Chief executive’s view Mike Foster

The Green Deal has failed to engage the mass of installers and is not ambitious enough in showcasing modern boiler controls, which would have a big impact on efficiency, says Mike Foster.

The Green Deal has failed to engage the mass of installers and is not ambitious enough in showcasing modern boiler controls, which would have a big impact on efficiency, says Mike Foster.

Since my last column in April, there have been two issues that have risen up the energy industry’s agenda. The first is the topic of so-called green or renewable gas, and the announcement at our prestigious Gas Awards lunch in London in May.

Jointly hosted with Igem, the Gas Awards lunch is one of the biggest UK gatherings of the gas industry. The awards themselves highlighted much of what is good within the sector – and some very talented people were rightly recognised for their contribution to this successful UK industry.

With nearly 600 representatives gathered in London it was an ideal opportunity for our keynote speaker to lay out her plans should she become Secretary of State for Energy and Climate Change in less than 12 months’ time. I was really pleased that Caroline Flint agreed to speak to us, and follows a tradition of the Opposition speaking to the lunch the year before the general election.

The fact that she felt the event was the right one to announce future policy – about greening the gas network – is an honour for the Energy and Utilities Alliance, and our members should be proud of this. The fact that her speech contained good news for the industry, and made it clear gas has a long-term future, is even better news.

The potential for green gas – which could improve our energy security, help us cut our emissions and provide a solution to waste management – is considerable, yet so far overlooked. Ms Flint indicated her support for green gas injection into the grid as an efficient use of the resource, generating 90 per cent efficiency levels through a condensing gas boiler, but only 30 per cent when used to produce electricity. It’s always good to see politicians grasp how efficient domestic boilers have become.

Ms Flint also gave examples from across the developed world of waste to gas injection into the grid schemes. In 2009, National Grid estimated that with the right government policies in place, renewable gas could meet up to 50 per cent of UK residential gas demand. While there is a cost associated with National Grid’s study, some £30 billion, two-thirds of the cost, relates to waste infrastructure and would need to be met anyway. The “all electric” heat strategy, by contrast, would involve massive infrastructure costs and major upheaval within homes, hardly something that is appealing.

So when Ms Flint announced her plans for green gas, it was welcomed by the audience and will be of interest to the energy industry – if elected in 2015, an incoming Labour government will ask the Committee on Climate Change with National Grid to report by the end of that year, with advice and recommendations for the policy and regulatory reforms needed to maximise the potential for green gas development.

Caroline Flint also commented on the failings of the Green Deal to address energy efficiency. She accepted the industry argument about policy consistency, and agreed in principle about delivering a political consensus, but she could not sign up to what she described as “a consensus of mediocrity”. This comment was timely in that the Department of Energy and Climate Change (Decc) has just delivered its latest Green Deal scheme – the Home Energy Efficiency Improvement Fund (GDHIF). On the face of it, the GDHIF is intended to make the existing Green Deal policy more attractive – is it a game changer? The proof will be in the numbers, but frankly I’m sceptical.

I have consistently said part of the failure of Green Deal is because the vast bulk of installers are not engaged in the process, and that the requirements to be Green Deal approved are a costly barrier to the smaller installer.

And why would they be engaged when Decc suggests that non-Green Deal installers are “rogue traders”. This careless attempt to defend the cumbersome and arduous PAS 2030 is appalling and a slur on all installers. To repeat the suggestion that quality installations come only from Green Deal-approved installers is unforgiveable and wrong. If Decc believes that nearly 120,000 gas safe registered installers are rogues, or their work is of poor quality, the department needs to do something quickly. If it doesn’t think this is the case, then it needs to make it clear and quickly. Schemes such as Benchmark and manufacturer’s approved installers all safeguard the customer and provide the basis for quality installations.

Rogues exist in every walk of life – whether they are PAS 2030 accredited or not. Every installer or driver of a white van should not, by implication, be called a rogue trader or accused of poor quality work. This secretary of state should know that better than most – after all, he did get his job thanks to the resignation of his predecessor who ended up in prison – and I for one would never imply all politicians are the same.

What is also missing from the new Green Deal plan is an incentive to fit controls. The only way to maximise the efficient use of energy in the home is through modern day controls, allied to high-efficiency appliances. There is considerable interest within the heating industry (and hi-tech communications companies) in meeting this challenge. When Google and Apple indicate their interest in a solution, then it clearly is an issue that needs addressing. Had Decc announced support for the fitting of a new boiler with controls, such as an external weather compensators or modern thermostats, then it would have made more sense – saving on household bills while showcasing the value of modern controls. And what a photo opportunity it would make for any politician, alongside the hi-tech solutions that help drive down consumer bills.

Let’s hope they pick up on the hint.

Mike Foster, chief executive, the Energy and Utilities Alliance