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NestAnnual ReportApril 2011 – March 2012

2 Nest End of Year Report 3Nest End of Year Report

Contents2 Foreword from John Griffiths, Environment Minister

4 Nest, an Overview

8 Targeting And Marketing

10 Advice And Support

12 Benefit Entitlement Checks

13 Referrals from HEES

15 Home Energy Improvement Packages

17 Household Characteristics

19 Property Characteristics

21 Improving Energy Efficiency

23 Investing in Wales

25 Customer Satisfaction

27 Equality and Diversity

28 Looking Ahead

29 Glossary

Ministerial ForewordI am pleased to be able to introduce this first Annual Report of the Welsh Government’s Nest scheme.

In our Fuel Poverty Strategy, published in July 2010, we

committed to developing a new demand-led fuel poverty

scheme, subsequently named Nest, which in comparison

with the previous Home Energy Efficiency scheme (HEES)

more effectively targets fuel poor households and offers a

wider range of measures to help households living in off-

gas, hard to treat homes.

Nest was designed to provide “something for everyone”.

It offers a range of advice and support to all households

and provides a package of free home energy efficiency

improvements to low income households living in the most

energy inefficient homes, who are more likely to be at risk of

fuel poverty.

I am very pleased that in its first year of operation Nest

has helped over 14,700 householders with advice and

support to help them reduce their fuel bills. Over 3,600 of

these households received a package of home energy

improvements that will help to reduce their energy costs

and improve their well-being.

There has been a marked improvement in the targeting

of fuel poor households and future plans will see further

improvements.

The report acknowledges the importance of partnership

working in tackling fuel poverty and a key focus for Nest

in future years will be to further develop the referral

network. This work will include the establishment of a Nest

Stakeholder Group, which will help British Gas in identifying

and targeting households most in need of support.

I am particularly pleased that Nest has enabled almost 80%

of the properties that received a package of measures to

be improved from a SAP rating of F or G to a rating of SAP

D or higher. The benefits resulting from these improvements

are estimated to average around £550 per household

per year. This will make a significant difference to the

households supported in helping them to heat their home at

a more affordable cost.

I welcome the positive start for the Nest scheme outlined in

this report. I am confident that as the Nest scheme manager

contracted for this work, British Gas, will continue to help

make a real difference to householders struggling to heat

their homes and will help reduce the number of households

living in fuel poverty in Wales.

Nest End of Year Report4 Nest End of Year Report 5

Nest, an overviewNest is the Welsh Government’s fuel poverty scheme. Nest aims to help reduce the number of households living in fuel poverty in Wales and to make Welsh homes warmer and more fuel efficient places to live.

Nest started in April 2011 and replaced the former Home

Energy Efficiency Scheme (HEES). The scheme is managed

by British Gas, working with the Energy Saving Trust, on

behalf of the Welsh Government.

Nest was developed by the Welsh Government to better

target fuel poor households, increase the range of home

energy improvement measures that could be provided

through Welsh Government and other sources of funding

and offer more options to households living in rural, off-gas,

hard to treat homes, than was previously available under

HEES. The aim of Nest is that it provides all householders

with access to a range of advice and support to help

them reduce their fuel bills and target the highest levels of

support at those households on low incomes and living in

the most energy inefficient homes.

The range of advice and support services provided

through Nest includes advice on saving energy, switching

energy tariffs, Benefit Entitlement Checks (BECs), money

management and referral for a Warm Homes Discount

(WHD).

In addition to advice and support Nest offers a package of

free home energy improvement measures to households

who are in receipt of a means tested benefit and who live in

a very energy inefficient home with an Energy Performance

Certificate (EPC) rating of F or G. The installation of these

measures is managed by British Gas. Households who do

not meet the qualifying criteria may still be able to benefit

from free or subsidised energy efficiency measures through

referral to alternative schemes, such as energy supplier

schemes delivered under the Carbon Emissions Reduction

Target (CERT). Households who are considered vulnerable

can access a Nest partial grant voucher to help with the

costs of installing loft or cavity wall insulation.

Nest home energy improvement packages are designed

for individual properties so there is no standard package of

measures. Packages may include measures such as a new

boiler, central heating system, loft insulation, cavity wall

insulation, and some may include newer technologies like

air source heat pumps and external wall insulation.

This report sets out Nest’s achievements in providing

advice and support to fuel poor households in its first year

of operation and the priorities for the second year of the

scheme.

Setting up a scheme of the size and complexity of Nest is a considerable undertaking.

The focus in the first few months of Nest was on delivering

a smooth transition from HEES, a scheme that had been in

place for ten years.

Mobilising the new contract required the development of

new operational management systems, the transfer of

staff from the previous scheme manager to British Gas and

the Energy Saving Trust (EST), the development of new

processes for identifying and marketing the scheme to a

different target group of households, and the procurement

of installers and suppliers through OJEU procurement

procedures. In addition, British Gas were required to

manage the applications of households already in the HEES

system; those who had applied for heating and insulation

measures under HEES but whose installations had not been

completed before the HEES contract ended.

The volume of HEES installations was greater than had

been anticipated and this impacted on the planned

timescale for marketing Nest. The original plan had been

to market Nest from April 2011 but the volume of work

already in the system and the number of calls being

generated without new marketing activity meant that this

was postponed until June. The legacy work from HEES is

reported separately on pages 13 and 14.

Despite the delay in marketing the scheme, Nest naturally

experienced high levels of calls to the enquiry line. In

Autumn 2011 call levels peaked for the year, with some

callers experiencing difficulties getting through to a call

handler or delays in receiving a requested call back.

British Gas responded to these delays, putting in place

contingency measures to improve the responsiveness of

the service and reduce the number of calls going to answer

phone. The Welsh Government also provided funding for

additional Nest advisors to ensure that the volume of calls

to both the EST advice centre and the Nest scheme could

be managed effectively.

A major change from HEES to Nest was the new eligibility

criteria for a Nest home energy improvement package. The

new eligibility criteria were developed to enable Nest to

more accurately target support to fuel poor households. A

household is more likely to live in fuel poverty if they are on

a low income, live in a very energy inefficient home that is

privately owned or privately rented, and their home is off

the gas network or hard to treat. Under the Nest criteria,

the highest level of support is targeted at householders

who are in receipt of a means tested benefit and live in

a privately owned or privately rented property that has

an Energy Performance Certificate (EPC) rating of F or

G. The process through which Nest identifies and targets

households eligible for a home energy improvement

package is set out in more detail on page 8 and the fuel

poverty status is set out on page 18.

The new role of Nest Partnership Development Managers

(PDMs) was created to drive referrals into Nest, particularly

from householders in rural areas and hard to reach

communities who have not traditionally benefited from

government or energy supplier schemes, and to develop

a two-way referral network for advice and support. The

focus in the first year of Nest has been to start actively

building relationships with key organisations, including

Local Authorities, voluntary agencies and community

groups, who provide a local, trusted source of support

to some of the most vulnerable households in Wales,

and to develop a stakeholder portal to enable partner

organisations to refer householders directly into Nest, and

track their progress throughout the scheme. Our ongoing

aim for Nest is to further develop the existing network and

strengthen relationships so we can reach a point where the

majority of referrals to Nest are generated through partner

organisations.

6 Nest End of Year Report 7

Continuing this work is one of our key priorities for the

second year of the scheme. A breakdown of the referral

partner routes and the number of households receiving

help is set out on pages 8 and 9.

While developing an effective two-way referral network

is a key aim for the Nest scheme, the highest priority in

the first year was to ensure that systems were in place to

provide eligible households with heating and insulation,

and to provide a fast track heating installation service

for households who were considered to be exceptionally

vulnerable. British Gas and the Energy Saving Trust worked

hard to deliver this support for householders and it is an

achievement that despite the challenges in mobilising Nest,

the scheme installed over 3,600 home energy improvement

packages in its first year. A breakdown of the home energy

improvement packages installed is set out in more detail on

page 16.

The benefits realised from the installation of home

energy improvement packages under Nest is

substantial and highlights the real difference that the

Welsh Government’s investment in energy efficiency

improvements is making to the lives of some of the

poorest households in Wales. The key estimated

benefits delivered from the installation of home

energy improvement packages are:

• Average increase in energy efficiency rating of over

48 SAP points

• Average reduction in annual fuel bill costs of around

£550 (some or all of this may be taken as increased

comfort rather than fuel bill savings)

• Average reduction in annual CO2 emission of over

10,000 tomes

More detail can be found on page 21

Setting up a scheme of the size and complexity of Nest is a

considerable undertaking.

Nest End of Year Report

There have been a number of challenges in delivering

Nest home energy improvement packages in the

first year. In particular, the challenge of balancing

the potential for investing large sums of government

funding in one property that requires high cost home

energy improvement measures, such as external wall

insulation (EWI), against the benefit of improving a

number of homes with low cost measures for the same

cost. It became clear that the cost of installing EWI in

some homes would lead to expenditure significantly

above £12,000, which is the highest level of investment

considered in the Regulatory Impact Assessment for

changes to the Home Energy Efficiency Scheme (Wales)

Regulations 2011, the regulations which govern the Nest

scheme. In early 2012, British Gas, in discussion with

the Welsh Government, introduced a value for money

assessment for high cost measures, like EWI. The

assessment of value for money requires the installation

to deliver £1 of benefit for every 60p of investment before

the measure can be approved for inclusion in a home

energy improvement package. In addition, the total

package cost must not exceed £8,000 for an on-gas

property and £12,000 for an off-gas property.

The introduction of the value for money assessment means

that EWI installations for larger stone-wall properties

may not meet the value for money criteria and therefore

there may be a reduced number of EWI installations in the

second year of Nest. British Gas and the Welsh Government

will continue to monitor and review the value for money

assessment for high cost measures and how particularly

it impacts on the delivery of home energy improvement

packages in off grid, hard to treat areas. More detail on the

measures included in home energy improvement packages

and the investment made by the Welsh Government is on

page 23.

There were also challenges in the first year with

applications from the private rented sector and managing

significant applications from individual landlord portfolios

for home energy improvement packages. While the number

of private landlords submitting multiple applications was

very small, it led to concerns that such applications could

damage the credibility of the scheme. British Gas, with the

agreement of the Welsh Government, put in place a process

to assess multiple applications and, where necessary, refer

an application to the Welsh Government for determination.

This process will remain in place in the second year of

Nest and will continue to be reviewed by British Gas and

the Welsh Government. A breakdown of home energy

improvement packages by tenure is set out in more detail

on page 17.

It is particularly pleasing, given the challenges faced in

the first year of Nest, to see the high rate of customer

satisfaction and low levels of complaints recorded

for householders who have received home energy

improvement packages. A breakdown of the performance

in these areas is set out on page 25. While these figures

are encouraging, we are not complacent. We know there

is much more to be done to improve the experience for all

householders accessing Nest and to ensure that people are

helped and supported throughout the application process.

We are committed to continuous improvement and we look

forward to working with stakeholders to further improve Nest

and help more households in Wales out of fuel poverty.


Nest Targeting And MarketingThe Nest Scheme offers something for everyone – everyone can get advice to help reduce their heating bills.

The six target local authority areas initially identified were

Carmarthen, Gwynedd, Pembrokeshire, Powys, Conwy and

Ceredigion. Monmouthshire & Anglesey were added as

additional areas in October 2011. These are areas which did

not benefit significantly under the previous HEES scheme or

through the current energy company obligations CERT and

Community Energy Saving Programme (CESP) and which

include higher proportions of harder to treat properties.

Within the key local authority areas fuel poor households

were identified in partnership with local organisations

as well as thorough detailed data analysis of the HEED

database. The data analysis enabled the mapping of

property types, property tenure, and the likelihood of gas

connections to identify potentially inefficient households.

The marketing approach for Nest in the first year was

a multi-channel approach, recognising that fuel poor

customers can be some of the hardest people to reach.

Along with general awareness campaigns in the target

areas (press releases, press and radio advertising and

awareness events) there have been a series of direct

mail campaigns and most significantly the creation of the

Partnership Development Team.

The chart below shows the breakdown of households

enquiring about the Nest scheme by local authority area.

Five of the target initial Nest target areas are in the top eight

areas for scheme enquiries with Ceredigion ranked twelfth.

Monmouthshire and Anglesey were added as target areas

relatively late in the first year of the scheme.

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0

200

400

600

800

1000

1200

1400

16009%

8%8%

7%6%

6% 6%6%

5%4% 4% 4%

4% 4%4%

2% 2% 2% 2%2% 2%

2%

Enquiries by Local Authority

Carm

art

hens

hire

CC

RCT

Gw

yned

d

Ca

rdiff

CC

Pem

bro

kesh

ire C

C

Swa

nsea

Pow

ys C

C

Con

wy

CBC

Den

big

shire

CC

Ca

erp

hilly

CB

C

Nea

th P

ort T

alb

ot C

BC

Cere

dig

ion

Flin

tshi

re C

C

New

por

t CB

C

Brid

gen

d C

BC

Wre

xha

m C

BC

Torf

aen

CB

C

Vale

of G

lam

org

an

CBC

Isle

of A

ngle

sey

Bla

ena

u G

wen

t CB

C

Mon

mou

thsh

ire C

C

Mer

thyr

Tyd

fil C

BC

% of Enquiries

Number of Enquiries

The chart below shows the routing of enquiries into the Nest

scheme. There was a high proportion of households initially

who contacted HEES after it had closed and were directed to

Nest, this continued for a number of months. Word of mouth

is the single biggest route of enquiries (35%) to the Nest

scheme, however, this will have been reinforced by the initial

marketing during the year. Effective partnership working

leading to enquiries (24%) is essential to the ongoing success

of the Nest scheme. Partnership Development Managers

have been actively building relationships with stakeholders

across Wales to ensure we work closely with local authorities,

voluntary agencies and key community groups.

The chart directly below

shows the breakdown

of households in fuel

poverty (68%) who have

been referred to the Nest

scheme for a whole house

assessment. Fuel poverty

is measured using the

customer’s stated income at

the time of the application

alongside modelled running

costs for their household

– where the energy spend

is greater than 10% of

household income this

has been classed as fuel

poverty, energy spend

greater than 20% has been

classed as severe fuel

poverty.

In the first year of Nest, only

householders who were

referred for a home energy

improvement package

were asked for details of

income, which is required

to estimate levels of fuel

poverty. Details of income

are now requested earlier

in the process to enable us

to collect the fuel poverty

status of more households.

%35

%20

%45

%59

%25

%16

%12

%88

Fuel Poverty Status (%)

Not in fuel poverty

In fuel poverty

Severe fuel poverty

%24

%15

%13

%11

%2

%35

%29

%15

%13

%11

%21

%12

%3

%2

%2

%1

%1

%79

%30

%0

%0

%70

%19

%3

%78

Word of mouth

Partnership Development

Nest Targeted Direct Mail

HEES

Web

Advertising

60-69

70 and over

Undetermined

Under 24

24 -59

Gas

Oil

Electric

LPG

Solid Fuel

ASHP

Undetermined

%40

%16

%10

%5

%29 Benefit entitlement advice

Social tariff advice

Money management advice

Care and Repair services

Switch to Which

G

F

E

D

%12

%88 Ages 60 or over

Occupies the dwelling with a child or young person under the age of 25

Urban

Rural

Undetermined

Insulation

Heating

Other

Age 60 or Over

Occupies the dwelling witha child of young personunder the age of 25

Route ofenquiries into

the Nest Scheme

Top Subject of Households

contacting Nest

Eligibility breakdown

for customers claiming

Partial Grant Vouchers

Age profile Urban or rural profile

Installed Fuel Type

Households Recieving a Third Party

Referral/Recommendation

SAP Rating before

installation

SAP Rating before

installation


for customers claiming partial Grant Vouchers

%41

%27

%32 Not in Fuel Poverty

In Fuel Poverty

In Severe Fuel Poverty

% of Households referred

to Nest for assessment

%35

%20

%45

%59

%25

%16

%12

%88


Not in fuel poverty

In fuel poverty

Severe fuel poverty

%24

%15

%13

%11

%2

%35

%29

%15

%13

%11

%21

%12

%3

%2

%2

%1

%1

%79

%30

%0

%0

%70

%19

%3

%78

Word of mouth



HEES

Web

Advertising

60-69

70 and over

Undetermined

Under 24

24 -59

Gas

Oil

Electric

LPG

Solid Fuel

ASHP

Undetermined

%40

%16

%10

%5





Switch to Which

G

F

E

D

%12

%88 Ages 60 or over


Urban

Rural

Undetermined

Insulation

Heating

Other

Age 60 or Over



the Nest Scheme


contacting Nest





Installed Fuel Type



SAP Rating before

installation

SAP Rating before

installation



%41

%27


In Fuel Poverty





Households Receiving a Third Party Referral/Recommendation

Total Number of households 5193

Benefit entitlement advice 1988

Warm Homes Discount2780

Money management advice 1107

Care and Repair 680

Energy Tariff Switching Services 357

Nest Advice And SupportAll enquirers to the Nest programme are provided with relevant helpful advice tailored to their individual needs and circumstances along with referrals to third party services. Applicants who meet the initial eligibility criteria are referred to British Gas for a whole house assessment. Details of the home energy improvement packages installed are on pages 15 to 24.

The range of advice can include:

• Energy efficiency advice on actions to reduce energy

consumption – e.g. turning down thermostats, not

overfilling a kettle etc

• Home insulation requirements

• Heating controls and how best to use them

• Transport advice e.g. smarter driving, vehicle choices and

alternative transport options

• Information on renewable energy technologies

• Advice on understanding utility bill enquiries

• Appliance guidance

• Other grants and third party services

A Nest advisor will ask a series of questions to determine the

enquirer’s eligibility for the Nest home energy improvement

package. Irrespective of this outcome the advisor will

provide advice and support and identify other services

which may benefit the customer. Over five thousand

households were referred to or recommended to contact

one or more third party services including:

• Benefit Entitlement Checks – Riverside Advice and

Speakeasy Advice Centre provide a review service for Nest

customers and help them to maximise their income

• Debt advice - Riverside advice centre and Speakeasy

advice centre also provide the customer with independent

advice regarding reducing the debt value or easing the

repayment terms for the customer

• Warm Homes Discount from energy companies. British

Gas, E.ON Energy Solutions, Scottish Power, SSE (Swalec),

Npower, EDF provide eligible customers with a £120

payment against their energy bill each year

%35

%20

%45

%59

%25

%16

%12

%88


Not in fuel poverty

In fuel poverty

Severe fuel poverty

%24

%15

%13

%11

%2

%35

%29

%15

%13

%11

%21

%12

%3

%2

%2

%1

%1

%79

%30

%0

%0

%70

%19

%3

%78

Word of mouth



HEES

Web

Advertising

60-69

70 and over

Undetermined

Under 24

24 -59

Gas

Oil

Electric

LPG

Solid Fuel

ASHP

Undetermined

%40

%16

%10

%5





Switch to Which

G

F

E

D

%12

%88 Ages 60 or over


Urban

Rural

Undetermined

Insulation

Heating

Other

Age 60 or Over



the Nest Scheme


contacting Nest





Installed Fuel Type



SAP Rating before

installation

SAP Rating before

installation



%41

%27


In Fuel Poverty




A Nest advisor will also review with the customer their

suitability for referral for home energy improvements

through a CERT provider when they are not eligible for

a Nest assessment. During the first year of Nest 2,048

customers were referred to a variety of CERT schemes. Nest

advisors select the most appropriate CERT scheme for the

customer using their “handbook” – a list of the nationally

available CERT schemes in operation at the time. We

typically discuss three schemes with the customer based

on the details that are most desirable to the individual –

usually cost, location and survey timescale. This allows

the advisors to remain impartial, providing facts about

the schemes, and leaving the final referral decision to the

customer.

Where CERT funding was not applicable to a customer,

some customers were given the option of using the Partial

Grant voucher available from Nest, 251 customers chose

this option. The Partial Grant Voucher is only available to

households where the applicant is aged 60 or over; the

applicant is disabled or chronically ill; the applicant is

pregnant; or the applicant occupies the dwelling with a

child or young person under the age of 5. CERT offers are

generally more attractive than the Partial Grant voucher

however those customers that did claim a voucher

predominantly used them to improve the insulation of old

property extensions.

%58

%42 Number of Loft Insulation Installed

Number of Cavity Wall Insulation InstalledUptake of Partial

Grant Vouchers

• Money management advice – the Money Advice Service

provides the customer with independent advice about

debt management, handling their income and outgoings

more effectively and include online tools to help support

the customer

• Enabling services - Care and Repair provide eligible

customers with access to a free handyman service,

disabled service, temporary heating and help with grants

• Energy tariff advice - Switch to Which provide customers

with independent advice re the most effective tariff and

supplier for the customer’s circumstances


Benefit Entitlement Checks

Nest Customer BECs

Number of customer referrals 1166

Number of customers claiming new/additional benefits

105

Average increase to annual income

£2,058

Referrals from HEESIn the final months of the HEES scheme, January to March 2011, applicants who were eligible for a Nest home energy improvement package were given the option of being deferred to the Nest scheme or having measures installed under HEES.

The outcome for HEES applicants who deferred to Nest

is included in the figures reported for Nest home energy

improvement packages. A number of applicants who

selected to have work done under HEES did not have their

work completed before the contract ended. Measures

installed for these applicants were undertaken by Nest and

are reported on separately below.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

200,000

180,000

HEES Total Spend by Local Authority

Rho

ndd

a C

ynon

Ta

ff

Carm

art

hens

hire

Pow

ys

Swa

nsea

Cer

edig

ion

Bla

ena

u G

wen

t

Gw

yned

d

Card

iff

Caer

phi

lly

Den

big

hshi

re

Nea

th P

ort T

alb

ot

Pem

bro

kesh

ire

New

por

t

Flin

tshi

re

Con

wy

Ang

lese

y

Wre

xha

m

Vale

of G

lam

org

an

Brid

gen

d

Torf

aen

Mon

mou

thsh

ire

Mer

thyr

Tyd

fil

In November 2011 the Nest scheme established a referral

mechanism with Riverside Advice and the Speakeasy

Advice Centre in Cardiff, to cover the whole of Wales. This

new relationship enabled Nest to track the outcomes of

Benefit Entitlement Check customer referrals for the first

time. Over 100 customer have been identified as eligible for

additional income, averaging over two thousand pounds

each. Following completion of the Benefit Entitlement Check

Riverside Advice and the Speakeasy Advice Centre advise

the customer on the next steps to making a benefit claim.

Where customers are unable to take these next steps

unaided they will be advised of local face-to-face services

that can support. Riverside Advice and the Speakeasy

Advice Centre then report back to Nest on the outcome of

all customer referrals. Where the customer is then eligible

for a means tested benefit they are advised to come back

to Nest to see if they are now eligible for a whole house

assessment. We have seen a number of successes as a

result of this process.


Central heating installation

Standard Insulation

Enhanced Insulation

Solar

HEES - Installed Measure Profile

%15.2

%1.7

%0.5

%82.5

The chart below shows the HEES measures installed by the

Nest team by type. The majority of measures installed were

central heating and/or standard insulation (loft/cavity

wall), but there was also a small proportion of enhanced

insulation (external wall) and solar thermal heating

measures installed. The measures to be installed will have

been agreed under the HEES scheme and the Nest team

role was to install them as agreed with the customer.

Home Energy Improvement PackagesAccess to a package of free Welsh Government funded home energy improvements is via the Central Co-Ordination Point (CCP).

The CCP process is the initial gateway into the Nest scheme

for enquirers. The process includes a series of questions

about their individual circumstances and their property in

order to determine at a high level whether the customer

is likely to be living in fuel poverty, are in receipt of a

qualifying means tested benefit and are living in an energy

inefficient home. An effective screening process at this

stage is essential to ensure that customer expectations are

managed and that the in-house assessor resources are

used most effectively. Customers who are believed to be

suitable for the scheme are passed to the British Gas team

to arrange a whole house assessment. A fully qualified

assessor will visit the customer to confirm the customer’s

eligibility, complete the home energy efficiency report and

identify, where required, the most appropriate measures for

the property and the customer.

If the customer wishes to

proceed with the package

of measures then the team

will ensure that all required

permissions and consents

(landlords, planning etc)

and third party requirements

(gas connections,

asbestos removal etc)

are completed prior to

agreeing the installation

dates with the customer. A

network of local small and

medium enterprise (SME)

companies is then used

to provide all the heating

and installation services

under the supervision and

management of the Nest

team.

Nest - Local Authority Profile of Installations

0

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

Rho

ndd

a C

ynon

Ta

ff

Card

iff

Carm

art

hens

hire

Swa

nsea

Gw

yned

d

Pem

bro

kesh

ire

Conw

y

Caer

phi

lly

Nea

th P

ort T

alb

ot

Flin

tshi

re

New

por

t

Brid

gen

d

Den

big

hshi

re

Pow

ys

Cerd

igio

n

Wre

xha

m

Bla

ena

u G

wen

t

Ang

lese

y

Vale

of G

lam

org

an

Torf

aen

Mer

thyr

tyd

fil

Mon

mou

thsh

ire

Once the Nest team receive confirmation that the package

of measures have been installed, an inspection of the works

will be completed. In the event that the Nest inspector

identified any defects in the works, they will ensure that

any remedial works required are completed quickly and

effectively.

The graph below highlights that four (Carmarthen, Gwynedd,

Pembroke and Conwy) of the key initial Nest target areas are

in the top seven areas for Nest scheme installations.


The majority of works

undertaken by the Nest

scheme are central heating

and/or standard insulation

(loft/cavity wall). The chart

below shows the Nest

measures installed by type. Nest - Installed Measure Profile

(%)


Standard Insulation

Enhanced Insulation

Solar

%13.7

%3.4

%0.4

%82.5

Household Characteristics

The six key local authorities Nest initially marketed were

Carmarthen, Pembrokeshire, Ceredigion, Gwynedd, Conwy

and Powys. Monmouthshire and Anglesey were later

added as additional areas in October 2011. All of these

target areas are in the top ten areas for scheme enquiries,

which demonstrates the effectiveness of the marketing

undertaken to encourage referrals.

Nest - Installed Measure Profile

(%)


Standard Insulation

Enhanced Insulation

Solar

%13.7

%3.4

%0.4

%82.5

Owner

Privately Rented%15.2

%84.8Occupier Status

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

200,000

180,000

Total Spend by Local Authority

Rho

ndd

a C

ynon

Ta

ff

Ca

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re

Pow

ys

City

of S

wa

nsea

Cere

dig

ion

Bla

ena

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wen

t

Gw

yned

d

Card

iff

Caer

phi

lly

Den

big

hshi

re

Nea

th P

ort T

alb

ot

Pem

bro

kesh

ire

New

por

t

Flin

tshi

re

Conw

y

Ang

lese

y

Wre

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m

Vale

of G

lam

org

an

Brid

gen

d

Torf

aen

Mon

mou

thsh

ire

Mer

thyr

Tyd

fil

0

2%

4%

6%

8%

10%

12%

% of Households Referred

Bla

ena

u G

wen

t

Brid

gen

d

Caer

phi

lly

Card

iff

Carm

art

hens

hire

Cere

dig

ion

Conw

y

Den

big

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re

Flin

tshi

re

Gw

yned

d

Isle

of A

ngel

sey

Mer

thr

Tyd

fil

Mon

mou

thsh

ire

Nea

th P

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alb

ot

New

por

t

Pem

bro

kesh

ire

Pow

ys

RCT

Swa

nsea

Torf

aen

Vale

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lam

org

an

Wre

xha

m

£

The chart on the right shows

the breakdown of tenure

status for households

receiving measures under

the Nest scheme. The mix

of private owner occupiers

(85%) to private landlord

rental customers (15%)

is reflective of the split

across Wales excluding

social housing properties.

This would indicate that

the Nest scheme has been

successful in attracting

applications from both

sectors.

Local Authority

Central Heating Installation

Standard Insulation

Enhanced Insulation Solar Grand

Total

Anglesey 87 10 13 0 110

Blaenau Gwent 94 2 16 1 113

Bridgend 152 3 19 2 176

Caerphilly 181 4 33 1 219

Cardiff 279 1 42 0 322

Carmarthenshire 259 21 43 1 324

Ceredigion 114 13 19 0 146

Conwy 148 7 30 0 185

Denbighshire 166 6 28 0 200

Flintshire 210 20 61 2 293

Gwynedd 66 1 2 0 69

Merthyr Tydfil 51 3 16 1 71

Monmouthshire 172 3 32 1 208

Neath Port Talbot 163 3 29 0 195

Newport 178 4 43 0 225

Pembrokeshire 148 7 19 4 178

Powys 474 14 53 3 544

Rhondda Cynon Taff 240 5 33 1 279

Swansea 171 9 48 0 228

Torfaen 79 0 9 1 89

Vale of Glamorgan 83 2 9 0 94

Wrexham 93 2 8 0 103

Grand Total 3,608 140 605 18 4,371

Rhondda Cynon Taf Local Authority were also very

proactive in promoting the Nest programme, compared to

other local authorities, which is highlighted in the referral

variances per area, as shown on page 8.

The chart below shows the breakdown of households

referred to the Nest Scheme per local authority area:

Measures Installed by Type


Over half (55%) of the households who received a home

energy improvement package were fuel poor, or severe fuel

poor, calculated as the household’s energy spend being

greater than 10%, or 20% respectively, of the household net

income. We have used the customer’s stated income at the

time of their application, alongside modelled running costs

for that household. We recognise that there are numerous

methodologies to measure fuel poverty more accurately

however we believe that this approach provides a good

indicator. We also acknowledge that not all customers will

actually be spending more than 10% of their income on

energy as they seek to minimise their outgoings – enabling

these customers to access insulation and efficient heating

systems will enable them to maximise the value of their spend

and improve their general wellbeing.


the breakdown by age

of customers receiving a

home energy improvement

package. Over half (51%)

of all installs were for

customers aged sixty years

or older and almost a third

(30%) were for customers

aged over seventy years.

The proportion of young

households (under 24) was

minimal by comparison

whilst there were a small

proportion of customers

(4%) who declined to

provide their age.

Nest - Installed Measure Profile

(%)


Standard Insulation

Enhanced Insulation

Solar

Not in Fuel Poverty

Fuel Poverty

Severe Fuel Poverty

%13.7

%3.4

%0.4

%82.5

%45

%35

%20

Fuel Poverty

Not in Fuel Poverty

Fuel Poverty

Servere Fuel Poverty

Under 24

24-59

60-69

70 and Over

Undetermined

%45

%35

%20

Nest - Fuel Poverty (%) Age Profile

%40

%16

%10

%5

%20.8

%44.5

%20.8

%29.7

%3.8

%1.2

The chart below shows the breakdown by urban and

rural classification of customers receiving a home energy

improvement package. The majority of customers (79%)

receiving installations were in urban areas compared to

those living in rural areas (21%).

Under 24

24-59

60-69

70 and Over

Undertermined

Nest - Age Profile (%)

Urban / Rural %%29.7

%3.8

%1.2

%44.5

%20.8

Urban

Rural%21

%79

The chart below shows the breakdown of customers who

were on or off the gas grid prior to receiving measures

under the Nest scheme.

Home Energy Improvement Packages %

On Gas / Off Gas Profile

Urban

Rural%21

%79 On Gas

Off Gas%21

%79

Property Characteristics


Nest – Urban / Rural Areas (%)

Property Type Profile %

Urban

Rural%20.6

%79.4

%25

%15.4

%13

%11

%5

%0.2

%0.2

%29 Semi-detached

Mid-terrace

Detached

Bungalow

End-terrace

Flat

Mobile

Maisonette

The chart below shows the breakdown by property

type of households who have received a home energy

improvement package. Semi-detached properties (29%)

were the largest single property type treated under the

scheme although mid and end terrace properties combined

accounted for over a third (36%) of all installs. Flats and

maisonettes were the lowest installations across the

scheme however these types of property tend to be more

energy efficient than houses as they are often sheltered by

other dwellings above.

Improving energy efficiencyThe Nest scheme calculates the effects of energy efficiency improvement on the homes using an RdSAP rating.

Nest assessors utilise hand held technology in the home

which utilises a BRE approved version of the RdSAP

software using SAP 2005 specification. The software

measures the SAP rating of the home for heating and hot

water provision before and after suitable measures are

installed. The aim is to install a package of measures to

changing the energy rating of a property, increasing the

SAP rating to a C, where possible and cost effective to

do so. The actual measures installed are remodelled to

account for any amendments to the original package due

to customers changing their mind or any technical issues.

Benefits are based on modelled outcomes and the actual

reductions and savings will depend on the individual

customer’s behaviours. In some cases the benefit to the

customer will be through increased comfort and wellbeing

through the ability to heat the home more effectively rather

than a reduction in fuel bills.

The chart shows the breakdown by modelled energy usage

savings (avg 17k kWh per annum) per household receiving

measures under the Nest scheme by local authority. All

eight target rural areas feature in the top nine areas

receiving the highest energy use reduction which reflects

the impact of the improvements in off gas areas.

As expected, all eight target rural areas also feature in the

top areas receiving the highest fuel cost reduction. The

predicted cost saving on fuel is the annual expenditure

required to light and heat the dwellings to a standard

heating regime. The chart also shows the breakdown by

modelled fuel cost savings, which averaged at £550 per

annum per household.

Local Authority

Ave. Annual

Fuel costs

benefit

Ave. Annual Energy

use benefit

Sum of CO2

Lifetime Saving

Anglesey 20,649 £769.20 4,605

Blaenau Gwent 14,071 £370.45 3,214

Bridgend 15,602 £473.78 6,450

Caerphilly 14,024 £411.39 5,958

Cardiff 15,463 £448.56 10,467

Carmarthenshire 19,947 £652.83 14,584

Ceredigion 21,555 £748.93 7,382

Conwy 18,744 £679.52 8,655

Denbighshire 18,880 £600.26 6,929

Flintshire 15,411 £504.15 6,769

Gwynedd 20,936 £812.78 12,815

Merthyr Tydfil 15,513 £441.96 2,328

Monmouthshire 17,750 £582.33 2,809

Neath Port Talbot 17,549 £488.85 7,576

Newport 14,723 £435.19 5,927

Pembrokeshire 19,163 £639.21 9,400

Powys 21,577 £823.16 6,993

Rhondda Cynon Taff 14,548 £455.89 16,258

Swansea 16,500 £487.94 9,420

Torfaen 13,553 £381.29 2,639

Vale of Glamorgan 15,559 £480.35 2,923

Wrexham 15,191 £511.21 3,160


The chart on page 21 shows the breakdown by lifetime

carbon emission reductions for households receiving a

home energy improvement package. Total lifetime emissions

are modelled to reduce by over 157k tCO and vary from just

over 2k tCO (Merthyr Tydfil) to over 16k tCO (Rhondda Cynon

Taff).

The Nest assessor establishes the current SAP rating of

the property and the potential SAP rating if a home energy

improvement package is installed. Band A properties are

very energy efficient and will have the lowest running costs

whereas band G properties have poor energy efficiency

ratings and consequently will have higher running costs to

maintain the same standards of heating and lighting.

The chart below also shows the breakdown by SAP band for

households both before and after receiving home energy

improvement packages. All of the properties receiving

measures were initially either rated F (30%) or G (70%) and

were therefore very energy inefficient households. After the

install of the home energy improvement package, almost

80% of properties had been improved to SAP band D or

above. Some properties may remain energy inefficient

because it has not been possible to demonstrate value for

money for the more enhanced measures packages required

or in some cases the SAP rating has even been lowered

where solid fuel has been installed in place of oil / LPG at

the request of the householder because they have access

to a free or cheap fuel source.

%58


Number of Cavity Wall Insulation InstalledUptake of partial

Grant vouchers

Urban

Rural%20.6

%79.4

G

F%30.3

%69.7SAP Rating Before

Installation (%)

B

C

D

E

F

G

SAP Rating After

Installation (%)

%0.2

%37.8

%41.4

%13.8

%4.6

%2.1

Investing in WalesIn addition to the £1.5m spend on legacy HEES measures through the Nest team the Welsh Government has invested over £15.3m on Nest measures during the first year of the scheme.

The chart below shows the total Nest grant spend for

households receiving measures under the Nest scheme by

local authority. All six of the key initial Nest target areas are

in the top nine areas for total grant spend and account for

39% of the total £15.3m Nest grant spend.

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

200,000

180,000

Total Spend by Local Authority

Rho

ndd

a C

ynon

Ta

ff

Carm

art

hens

hire

Pow

ys

City

of S

wa

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Cere

dig

ion

Bla

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t

Gw

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d

Card

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Caer

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Den

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Pem

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New

por

t

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tshi

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Conw

y

Ang

lese

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Wre

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Vale

of G

lam

org

an

Brid

gen

d

Torf

aen

Mon

mou

thsh

ire

Mer

thyr

Tyd

fil

0

2%

4%

6%

8%

10%

12%

% of Households Referred

Bla

ena

u G

wen

t

Brid

gen

d

Caer

phi

lly

Ca

rdiff

Ca

rma

rthe

nshi

re

Cere

dig

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big

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re

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re

Gw

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d

Isle

of A

ngel

sey

Mer

thr

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fil

Mon

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ire

Nea

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ot

New

por

t

Pem

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Pow

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RCT

Swa

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Vale

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org

an

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xha

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£

In addition, 695 measures were installed via CERT funding

for householders that did not qualify for a whole house

assessment, this leveraged approximately £237,500 of

Energy Supplier funding.


Average Grant Spend by Local Authority

0

Cere

dig

ion

Ang

lese

y

Gw

yned

d

Pow

ys

Carm

art

hens

hire

Pem

bro

kesh

ire

Mon

mou

thsh

ire

Flin

tshi

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Conw

y

Den

big

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Bla

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org

an

New

por

t

Rho

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Ta

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Nea

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alb

ot

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Mer

thyr

Tyd

fil

Card

iff

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

The chart below shows the average Nest grant spend for

households receiving measures under the Nest scheme by

local authority. The eight key Nest target areas (including

Anglesey & Monmouthshire) are the top eight areas for

average Nest grant spend reflects higher cost of measures

for off-gas households


the proportion of Nest

grant spend by measure

under the Nest scheme.The

majority of the grant spend

was on heating (87%)

followed by external wall

insulation (12%). Although

standard insulation

accounted for 14% of all

Nest measures installed

the actual grant costs

was negligible as this was

primarily CERT funded.

%58


Number of Cavity Wall Insulation Installed

Heating

Standard insulation

EWI

Solar/Thermal

Fans and Plugs

Uptake of partial Grant vouchers

Grant Spend By Measure

Urban

Rural%20.6

%79.4

%87

%0

%12

%1

%1

Customer satisfactionComplaints are recorded and managed by the Nest team, and include complaints relating to the CCP service, the Nest team and/or the installation process.

There were a total of 74 complaints received by the Nest

team in the first contract year. The chart below shows

that the complaint volume represented less than 2% of all

customers receiving a home energy improvement package.

%58



Grant vouchers% Complaints per Installed

Household

No Complaints

Complaints

Urban

Rural%20.6

%79.4

%1.7

%98.3


Customer satisfaction is recorded and managed by the

Nest team. Each customer who receives a package of

measures under the Nest scheme is issued a postal survey

to complete and is asked to rate the service: dissatisfied;

satisfied; or very satisfied.

The chart below shows the average Nest customer

satisfaction rating for households receiving measures under

the Nest scheme. The vast majority of customers (92%)

were either satisfied or very satisfied with the Nest service

provided.

%58



Grant vouchers

Urban

Rural

Very Satisfied

Satisfied

Not Satisfied

%20.6

%79.4

%43

%2

%55Customer

Satisfaction Levels Of All

Nest Enquiries

Customer Satisfaction Levels Of All

Nest Enquiries

Equality and diversityMonitoring equality and diversity is important to the Nest team, and our survery to monitor this is separate from the customer satisfaction response.

Nest Enquirers

White 96.9%

Mixed 0.4%

Asian 0.7%

Black 0.9%

Other 0.3%

Prefer not to say 0.8%

We want to work with stakeholders to determine the most

appropriate and effective way of capturing data on

equality and diversity.

The chart below summarise the findings of the Equality

and Diversity monitoring information from Nest enquirers

between January and March 2012. The customer is under no

obligation to complete and return this form and therefore

the respondents are self-selecting.


Looking aheadIn the second year of Nest we will focus our activity on three priority areas:

1 Development of the partner referral networkIn the second year of Nest we want to focus on increasing

the number of applications generated through partner

organisations. To help achieve this we have increased the

number of field-based Partner Development Managers

(PDMs) from three to five. This increased resource will

provide greater opportunities for strengthening local

relationships and building new referral routes. At the time

of writing this report, a new referral route is in place with

the Mid & West Wales Fire & Rescue Service, a relationship

that will enable vulnerable households to access help with

heating their home through Nest whilst receiving advice on

fire hazards. We want to build on this successful relationship

and extend the support offered by the Fire & Rescue

Services to householders in North and South Wales.

We will continue to develop the online portal, which enables

partner organisations to refer clients directly into Nest and

to track the progress of applications. We will also ensure

that formal arrangements are in place to govern the use of

the portal and access to customer data.

2. Improving customer experienceIn addition to work on developing the portal and referral

network, we will establish a Stakeholder Development

Board that will provide advice and guidance on improving

the services delivered through Nest, developing new

referral routes, and enhancing the customer experience.

We will also work with partners to consider how we can

improve data collection, and how we balance the need for

data against the problem of negative customer experience

and issues in collecting large volumes of personal or

sensitive data. We are particularly keen to ensure in the

second year of the scheme that people who are more

likely to be socially excluded, people in ethnic minority

households, and houses with protected characteristics,

access support from Nest. We want to work with partner

organisations to understand how we can more effectively

identify and target support to these households.

3. Aligning Nest with the new Energy Company Obligation (ECO)

The introduction of the new Energy Company Obligation

(ECO) provides an opportunity for more households in Wales

to benefit from home energy improvements. The exact

detail on the operation of ECO is not yet finalised but the

Nest team and the Welsh Government are working closely

together to ensure that the Nest scheme works effectively

alongside ECO and maximises the funding available to help

fuel poor households in Wales.

Glossary

BEC - benefit entitlement check, this refers to a verbal

discussion between a customer and a welfare benefits

adviser to establish if the customer is entitled to any, or

further state benefits. In this instance this does not refer to

a self-service online tool.

BRE – is the trading name of the Building Research

Establishment Limited. BRE is an independent and impartial

research-based consultancy offering expertise in the built

environment.

CCP – Central Co-ordination point – this is the function

performed by the Energy Saving Trust as material

subcontractor to British Gas on the Nest Scheme. The CCP is

the initial gateway into the Nest scheme for enquirers who

are taken through a pre-assessment screening process.

CERT – Carbon Emission Reduction Target was introduced

by the UK Government in 2008 and requires all domestic

energy suppliers with a customer base in excess of 250,000

customers to make savings in the amount of C02 emitted by

householders. CERT was most commonly delivered through

the provision of subsidised or free cavity wall and loft

insulation offers

CESP - Community Energy Saving programme was

introduced by UK Government in 2009 and funded

through an obligation placed upon electricity generators

and energy suppliers. CESP focussed on low income

communities and promoted a partnership approach to the

delivery of a whole house approach when installing energy

efficiency measures in area-based projects.

ECO – Energy Companies Obligation, will take over from

CERT and CESP schemes when these obligations end in Dec

2012.

Nest End of Year Report30

EPC – Energy Performance Certificate, the resultant

certificate from a SAP or RdSAP assessment of a property

showing its energy efficiency rating.

EWI – External Wall Insulation

HEED - Home Energy Efficiency Database, an online web

portal managed by the Energy Saving Trust, used to run

pre-defined reports on UK housing stock data.

HEES – Home Energy Efficiency Scheme, funded by Welsh

Government this scheme was the predecessor to Nest.

OJEU – Official Journal of the European Union, in line with

EU legislation all public sector tenders above a defined

financial threshold must be published within this publication.

PDM – Partnership Development Managers are Nest’s local

presence focussed on working with partner organisations

that enable Nest to reach the most vulnerable customers.

RdSAP and SAP – The Standard Assessment Procedure

is the UK Government’s methodology for assessing and

comparing the energy and environmental performance of

dwellings. The reduced data SAP (RdSAP) was introduced

later as a more cost effective tool to assess existing

dwellings.

SME - companies – refers to small and medium enterprise

Solar PV – Solar Photovoltaic panels converts the sun’s

energy into electricity

WHD - Introduced in April 2011 the Warm Homes Discount

scheme aims to help low-income and vulnerable

households with energy costs. In 2011/12 for eligible

customers a discount of £120 was placed on their electricity

bill, in 2012/13 this will increase to £130.

nest annual report€¦ · in our fuel poverty strategy, published in july 2010, we committed to...

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