Scrutiny panel on energy efficiency interim report

Internal Affairs for Adactus500 Scrutiny Panel

Shehnaz Akhtar January 2015

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Scrutiny Review: Energy Efficiency

Interim Report

The Project

“We aim to carry out improvements to properties with a low SAP (energy efficiency)

rating to bring their rating up. Our target for average SAP ratings across all of our

properties by the end of the year is 79” (Adactus Housing Group Business Plan 2013/14).

We missed the target of 79 set by the Board in terms of SAP rating across our stock – at

quarter one (2013/14) it was 77.1, and the current average (2014/15) is 78.

What we wanted to know

• Why did we miss our target?

• Which types of properties were targeted for energy efficiency works?

• What measures were carried out to achieve the SAP 79 target?

• What more could have been done to achieve the SAP rating of 79?

What we looked at

• Setting of the SAP rating

• How properties were assessed for energy efficiency

• Accuracy of SAP records

• How properties with a low SAP rating were identified

• Improvement programmes to improve energy efficiency

• Number of improvements completed

• Availability of energy efficiency advice

• External funding

What we found

1. SAP

• The Standard Assessment Procedure (SAP) is a methodology used to assess and

compare the energy and environmental performance of dwellings. It works by

assessing how energy efficient a property is. SAP is derived from an energy

performance survey and detailed on an Energy Performance Certificate (EPC). In

addition as part of the Groups’ stock condition survey the software used provided

a SAP rating.



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a. SAP requirement

• It is not a mandatory requirement for Registered Social Landlords to produce an

EPC for its existing properties however new developments are required to have

one. The Group has energy performance surveys done to provide "value" for its

assets and to provide prospective tenants with an energy efficiency rating for that

property.

• Energy performance surveys are carried out by Pennington Choices on properties

that become void and not had a survey in the last 10 years. SAP ratings are

expressed on a scale of 1 to 100, the higher the number the lower the energy

running costs. SAP ratings are registered onto the Group’s property database

known as ECMK.

b. SAP Development

• SAP is continually evolving in respect of the areas that are assessed. The 2001 SAP

standards were updated in2005, 2009 and 2012. The 2005 rating has been the one

used to date for reporting purposes..

• SAP2009 looks in more detail at party walls, heating and cooling systems, multiple

heating and ventilation systems, hot water consumption, heat pumps, innovative

technologies, CO2 emission factors, lights, appliances and cooking methods. The

effect is an increase in the predicted energy consumption of dwellings that

typically reduces the SAP rating by 5-10 points. The Group’s average SAP rating is

calculated using a mix of SAP2005 and SAP2009 ratings.

c. National Average

• The average energy efficiency rating for a dwelling in England and Wales is band D

(rating 60).

• The Government proposals include improving as many fuel poor homes as

reasonably practicable to band E (39-54) by 2020 and band D (55-68) by 2025.

2. The strategy

• In 2012 the Group’s strategy was revised to increase the target for average SAP

rating of stock from 66 to 77 and then by one point each subsequent year. This

increase of 11 points was a result of specific energy efficiency investment

programmes and planned maintenance improvement programmes.

• The aim of the strategy was to review 400 properties with a below SAP65 rating

listed on ECMK. An action plan was produced to carry out where possible; loft

insulation, cavity wall insulation, double glazing, and replace boiler with a

condensing gas boiler in order to increase the rating to above 65. The intention

was not to carry out all these works in one fell swoop but to incorporate them into



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a planned maintenance programme (although it was not established what the

timetable was).

3. Stock Profile

a. The Database

• The ECMK property database contains details of all the Group’s properties. It

contains details of 13,216 properties. Records revealed some property types had

different descriptions for example a bungalow was also described as HBUN and

detached as HDET, therefore increasing the number of categories. It also showed

that 4,633 dwellings had not been categorised – the property type had not been

completed.

b. SAP Records

• The SAP data on ECMK was unclear as it contains ratings for SAP2001, SAP2005

and RDSAP2005. RDSAP2005 is the most recent one and contains details of 2,938

dwellings.

• The review of the data showed many SAP2001 ratings were cloned, for example if

one property in a row of houses had a SAP survey done then that SAP rating was

applied to all. Although ECMK showed many properties had a survey date

(indicating that a survey had been done) there was no figure (SAP rating) and an

energy performance certificate was not available on the EPC register.

• A check on SAP2005 data revealed there were gaps in information; of 13,216

properties a SAP rating was not available for 5,958 (45%).

• It was learnt that ECMK was to be updated on 10 February 2015 with SAP2009

software (although it is unclear whether all new survey will be carried out or

SAP2005 ratings will be converted).

a. New properties

• The development team updates information pertaining to new properties onto the

“New Properties database” (Access) such as; the number of bedrooms,

components, heating system, funding received, contractor, date of handover and

the property type. It also has a facility to record the SAP rating and the date of the

energy performance certificate. Between 1 January and 31 December 2014, 255

new properties became ready to let. A spot check of twenty new development

property records for which the SAP ratings ranged between 81 and 89 showed

these two fields had not been completed in ten cases (50%).

• It was learnt that the SAP rating and certificate date entered in the new properties

database is not fed directly into ECMK. The SAP ratings are manually input by staff

in Asset Management.



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• A check was made to determine whether the new properties SAP ratings had been

recorded onto ECMK. It revealed that of the twenty properties only two had been

logged (10%), the effect of this is the Group’s average stock rating is understated.

If these SAP ratings had been updated onto ECMK they would increase the average

stock rating.

b. Voids & Lettings

• The Voids & Lettings team maintain a separate spreadsheet for SAP surveys for

properties they let. They use it to check whether a property has a valid EPC

certificate before it is let..

c. Agency, Sheltered & Supported housing

• It was learnt that a SAP survey was not raised for agency managed, sheltered, or

supported dwellings.

d. Properties below the Government’s minimum target (Band D, 55-68)

• An analysis of properties with a SAP2005 ratings listed on ECMK (as previously

mentioned only 55% of properties are listed) revealed only 86 fell below the

Government’s proposed minimum band D.

SAP Rating Band No. of Properties

81-91 B 1,585

69-80 C 4,340

55-68 D 1,247

39-54 E 67

21-38 F 17

1-20 G 2

Total 7,258

(5,958 properties do not have a SAP rating on ECMK)

4. Improvement Programmes/Energy Action

a. Actions to improve energy efficiency

• There are many aspects that can make a difference to a property’s SAP rating.

Each improvement can increase the rating and reduce fuel poverty. Below is an

example of improvements that can make a difference to a property’s SAP rating:

Improvement Rating can be improved

by

Estimated Savings

Condensing Boiler *47 SAP points £225+ per year

Cavity Insulation *20 SAP points £134 per year



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Loft Insulation *10 SAP points £100-£125 per year

Double Glazing *4 SAP points £10-£15 per year

Low Energy Lighting *2 SAP points £33 per year

* Please note that these are only estimates.

• Although 15% of energy loss is estimated to be lost through external doors, it

currently does not form part of the key elements taken into account when

assessing the energy efficiency performance of a dwelling; therefore doors are not

linked to energy efficiency programmes. The elements assessed in the energy

efficiency survey are; walls, roof, floor, windows, heating, heating controls,

secondary heating systems, hot water and lighting.

b. Planned programme of works

• In 2012 a programme of works was created to carry out energy efficiency

improvements to 400 properties with a below SAP65 rating. They include loft

insulation (increasing from 1500mm to 300mm), cavity wall insulation, double

glazing, boiler replacement and full gas central heating. In some cases rendering of

properties was carried out for example to properties in Northgate Drive, Abbey

Hey.

• The programme of works could not be reviewed in order to assess the impact of

works undertaken to improve energy efficiency and reduce fuel poverty; this

information was not available.

• A review of SAP data on ECMK showed that SAP ratings of properties were not

revised following energy efficiency improvement works.

c. 2014/15 action plan

• A review of the Asset Management’s action plan dated September 2014 showed

145 properties with a below SAP65 rating. It specified the works required to

progress properties to a certain level and the potential energy efficiency rating in

addition to the expected efficiency rating after each type of improvement. The

plan includes low cost measures such as low energy light for fixed outlets, cylinder

insulation, hot water cylinder thermostat, and floor insulation. It was explained

that these actions had been incorporated into the 2015/16 planned programme of

works.

• Records revealed that external doors were not included in the improvement

programmes (as mentioned previously). Once a door requires replacing, for

example after a break in, it is replaced with a composite one. Research has

indicated that composite doors greatly reduce heat loss and noise from outside,

more so than UPVC doors.

d. Completed Improvements

• A review showed that between 1 January and 31 December 2014 the Group



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carried out the following improvements to properties that had a below SAP65

rating:

Improvement No. of properties

Roof insulation 81

Cavity wall insulation 66

Boiler installation 82

Double glazed windows 217

Full gas central heating 360

* Some properties had more than one improvement carried out

5. Funding/Resource allocation

a. Budget

• The Asset Management’s 2014-15 planned maintenance budget for energy

efficiency improvements is:

o Boiler replacements - £170,000

o Loft insulation upgrade - £12,000

o Windows - £600,000

Total £782,000

b. Funding

• Many of the energy saving measures have been funded through Central

Government funding sources, such as ECO (Energy Company Obligation), Dyson

Energy Services and Green Deal.

• Funding is volatile, it is not know how much will be available in years to come.

6. What are other housing associations doing?

a. SAP targets/energy efficiency improvements

• Research shows that many housing associations carry out similar energy efficiency

improvements as the Group such as; cavity wall insulation, loft insulation, double

glazing and energy efficient boilers. It shows that the target SAP vary between 65

and 88:

Housing

Associaton

Improvements Target SAP

rating

Sanctuary Cavity wall insulation, loft insulation, energy

efficient boiler, double glazing, solar

thermal/PV panels, and water saving device.

82

Passivhaus Triple glazing 88



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Southway Teamed up with FORREST and offered free

solar panels to 1,000 homes

Not available

Cheshire West Cavity wall insulation, loft insulation, and

energy efficient boilers.

65 by 2015

Stockport Homes Cavity wall insulation, loft insulation,

cladding, condensing boilers, free energy

efficient light bulbs and automatic meter

reading systems across communal sites.

80 at 2009/10

increasing by 1

each year

Riverside Cavity wall insulation, loft insulation, double

glazing, replacing electric heating with gas

central heating, energy advisor on a one-to-

one basis.

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b. Comparison of average SAP ratings

• SAP ratings cannot be compared between organisations as they all have a very

different stock profile which affects their SAP rating as can be evidenced from the

reported average SAP ratings in the table below:

Housing Association

No of Properties

(2013)

2012 reported

average SAP (2005) rating

2013 reported


2014 reported


Aksa 529 78.9 79.3 79.6

Contour/Symphony 1,117 71.25 70.3 70.37

Great Places 1,646 68.83 70.66 71.34

Guinness Northern

Counties

1030 68.9 69.6 72.47

Housing 21 1,467 87 87 87

Places for People 550 70 70 70

Regenda 1,306 67.15 64.6

(SAP 2009)

67.98

(SAP 2009)

Villages 927 70.51 71.43 71.27

FCHO 11,772 72.3 72.3 73.32

7. Energy advice



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a. Availability of advice

• The Group’s website provides general information and tips on how to save energy

by taking simple measures such as switching off lights, reducing the thermostat by

one degree, and has a comparison service ‘Billscutter’ which compares energy

prices from leading energy suppliers based on information supplied.

• The Energy Advice booklet contains advice about energy efficiency measures that

tenants can take to reduce fuel poverty. This information is also replicated on the

website. It was learnt from the Climate Control Manager that the Energy Advice

booklet will not be renewed as the information can be printed off directly from

the website.

• The Climate Change Manager can provide one-to-one energy efficiency advice.

She can visit tenants in their homes to make an assessment on how they use

energy in relation to energy efficiency and to provide them with advice on how to

be more energy efficient such as; considering meters, assessing bills, switch

energy supplier for a cheaper tariff, heating homes efficiently, using heating

controls effectively, and other low cost measures that tenants can take

themselves, for example using energy efficiency light bulbs, timer plugs for

chargers, and draught excluders on internal doors.

• The contact centre staff report details of energy efficiency referrals to the Climate

Control Manager, who will arrange for a home visit with the tenant. A spot check

revealed only two referrals had been made between 1 January and 31 December

2014. A further check was carried out to establish if other departments had made

energy efficiency referrals in the same period. Four staff (from Tenancy

Enforcement & Support, Resident Involvement and Neighbourhood Development

teams) confirmed they had not made any referrals. One member of staff was not

aware of the process for making referrals or the advice available for tenants.

What we liked:

• External funding had been secured and the Group has been investing in systematic

improvements of the energy efficiency of its housing stock.

• As well as capital works to improve the energy efficiency of properties, the Group

also provides advice and assistance to their tenants to get out of fuel debt and

switch fuel suppliers and tariffs.

• Most new developments produced an energy efficiency rating between 81 and 89,

in some cases reaching its potential (the maximum rating achievable for individual

properties).

• Energy efficiency advice is available on the Adactus website and is featured in the

tenant newsletter ‘In-house’.



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• Staff training and tenant advice programmes have been developed to provide

individual energy efficiency advice.

• During the scrutiny review ECMK had been updated with SAP2009 software.

What concerned us?

• Three processes are used for recording SAP information; ECMK is used by planned

maintenance, New Properties database (Access) for new developments, and a

spreadsheet by the Voids & Lettings team. The SAP ratings for new developments

and void properties and are not fed through to ECMK therefore these ratings are

not included in the average SAP rating calculation.

• There were gaps in SAP2005 information held on ECMK; ratings were not available

for 5,958 dwellings although in most cases a survey had been completed.

• Staff were unable to access the action plan for the 2012-15 energy efficiency

improvement planned programme of works.

What else could we look at?

• What type of properties currently have a low SAP rating

• Review of improvement programmes to determine if they were completed

• Review of hard to treat homes that cannot be improved with low cost measures

• Review properties below Government’s proposed minimum to check if the rating

is correct or valid.

• Review of information packs to new tenants – if heating instructions and boiler

manuals are provided

Glossary

• ECMK –the database for recording property information.

• EPC – energy performance certificate produced following an energy efficiency

survey.

• New property Database – used by the Development department to record new

properties.

• SAP – the standard performance procedure used to measure the overall energy

efficiency of a home.



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Appendix

Staff Interviews

The following interviews were carried out with staff:

Name Role Date

interviewed

Topics covered

Natalie

Twomey

Climate Control Manager 2/12/14 Energy advice

Staff training

Dave Carter Group Head of Sustainability 16/12/14 Fuel Poverty

ECO Funding

Carbon reduction

Energy efficiency advice

Renewable energy

Jamie

Weston

Former Assistant Director of

Asset Management

15/1/15 Planned Programmes of

works:

Cavity wall insulation

Lost insulation

Windows

New boilers

Stephen

Fryer

Planned Programmer 26/1/15 ECMK database

SAP calculation

SAP software updates

Dave

Sweeting

Planned Programme Manager 30/1/15 Improvement programmes

Component replacement

Budget

Funding

Louise

Edwards

Development Officer 10/2/15 New developments

New properties database

SAP ratings

Ryan Hague Project Officer 13/2/15 Voids & Lettings SAP

spreadsheet

Energy Performance Certificate spot check

What we wanted to check

We wanted to determine whether SAP surveys existed for properties that did not show



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SAP data on ECMK.

What we looked at

We obtained a report from ECMK (Master SAP spreadsheet) detailing SAP information for

all the Group’s properties. We filtered the spreadsheet to show 5,958 properties with no

SAP ratings. A sample of 15 properties was selected. A search was made on the EPC

Register via the internet using the property post code to determine if the energy

performance certificate existed for each property and what the SAP was. The results are

as follows:

Address Actual SAP rating SAP rating on ECMK

Ashdown, Southport 73 No rating shown

Admiral Way, Merseyside 87 No rating shown

Albany Court 76 No rating shown

Aniline Street 85 No rating shown

Barbeck Close, Miles Platting 77 No rating shown

Bednal Close, Miles Platting 67 No rating shown

Bignor St., Manchester 48 No rating shown

Brigstock Ave, Manchester 71 No rating shown

Burnleigh Court, 79 No rating shown

Caloder Ave, Lancashire 73 No rating shown

Canada St. Manchester 55 No rating shown

Chapel St., Chorley 58 No rating shown

Northgate Dr., Chorley 59 No rating shown

Orme Close, Manchester 68 No rating shown

Park Rd., Manchester 70 No rating shown

What this means

The database is not up to date. 45% of the Group’s stock does not show a SAP rating

although evidence suggest that energy efficiency surveys have been completed and the

properties have a high SAP rating.

New properties spot check


We wanted to assess whether the SAP rating of new properties was included in the

calculation for the average SAP rating of properties.



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What we looked at

We obtained a report detailing all new developments ready to let between 1 January and

31 December 2014. A random sample of 20 properties was selected for testing. The ECP

register was accessed to obtain to SAP rating for each property and a check was made on

the New Property database in order to establish if the SAP rating was recorded. A search

was then made on ECMK to determine if the SAP rating had been updated. The results

are as follows:

Address Actual SAP rating

per ECP Register

SAP shown on

New property

database?

SAP per ECMK

Greenside, Euxton 83 �� Not shown

Leeson Avenue 82 �� Not shown

Hurst Green 83 x Not shown

Fairclough Place 81 �� Not shown

Field Spring Gardens 82 �� Not shown

Acres Park Close 83 x 84

Croasdale Ave 82 x 82

Laurel Ave 83 �� Not shown

Almond Drive 84 �� Not shown

Lune Road 85 �� Not shown

Lune Road 84 �� Not shown

Jersey Street 81 X Not shown

Acorn Court 89 X Not shown

Water Meadows 83 �� Not shown

Grimshaw Street 83 X Not shown

Sprindlewood Road 83 �� Not shown

Whinfell Close 87 X Not shown

Chorley Lane 83 X Not shown

Dallington Avenue 88 X Not shown

New Mill Street 85 �� Not shown

What this means

The New Properties database has a facility to allow a SAP rating to be recorded. However,

there is no facility to upload this into ECMK; therefore a majority of SAP ratings for new

properties is not included in calculating the average SAP rating of properties.

Voids & Lettings spot check


We wanted to determine if the SAP ratings obtained for void properties were updated



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onto ECMK and included in the calculation for the average SAP rating of stock.

What we looked at

We obtained a report detailing all the SAP ratings obtained for properties by the Voids &

Lettings team since 2012. A sample of 10 properties was selected for testing. The EPC

register was accessed to obtain to SAP rating for each property and a check was made on

ECMK to determine if the SAP rating had been updated. The results are as follows:

Address Actual SAP rating SAP rating per ECMK

Ayres Road, Manchester 75 78

Calder Avenue 69 75

Bollington Road, Miles Platting 77 77

Liverpool Road, Neston 66 62

Ullswater Road, Chorley 70 No rating shown

Queensway, Chorley 61 No rating shown

Mellors Close, Southport 78 No rating shown

Eaves Lane, Chorley 71 No rating shown

Chester Place, Chorley 68 No rating shown

Heathfield Drive, Bootle 78 No rating shown

What this means

This is the third processes for recording SAP rating. As with new developments, there is

no facility to upload the SAP ratings of void properties directly into ECMK, therefore a

majority of these ratings are not included in calculating the average SAP rating of

properties.

Scrutiny panel on energy efficiency interim report

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