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Happy Energy CEO ECO Update 18 July 2017

  • ECO2t – One Quarter in, How do you Feel?
  • Latest ECO Stats – Tortoise and the Hare
  • Up to 15.5p HHCRO Funding + Free Boiler Supply + Free ECO Surv Software
  • Deemed Scores – Our Survey said….

ECO2t – One Quarter in, How do you Feel?

Well, we are now one quarter into ECO2t, things should be starting to bed down and if you are delivering ECO, you should now know if things are working, or more likely, if they are not. If you are a heating installer putting in oil boilers or storage heaters you are probably fairly busy, if you are a loft and cavity insulation installer you are probably a little less chipper and if you are a room in roof installer you are probably not even reading this because you are likely to have given up and are currently stacking shelves in Tesco.

It is fair to say that things in Q1 were a little bumpy. Certain energy supplier ECO software providers had delays getting their software ready to receive works and the deemed score “simplification”, at least in relation to POPT, is what I would politely describe as, not simple. The deemed score survey has also turned into monster, what was supposed to be a quick sketch plan, now requiring qualified architects to complete.

But anyway, it is okay, we have another 5 quarters of delivery to get things right, don’t we? Erm? Better read the next article…

Latest ECO Stats – Tortoise and the Hare

Ofgem have released their latest statistics which show the suppliers delivery against their ECO targets. These stats are broken down to show delivery for CERO and HHCRO with a separate table showing the specific delivery for the Home Heating Minimum Requirement (HHMR), essentially the bit of HHCRO that excludes gas qualifying boilers. So how are things going for suppliers?

Do you all remember at school being told the story about the tortoise and the hare by your headmaster with the lazy eye? I do, although I was never sure if he was looking at me or the person next door? In this scenario, we have the HHCRO tortoise, a very difficult target to deliver, all those changes, no more gas boilers, we will never get to the finish line in time! And here comes Mr Cero Hare, CERO delivery is easy, we can all do that standing on our head, we could stop and have a snooze and still beat that HHCRO tortoise hands down.

But wait, check out the Ofgem race statistics. While Mr CERO Hare is plodding along at less than 2% of target a month, the HHCRO tortoise hit 7% for works submitted in May. If you extend this delivery run rate out into next year, poor old Mr Hare just about reaches the finish line in time, but wily old Mr HHCRO Tortoise will be across the line and have his feet up by February 2018, possibly even by Christmas.

So, what does this mean for the industry, surely not another roller coaster ride? I have decided to stop being Happy Energy and am renaming the company Hiatus Energy, seems more appropriate?

Up to 15.5p HHCRO Funding + Free Boiler Supply + Free ECO Surv Software

Happy Energy is pleased to announce a new HHCRO offer for installers which includes the supply of an LPG or oil boiler, with the cost being deducted from the ECO funding. This will allow installers to scale up their HHCRO activity without being limited by credit terms.

Through the new offer, installers will also have free use of the ECO Surv software for work delivered to Happy Energy, enabling all ECO paperwork to be collected electronically through iPads and iPhones. Using these apps will minimise paperwork errors and will ensure that claims are approved and processed promptly. The apps will generate all paperwork including the Priv, deemed score survey, Help to Heat checklist, boiler assessment checklist, pre installation survey, risk assessments, the DOCC, all Oftec paperwork (e.g. CD10/11 – T133 etc.) or Gas Safe paperwork and will capture all required photos. Installers working with Happy Energy will also get free access to the DWP checking service for jobs submitted to us.

CERO delivered alongside HHCRO will be offered at £20 per tonne subject to set ratios and we can also offer gas qualifying boiler funding at 6p/LTS

Contact us to find out more about this offer and how you can access the best HHCRO rates. In the first instance please email with your company name, contact number, email address, the measures you are planning to install and the estimated monthly volumes.

Deemed Scores – Our Survey said….

After requests from the industry to simplify ECO and reduce costs, deemed scores were brought in by BEIS to replace EPCs. The Financial Impact assessment for Help to Heat estimated that doing this could save up to £180 per measure installed. So, happy days then? The paperwork and compliance is much simpler and we can all deliver ECO much more cheaply?

A couple of weeks ago I published a questionnaire in association with the National Insulation Association, asking people to give feedback about deemed scores. The questions covered what people thought generally about the use of deemed scores and their views on how they had been implemented by Ofgem. 79 people responded including 5 employees from energy suppliers.

So, have things become simpler? Have deemed scores reduced delivery costs?

Q: We asked 100 people (well 73) – “Compared to an EPC coupled with a scoring tool, how do you find the deemed score survey and POPT calculation?” Our survey said….
A: 82% of people said that deemed scores were either more complicated or the same as an EPCs. So, on the simplification point I would now like you all to click the link below to hear the Family Fortunes wrong answer noise, which from now on will be referred to as “Burb Burb”

Q: We asked 73 people – “Overall, how much have your delivery costs changed per measure?” Our survey said…

A: Cost to generate a lead – 92% said costs were the same or higher
A: Cost to undertake the deemed score survey compared to an EPC – 74% said costs were the same or higher
A: Cost of compliance – 91% said the costs were the same or higher

So, on the cost saving front, not only have we not saved the £180 per measure, costs have increased, so that is another “Burb Burb”, feel free to press the button again.

85% of respondents had a negative or very negative view about Percent of Property Treated (POPT), but interestingly the energy suppliers had less negative views about deemed scores and POPT, presumably because the issues mostly affect people trying to generate the work and complete the paperwork?

So, what can be done now to try and get the simplification and cost savings back on track? A meeting was held last week between BEIS, Ofgem and members of the NIA, including myself. All parties were keen to work together to improve the situation and agreed to investigate what could be delivered quickly, while more fundamental changes were reviewed. The NIA standpoint was that POPT needed to be removed from the equation and the deemed score survey (DSSY) simplified. In particular, the requirement to draw a simple floor plan sketch on the DSSY has now become a requirement with some suppliers to have detailed plans drawn to scale with full room measurements and windows marked, this can take an excessively long time to produce and lead to compliance issues.

Any significant changes will require Ofgem to gather evidence and then consult which they have committed to do, but realistically it will be a few months before we are likely to see any dramatic changes. In the meantime, all parties will work together to try and identify any quick wins which can simplify the paperwork and process without the need for a formal consultation process.

See the full survey results here 

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