – after all, the potential is there:

As stated alongside November’s strategy; ‘Success in the energy efficiency sector was highlighted by the Department of Energy and Climate Change (DECC) after it had sales worth £17.6bn in 2010/11 alone, with growth of 4% each year since 2007, and the Government anticipated a further rise in growth in the next few years.’

Much has been said about the importance of creating a ‘culture of innovation’, both in UK and US political thought. However, despite the projected growth figures, recent trends are a cause for concern. Figures released by the World Bank indicate UK is lagging behind in the Global innovation stakes, not to mention a new report released in January 2013 by Green Alliance director Matthew Spencer and low carbon expert Paul Arwas, which argues the UK is “currently failing to adequately nurture the development of potentially game-changing clean technologies”, something I am inclined to agree with.

But why is innovation so important for the energy efficiency sector, and why are we currently failing to get where we need to be?

From the DECC website:
‘The UK has ambitious targets to cut carbon emissions while sustaining security of supply and improving energy affordability. … Delivering this low carbon economy will require a radical transformation of the UK’s energy infrastructure, underpinned by a portfolio of low carbon technologies capable of being deployed cost effectively and at scale. This will require significant investment in innovation and rapid deployment.’

The key issue for the DECC, and Government as a whole, as I see it is not the financial investment required for research and development of new technologies – public and private sector funding is currently available to ensure new technologies can be researched, despite the World Bank Figures. The problem is that the current system needs to do everything possible to support new innovations to market, as soon as they demonstrate a significant benefit to the UK population. What good is there in researching a new energy efficient technology if it does not get to market and directly benefit UK consumers? Or, as is often the case, takes 10 years to get to market, the so-called “Valley of Death”. In the constantly evolving energy efficiency sector, a ten-year wait means many products will be obsolete on arrival.

We need to ensure a system that provides support for inventors and innovators, from development all the way through to deployment of their products. Develop a network or platform to independently verify the benefits of a technology and ensure these benefits cannot be ignored by those in charge. Change regulations to promote the rapid deployment to market of innovations that show a real benefit to the UK. A major stumbling block for many energy saving inventions is that they do not fit into existing legislative categories. What we need is a fundamental change of policy from the Government.

David Cameron has called for inventors and entrepreneurs to put Britain back on the map amongst the leading nations, Well, there are several inventors in the energy industry who have designed important technology that, if supported by the Government, could put the UK at the forefront of energy efficiency in the world and eliminate fuel poverty in one fell swoop.

As it stands, many beneficial energy efficiency innovations are being held back, seemingly in the interest of the ‘big 6’ energy supply companies, to maintain the status quo of less than optimal energy efficiency and maintain record profits. Why not mandate a certain amount of these profits be invested in new energy efficient technologies each year – even if a fraction of a % – which would lead to massive growth in new technologies and UK energy security.

As an inventor and entrepreneur myself I know firsthand the difficulties of ensuring a product gets to market and benefits consumers. It is in the governments best interest to make things easier for innovators, and ensure DECC can meet its targets.

The future of innovation is outside the box. We need the market to recognise and therefore benefit from new energy efficient technologies that can be achieved simply and affordably, but lie outside the status quo. But we can’t do this without Government help. Changes need to be made to ensure energy efficient products are supported in legislation, and can therefore benefit consumers and UK energy security. 2013 will be a year to watch, and if energy sector innovation is prioritised, the rewards will be substantial.

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Time for change

Households forced to fund £7.6b ‘green’ levy and no end to fuel poverty in sight

Over a week later and I am still stunned, bemused and concerned by the Government’s so-called energy policies. It was always my understanding that a Government is elected by the people to look after the good of the people in a socialist society, but recent announcements are forcing me to rethink my view. The ‘green’ levy, for example, is a case in point; how can the Government justify the introduction of additional taxes which will push households’ fuel bills up still higher?

The bill has been presented as an attempt to encourage investment in low-carbon power production. Funding will come from the levy which will rise from £3bn to £7.6bn a year by 2020 to support nuclear and renewable energy production. The big, energy-intensive companies may be exempt from any additional charge, however, because that might slow down progress. Instead, it’s the consumer who’ll bear the brunt, with energy companies licensed to increase household bills by about £100 a year on average by 2020. Sorry, but I fail to see the logic in this. Has the Government chosen to forget the very real problem that is fuel poverty, or its responsibilities and obligations to the whole of society?

In case anyone needs reminding, there are now reportedly one in four households in England and Wales in fuel poverty, who will be forced this winter to choose between heat and food. The Government has a statutory duty to eliminate fuel poverty by 2016, yet the number affected has risen this year to over 5m households in England alone, all spending 10% or more of their income on warmth and light. Earlier in the year, rather than putting pressure on the energy firms or promoting affordable energy efficient measures that would greatly reduce fuel bills, the DECC instead proposed adopting a new definition of fuel poverty that would conveniently halve the number of households defined as being in fuel poverty. Isn’t that called massaging the figures – and isn’t that the same approach they took to tackling unemployment? And now, as temperatures drop sharply and the long winter and its associated hefty fuel bills lie ahead of us, the Government chooses to announce its new system of taxes upon taxes that yet again will hit hardest the most vulnerable in our society.

What vexes me most is that there are simple ways to help families cope with winter fuel bills – and that approach is called energy efficiency. My company is just one British organisation that has been designing energy efficient heating solutions for years in the knowledge that energy efficiency is the cost-effective, affordable route to energy savings. It’s the practical, pragmatic approach that will bring important savings fast. Take the boiler as an example. Most homes still use a boiler to heat not just their homes but their water. If you were to add an energy saving device like the Zenex GasSaver to A-rated boilers, your now ‘super condensing’ boiler could also preheat the water for your washing machine or dishwasher. So, in real terms, for every kWh of energy saved through an energy efficiency measure like this, you reduce by around 5kWhs the need to generate the energy from a power station.

David Cameron talks of the need for entrepreneurs to take this country forward and assure us of a seat at the world table. Well, as far as energy efficiency is concerned, we already have world-leading, ground-breaking British technology that brings proven energy savings. What we don’t have is the Government’s support to make it mainstream.

What about the Green Deal, I hear you ask. Well, interestingly enough, there wasn’t a rush from householders to buy into this complicated scheme. Unsurprisingly, October’s shambolic attempt at a launch resulted in zero take up. Perhaps it was a deliberate fudge on the part of the Government, a deliberate ploy to go for a ‘soft launch’. After all, no one could describe the Green Deal as exactly well thought through. Worryingly, the Government seems no clearer as to how it should address the lack of interest its Green Deal has aroused, although it is keen to assure of the momentum it is building ahead of its full launch on 28 January and the taxpayers’ money it has put aside for publicity purposes.

As for the Government’s energy policies, Greg Barker spoke of the Energy Bill as “the most ambitious approach to demand reduction we’ve ever seen in the UK” but was there is a worrying absence of details as to how they will go about encouraging energy efficiency.

At the risk of repeating myself, the technology already exists to rescue the millions now in fuel poverty. It’s time for the Government to consult with the people who understand the industry. It’s time to support instead of block the entrepreneurs and innovators who, with Government support, can bring about real change. It’s time for Government to act in the interest of the whole of society.

After all, 2016 is not that far away.

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Getting our energy labels in order

Following the recent enlightening episode of the BBC’s ‘This Week’ featuring financial journalist Martin Lewis, I would like to understand other people’s thoughts on what I perceive to be misleading energy label statements relating to heating and hot water boiler efficiencies. Since 2005, UK consumers have been mandated to buy condensing ‘A-rated’ boilers. UK Building regulations currently ‘downgrade’ these to B, and in reality, they’re nearer to C – or 75% efficiency – not the 92% level that consumers are led to believe.

Over the past three years, this issue has led to over £1b being wasted on unnecessary gas bills as successive Governments have deliberately misled the public and all the while energy prices have continued to rise. It is this problem that needs to be considered and resolved especially as more of the UK population is set to enter fuel poverty.

Governments across Europe have created legislation that promotes carbon savings. However, this is not the same as energy savings.  Carbon savings are derived from the sale of energy labelled products, including ‘A-rated’ heating and hot water boilers. As such, many of these carbon savings are derived from idealised laboratory tests that unfortunately do not represent the efficiency levels achieved in real-world use.

For example, the majority of UK homeowners currently use gas boilers for their heating and hot water – specifically condensing boilers, as mandated by the Government. But ironically, condensing boilers are penalised in UK Building Regulations for condensing. This is because condensing is a byprocess of a boiler producing lukewarm water which is treated as waste – you can’t shower or heat your home in warm water.

Some five years ago, I invented a new category of patented energy saving technology called the ‘GasSaver’. Now recognised in UK Building Regulations as ‘Passive Flue Gas Heat Recovery’, this technology can save upward of £150 a year in gas and water savings by recovering the waste hot exhaust gases from modern boilers to pre heat the cold water before hot water generation.

If all the UK gas boilers that are installed (around 1.5 million this year) were fitted with GasSaver technology, then collectively we would save around £400m annually in our gas bills. That’s more than £1b in three years and enough to run a UK power station!

Yet, according to the head of energy efficiency at OFGEM, the problem with GasSaver technology is that it saves too much gas, embarrassing the regulations agreed between Government and industry. Consumer energy bills will only fall when the needs of British families are put above industry regulations which protect bad business and result in unnecessary waste of energy and unnecessarily high energy bills for householders.

A senior politician admitted to me at a meeting at Portcullis House, Westminster, that the Government’s promotion of renewable technologies was not for the claimed energy savings, but to invigorate the industry to invent energy saving products. Apparently it’s not enough that we at Zenex Technologies have already done this – “you’re the only one and we won’t promote that.”

My analogy would be, imagine the Government had told you that an old vacuum cleaner is 91% efficient and handed you a grant to buy one, who in that case would buy a Dyson? No one, I suspect…

The idealised testing of heating and hot water boilers means that their efficiency is overstated by around 20%. Now, this might mean that the industry is not put ‘under too much pressure’ (in the words of a senior DECC official), but it also blocks consumer awareness that they can make important water and gas savings  through improved home energy efficiency if they only knew about GasSaver technology.

The key to reducing consumer energy bills is to focus on seasonality and demand-led regulation, with outcome based policies at the heart of new legislation. Think back to the Longitude Act of 1714: the monetary incentive to invent a solution to accurate navigation at sea led to lives being saved and ships becoming a successful British economy. It’s time now for the Government to stop being constrained by European energy labelling policies that artificially protect business in favour of identifying innovators who can create the next step change in energy efficiency.

Today this is not possible. As an inventor of patented energy saving technology that undermines the current regulatory labelling schemes, it saddens me to think that consumers are being misled as to their choices and paying on average around £150 a year more than is necessary for their energy needs.

Where is the justice in that?

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Greg Barker, MPs and energy industry show support for Family Justice and ground-breaking British energy saving technology

On 25 October, at a reception hosted by Zenex Technologies in the Jubilee Room at the House of Commons, Greg Barker, Minister of State for Energy and Climate Change, John Hemming MP, fellow MPs and key figures in the energy industry showed their support both for John Hemming MP’s Family Justice (Transparency, Accountability and Cost of Living) Bill and for Passive Flue Gas Heat Recovery (PFGHR) technology as a means of achieving lower fuel bills without public subsidy, decarbonisation, and an end to fuel poverty.

The reception took place on the eve of the second reading of John Hemming’s Ballot Bill. The Family Justice Bill has three parts. Part 1 deals with transparency and accountability in connection with cases concerning children and proceedings in the Court of Protection; Part 2 contains other provisions relating to the administration of justice; and Part 3 deals with the cost of living and measures to achieve lower fuel bills.

Opening the event, John Hemming MP underlined the relevance of PFGHRD to his Bill.

Families are at the heart of Government and politics. This technology is an important part of Family Justice, concerned as it is with families and the cost of living.”

As part of Family Justice, John Hemming MP is seeking the mandatory inclusion of PFGHRDs in new heating systems for greater energy efficiency and savings on energy bills.

Dave Sowden, Chief Executive of the Micropower Council, the second speaker of the evening, described the versatility and energy saving benefits of PFGHRDs.

The Zenex GasSaver is a more cost-effective way of producing renewable energy and saving carbon than many things the Government is doing now to reduce energy and emissions,” commented Mr Sowden. “Tax payers and bill payers will save money. If the Government is serious about its ‘green’ policies, it should make PFGHRDs compulsory.”

Chris Farrell, MD of Zenex Technologies and inventor of the PFGHR device known as the Zenex GasSaver, spoke next of an urgent need to make current heating technology more efficient in order to remove the high percentage of UK households from fuel poverty and reduce the number of fuel poor. He called for strategies to be put in place for households regarding payment of winter fuel bills and for affordable heating without recourse to subsidies.

Referring to Tim Yeo MP’s paper on national security, Mr Farrell observed that energy efficiency could bring more output and capacity and, ultimately, sustainability to the nation. He claimed that PFGHRD, a British invention now recognised in Building Regulations and the Green Deal, could help bring wealth to the nation and re-establish its position as a leader amongst nations.

Recalling the Longitude Act of 1714 which offered a monetary award for anyone who could find a simple and practical method for the precise determination of a ship’s longitude, Mr Farrell threw down a gauntlet to the Government:

The same policy is needed here and now – there should be an award for the first person to halve the winter gas bill with an affordable technology!”

In 2005 it became mandatory to fit only high efficiency condensing boilers in England and Wales. Passive Flue Gas Heat Recovery Devices (PFGHRDs) are a proven, cost-effective way to maximise still further the efficiency of condensing boilers to bring greater energy savings and lower fuel bills. PFGHRDs work by capturing recovered waste heat from condensing boiler flues to pre-heat the cold water supply for domestic hot water production. Fitting a PFGHRD to a boiler can bring gas savings of up to 40% for hot water generation in addition to significant water savings. PFGHRDs are recognised in Building Regulations, recommended by the Energy Saving Trust and Waterwise, and recognised in the Green Deal.

Mr Farrell described the GasSaver as a technology that frightened industry and legislators and the EC as it does not fit into any existing categories.

The GasSaver can help reduce fuel poverty by affordably saving £1b currently wasted on consumer gas and water bills each year,” he said. “Those same gas savings could run the gas-fired power stations that are being built now.”

Drawing the evening to a close, John Hemming concluded:

Not only does PFGHRD deliver savings on energy bills, it is a great way to compete globally as well.”

The Family Justice Bill had gained substantial cross party support but was voted down at the second reading highlighting concerns that MPs of all parties are not aware of the plight of millions of families who are looking to the leadership of the Government in helping them meet their daily responsibilities.

Mr Farrell commented:

As the energy giants put up their prices one by one, it is blatantly clear that the Government needs to address the issue of fuel bills as a matter of urgency. We must urge our MPs to end this unnecessary waste of energy and bring about a much-needed reduction in gas bills. We need to bring focus to the needs of Family Justice.”

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Affordable heating for all

Right on cue, the arrival of the autumn equinox saw temperatures drop across the country, prompting many of us to test our boilers for the first time in months. Nothing out of the ordinary, you might think. But for some of the population, the cooler evenings may force a choice between food and warmth as they struggle to pay their heating bills. And given the escalating cost of fuel, this all too real issue of fuel poverty is predicted to deteriorate unless action is taken to make heating more affordable. A recent consultation document from the Department of Energy and Climate Change suggests some 8.1million households could be in fuel poverty by 2016 in the UK.*

In compliance with their core responsibilities to their constituents, MPs will be asked to address fuel povertyon Friday 26 October when the Family Justice (Transparency, Accountability and Cost of Living) Bill will receive its second hearing at the House of Commons. A key proposal of this Bill is ‘to require the promotion of measures to assist families and such other persons as may be specified to reduce the cost of living through lower fuel bills’.

John Hemming’s Family Justice Bill is a great effort to put the family at the front of the political agenda, helping families out of fuel poverty, putting consumer interests first. But isn’t that where it should be anyway?

Affordable heat should be the unassailable right of us all. Whether we rely on a conventional gas condensing boiler or renewable solar panels for our heating and hot water, there are solutions available today that, if made compulsory, would increase the efficiency of our heating and hot water generation and lower energy bills significantly.

Passive Flue Gas Heat Recovery (PFGHR) is one such practical, sensible and affordable technology. Fitted above a boiler, this British invention captures the heat that condensing boilers lose through the flue outlet and uses it to help generate hot water for domestic use. This helps households become more energy efficient and brings typical annual savings of 37% of the energy required to deliver hot water, according to independent test results.

PFGHR devices are equally relevant where renewable heating technologies are concerned. The nation is moving towards low carbon heating with Government targets and initiatives in place to support the uptake of renewable equipment. At present, most of these technologies are still dependent on condensing boilers for backup in times of peak demand. With boilers responsible for such a large proportion of the country’s heating, it seems logical to introduce a minimum standard of efficiency on all boilers in order that households gain the maximum benefits from their heating.

Passive Flue Gas Heat Recovery is already recognised in Building Regulations and the Green Deal for its energy saving benefits. So, why doesn’t the Government make fitting these devices on all boilers compulsory from now on as part of its energy efficiency strategy? Back in October 2010, Greg Barker MP agreed at our meeting that mandating the fitting of Passive Flue Gas Heat Recovery Devices on condensing boilers would cut fuel bills by £450m each year. Since then, energy prices have shot up 24%, are due to rise again, and still the Government has failed to promote common sense energy efficiency measures that would have reduced consumer gas bills by over £900m.

Doesn’t John Hemming’s Family Justice Bill suggest that the billions of pounds of tax payer money spent by the Government on carbon savings haven’t worked?

Family Justice should be at the heart of our society. John Hemming’s Bill needs all the support we can give it. If we are to tackle fuel poverty head on, we all need to do our bit to help DECC get back on track before it’s too late.

One simple action would be to ask our local MPs to write to the Energy Minister to recommend introducing a minimum efficiency standard under the Renewable Heating Incentive that would require PFGHR to be included wherever a boiler is installed.

Why not do it today? In the words of the well-known retailer, “Every little helps”.

 

* This statistic is based on the current measure of fuel poverty which defines a household as fuel poor if it needs to spend more than 10 per cent of its income on fuel to maintain an adequate level of warmth. The Department of Energy and Climate Change is currently looking to adopt proposals that would alter the definition of fuel poverty and reduce this figure by five million households.

 

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How energy labelling cost some residents the earth

Fuel poverty hit the headlines again this week with This is Money amongst others reporting that the Government is seeking to change the definition of the key measure of ‘fuel poverty’. The number of ‘fuel poor’ households could rise to 8.1million by 2016, according to the DECC consultation document. Using the new measure for fuel poverty, this figure would be cut to 2.9million households.

Is this yet another example of the Government’s seeming inability to tackle the problem of fuel poverty head on? Rather than another attempt to massage the figures, why not do something practical, like doing away with harmful initiatives that are causing consumer heating bills to soar rather than fall. Energy labelling standards is a case in point.

NIBE heating system being removed from a Runcorn housing estate

A recent exposé by the BBC’s Rip-Off Britain series revealed how vulnerable residents on two UK housing developments saw their energy bills escalate as a result of the energy standards approved heating system in place.

According to the BBC report, the residents had been advised that energy bills would be lower due to the NIBE exhaust air source heat pump system in place, a renewable technology that works by pumping waste air back into the heating and hot water system.

The programme showed how residents across the two estates soon received energy bills four times the predicted amount which they struggled to pay. During the investigation, the manufacturers insisted that the blame lay not on the product but on poor specification, installation and usage.

The air source heat pump was backed by an Energy Performance Certificate. And there’s the rub. The energy labelling of this product had misled the housing associations as to its real life energy saving benefits in a new build development. The air source heat pump was insufficiently large to heat the houses, which meant that it needed to rely on the immersion heater backup to provide the heat. So instead of providing adequate energy efficient, affordable heating by itself, the heat pump system depended on the support of expensive electricity, hence the astronomically high bills. Rather than taking vulnerable residents out of fuel poverty, the energy standards approved heat pump was placing people in deeper financial difficulties. For one resident the situation became so severe that she was reduced to making a stark decision between buying food or keeping warm.

The question the BBC and we should be asking is, why bother creating an energy efficiency standard if the product will not be capable of operating to a high efficiency level in real life, real world situations? If the standard promotes idealised rather than real world efficiencies, then it’s of no benefit to the consumer; it’s skewed to work in the interest of the manufacturer. The silver spoon it appears to offer might well turn out to be wooden after all.

Back on the housing estates, the solution reached by one of the housing associations was to rip out the air source heat pumps and replace them with gas condensing boilers. Fuel bills went down immediately. The condensing boiler is a tried and tested heating solution. Fitting a boiler with a passive flue gas heat recovery device like the Zenex GasSaver reduces bills still further.

Yet from 2016, Government legislation will make it illegal to fit a gas boiler into a new build property. And many London boroughs in control of local authority district housing schemes are already blocking gas boilers in favour of air source heat pumps. According to Rip-off Britain, an estimated 15,000 of these systems have been fitted across the country to date, as developers seek to make new build developments ‘greener’ in line with Government targets.

Someone should advise them to watch Rip-off Britain as a matter of urgency.

The UK Government knows that energy labels are misleading the public. It’s not just heat pumps, but all manner of ‘renewable’ or low carbon products that on one hand achieve the highest energy efficiency rating, but on the other are penalised in UK Building Regulations for being, well, less efficient. How is the consumer or, for that matter, the professional employed in the building industry supposed to deal with this? It seems that as long as the Government keeps on subsidising and promoting these misleading positions then both the consumer and the industry will be virtually powerless to change tack.

Tackling the Government over these issues isn’t easy as the standard response is to state the fact that energy labels are the responsibility of European legislation. From my experience, the European Commission is more interested in claiming carbon savings than energy savings, conveniently focusing on idealised test standards that operate outside of the frame of reference for standard efficiency products or that of consumer needs.  Take for example gas boilers that under newly proposed European test standards Lot1, ERP, (Energy Related Products) will be tested at between 30 and 36°C when the boiler is at low gas/fan rates, effectively showing the boiler at its highest possible efficiency but not one that a consumer can benefit from. The inevitable result from this sort of situation is that the science of fact eventually creeps in, in this case, SAP (Standard Assessment Procedure) where currently A rated gas boilers are de-rated to band B and in reality should be a C. Perhaps this is a step too far for the Government and regulators to defend…

At some point there will need to be a correction, just as in the case of the recent GCSE exams. However, as we have seen, changing the marking system mid stream can be extremely unpopular with voters and the industry alike.

Consumers face real world experiences such as the conflict between the misleading energy labelling and unnecessarily high energy bills. Isn’t it time that the government took a serious look at what the European Commission is trying to impose on the UK?  Unless we get this sorted we will never be able to revert the course of rising fuel poverty.

Rather than changing the goal posts on fuel poverty to make the statistics look better, the Government should make a stand and address energy labelling standards as a matter of urgency, changing them to benefit consumers. And we too must act now and respond to the DECC consultation by 30 November.

It’s time to stop this UK Rip-off energy business now.

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How low cost bolt ons could bring Green Deal success

Is the Green Deal in trouble? Many questions remain about how it could help those in fuel poverty, and recent amendments to the deal are not helping the situation. The new ECO funding scheme means that only 41% of green deal money will be allocated to the fuel poor, and a lack of marketing and public awareness for the deal is a real concern – the DECC has recently cut its communications budget by 95%. However on a simpler level, the problem with the green deal is that the costs involved are unrealistic and unattractive to homeowners.

First of all, a 7.5% interest rate is simply too high. Will customers actually want to take out loans against their property at this rate? Someone taking out a £10,000 loan for efficiency improvements would have to repay at a rate of around £1000 a year for the next 20 years! With figures such as these, it would be better for homeowners to simply extend their mortgages and obtain cheaper finance than the Green Deal can provide.

However, homeowners are not doing this either. What are the reasons for this? Is it apathy? Or are there other factors? I would argue that many homeowners, particularly those in fuel poverty, do not have the confidence to take on any kind of debt, even if it is paid for through energy bills. And also, do consumers have faith in the government to prevent the energy giants from simply increasing energy prices, counteracting any decline in energy use? Recent examples show that this might not be the case!

Furthermore, there is the practicality of home efficiency improvements to consider. For example, solid wall insulation might cost circa £8000 and require you to move out of your home while the work is being done. Does this sort of disruption sound appealing to a person living in fuel poverty?

To me it appears that consumers view the deal as an argument of cost over confidence. The Green Deal is an example of Darwinian selection. That is, if the scheme is good for homeowners, they will do it, and vice versa. The consumer does not yet know ‘what is in it for them’. One thing is for sure; the Green Deal is not the great “unfair tax” giveaway that was feed in tariffs, which provided a 15% ROI, not a 7.5% cost!

Consumers are much more likely to engage in low cost, less disruptive measures to improve their home energy efficiency; those that offer relatively high savings and shorter payback periods. Using such measures, for example GasSaver products, will provide simple bolt on savings at a much more reasonable rate for those in fuel poverty. Faster. Better. Cheaper. This is the message that will attract consumers to take up the Green Deal challenge.

 

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