Yes
Energy Saving Trust supports the recommendation of setting a minimum energy efficiency standard (MEES) for the social rented sector (SRS) at an EPC band C by 2030. This will help reduce
fuel poverty rates in the SRS, ensuring tenants benefit from warmer, more affordable to heat homes.
As stated in the Warm Healthy Homes Strategy (‘WHHS’), “draughty, inefficient homes require more energy to heat, and low-income households represent the highest percentage of those living in fuel poverty.”
Therefore, those that live in homes with lower energy efficiency are more likely to live in fuel poverty and setting this EPC target can drive energy efficiency improvements and support the
most fuel poor.
Furthermore, there is a commitment within the WHHS for the “government to demonstrate leadership by improving the energy efficiency of the social housing sector.” There is also a commitment to introduce MEES for the Private Rented Sector (PRS), driven by the fact that these are more likely to be older and less energy efficient than the homes in the SRS.
This represents an opportunity for the SRS to lead by example, demonstrating what effective decarbonisation looks like and driving behavioural change to building confidence for the wider housing market throughout Northern Ireland, ahead of MEES being introduced in the PRS.
EPC reform
We acknowledge the department’s concern in relation to the continually changing EPC landscape and would recommend that EPC reform should also be prioritised in NI. Some limitations identified with the existing EPC rating include the fact they must be updated regularly to ensure accuracy and are based on assumptions about fuel costs, which can quickly become outdated due to energy price fluctuations, particularly given that two-thirds of Northern Ireland households continue to rely on highly volatile fossil fuel heating.
However, as the adoption of low-carbon technologies accelerates, aspects of the current EPC rating related to fuel costs will become increasingly obsolete.
Given the extent of EPC reform throughout GB, we would encourage UK wide collaboration on these issues.
Cost-Cap and Time Limited Spend Exemption
While we recognise that many social landlords are managing a range of competing housing priorities, action on climate change and fuel poverty must be treated as core priorities and therefore the government must ensure that social landlords are adequately resourced to meet the standards. This may include introducing cost-caps on expenditure and certain exemptions as in GB.
The consultation on ‘Improving the energy efficiency of socially rented homes in England’ (EE for SRS) proposed introducing a ‘spend exemption,’ which would cap the required spend on energy efficiency measures, with a preference for this to be set at £10,000. It is proposed that this would be time limited and last for a period of 10 years.
If introducing a cost-cap, it is important to strike a balance between MEES’ being affordable, fair and proportionate with the need to meet necessary energy efficiency standards.
A lower cost-cap can support affordability concerns for social landlords and may reduce property disposals. A higher cost-cap can help ensure certain tenants in the SRS do not get left behind, particularly those living in the least energy efficient homes but may result in increased property disposals due to the standards being considered disproportionately onerous or financially unattainable.
Given that low-carbon heating technologies and whole-house retrofit often exceed £10,000 (proposed under EE for SRS in England), it can be challenging to balance the need to maximise the improvements being installed without over stretching social landlords to the extent that it has negative implications for tenants. Low-interest loans have been provided as a solution to this in neighbouring jurisdictions.