What s in the EESSH? Jonathan Grant Scottish Government

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1 What s in the EESSH? Jonathan Grant Scottish Government

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

3 The new standard Based on minimum energy efficiency (EE) ratings to be achieved by 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.

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

5 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 2020 C (70) Fuel saving (on baseline) 863 pa

6 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.

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

8 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.

9 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.

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

11 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?

12 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.

13 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!

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

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