Saving energy with npower

Saving energy with npower
Progress Report 2005/6

“ ”
As the evidence mounts to show how much our
climate is changing…there is growing concensus
that action is needed and?needed urgently.
2

Contents
Introduction page 4
Energy savings from npower at a glance page 5
npower consumer products and services page 6
npower in the community page 10
Looking ahead page 12
Top tips and further information on how to save energy page 14
What is the Energy Efficiency Commitment? page 15
3

Introduction
“It seems that hardly a day goes by without the environment and specifically
climate change being mentioned either by politicians or on the news. This to me
shows just how serious the issue has become and how far it has moved up the
political agenda in recent years. As the evidence mounts to show how much our
climate is changing and could change further in the future, there is growing
consensus that action is needed and needed urgently.
As one of the UK’s leading energy suppliers and a responsible organisation,
npower has a part to play in helping tackle climate change and reducing the key
contributory factor, principally the growth in carbon emissions. We are engaged
in this in a number of ways: by supplying more renewable energy to the grid,
reducing the energy we use running our own business and operations and by
delivering energy savings to consumers.
It is the latter of these which is the focus of this report. This is our first progress
report under the second Energy Efficiency Commitment (2005 to 2008) and
sets out how we are doing against our targets to deliver energy savings to
households through a variety of initiatives across Great Britain. It is also full of
handy hints and tips to help any householder save energy, save money and do
something positive with regards the environment in which we all live.
More information on the Energy Efficiency Commitment, together with a
summary of npower's year one progress are available at the end of this
report. Whether you are a householder, npower customer or stakeholder,
I trust you will find this report an informative summary of what we are
doing and how we are making a real difference.”
David Threlfall
CEO - npower Retail
4

Energy savings from npower at a glance
Between April 2005 and March 2006, npower directly
contributed towards providing over 1.5 million energy saving
measures to householders throughout Great Britain. This
equates to saving over 1.2 million tonnes of carbon - that would
otherwise have been released into the atmosphere over the
lifetime of the measures installed.
That’s equivalent to the weight of over 240,000 elephants or
enough carbon dioxide to fill over 7 million double decker buses!
Insulation
53%
Lighting
1%
Appliances
6%
Heating & CHP
EEC1
3% Carry-over
37%
We did this in a number of ways through a range of initiatives in
the private and public sectors. The pie chart shows a summary
of our portfolio of energy saving measures.
In addition to the clear environmental benefits of what we’re
doing to reduce carbon emissions, a key part of our programme
is to deliver energy savings to those who need it most.
At least 50% of the energy savings we deliver are to people on
certain income related benefits and tax credits or consumers
termed as ‘Priority Group’ customers. It’s vital we help these
customers as their energy bills represent a significant chunk of
their household income. Where we can, we’re also offering
assistance to try to make homes warmer, aiming to stop the
winter months becoming a time of real hardship. Many of these
measures are delivered free of charge.
This report sets out what we’re doing and where we’re making a
difference. You’ll find details on the services we offer aimed
directly at the end consumer, as well as information on our
energy saving activity in the community.
How npower delivered 1.2 million tonnes of carbon savings in 2005/6
“ ”
npower has a part to play in helping tackle
climate change and reducing the key contributory
factor, principally the growth in carbon emissions.
5

npower consumer products
and services
Saving energy through
insulation measures
Imagine being able to throw a thick
overcoat around your house? Well you
can! The good news is that cavity wall and
loft insulation can be installed easily and
quickly and is relatively inexpensive.
Insulation remains a key part of any effort
to reduce energy usage. Nearly 60%
of heat in the home is lost through the
roof and walls where there is inadequate
insulation. If you’re serious about saving
energy, saving money and doing your bit
for the environment, the right place to
start is improving the insulation of
your home.
Professionally installed insulation
npower have been working with the
InstaFibre Consortium and its network
of home insulation contractors for
over four years, helping more customers
benefit from professionally installed cavity
wall and loft insulation.
In fact, during the report period (2005/06)
we have completed over 75,000 cavity
wall and loft installations. If the loft
insulation material we helped supply
during this period was rolled out end to
end it would easily stretch from Lands End
to John O'Groats!
DIY insulation
Loft insulation,
whether starting from
scratch or ‘toppingup’,
can be carried out
by any DIY enthusiast.
npower works with
Homebase to promote
the benefits of loft
insulation through their stores
and ‘ideas’ magazine.
Did you
know?
• By installing loft insulation to a
depth of at least 270mm (10"),
you could save up to 25% of your
heating costs.
• Uninsulated cavity walls cost
you money. Up to 33% of heat
produced in your home is lost
through the walls. The cost of
cavity wall insulation can be
recovered in under two years, and
the ongoing savings can be as
much as £130-£160 each year.
• If everyone installed cavity wall
insulation, we'd cut carbon
dioxide emissions by over 6.8
million tonnes - enough to fill
over 1.3 million hot air balloons.
• If everyone installed 270mm loft
insulation we'd save enough
money to pay the energy bills of
775,000 families for a year.
• If everyone put an insulation
jacket on their hot water tank,
we'd cut carbon dioxide emissions
by 670,000 tonnes - enough to fill
around 134,000 hot air balloons.
“ ”
Insulation measures supported by npower have
saved over 1 million lifetime tonnes of carbon.
That’s the weight of 7 million adult men!
6

Better heating
Boilers account for around 60% of all
domestic carbon dioxide emissions.
Using a high efficiency boiler with
heating controls could save you
between £190 and £240 a year, and
significantly cut your home's carbon
dioxide emissions.
to purchase and install these items,
which in turn helps households reduce
their running costs.
During the lifetime of their new boiler
each customer will be reducing their
carbon dioxide emissions by 2.7 tonnes.
This is equivalent to the carbon dioxide
released by heating enough hot water
to make 454,000 cups of tea. So far
over 25,000 A-rated boilers have been
sold through the scheme. That’s around
11 billion cups of tea! †
friendly heating and hot water for your
home and can generate up to 75% of
your household energy requirement from
the ground around you.
npower is working with ICE Energy to
promote the sale of ground source heat
pumps to householders. Customers can
receive grants of up to £1,500 to help
support the cost of installing a ground
source heat pump in their home.
Many customers rely upon their installers
for good advice when investing in a new
heating system. In a recent customer
survey we found that 76% of customers
select their boiler on the installer's
recommendation.
As part of our commitment to helping
customers save energy in their homes,
npower is working with numerous
companies from the heating industry to
promote energy saving heating
components, such as ‘A’ rated boilers and
heating controls. The initiative, known as
A1-Boilers, encourages heating installers
In 2004 A1-Boilers won the H&V News
Award for ‘Environmental Initiative of
the Year’.
Ground source heat pumps
In addition to the more traditional heating
products, npower is also promoting new
environmentally friendly technologies as
a means of encouraging customers to
save energy. Ground source heat pumps
use the solar energy stored in the earth
to provide clean and environmentally
Did you
know?
If everyone in the UK with gas central
heating installed a high efficiency boiler,
we’d save enough energy to heat
3.7 million homes for a year.
Heating products supported by npower have
saved over 18,000 lifetime tonnes of carbon.
That’s equivalent to the power used by
“over 1.3 million televisions per year!
”
7

Energy efficient appliances and lighting
Around 25% of the UK's total electricity is used to power lighting and
appliances in the home. If we do nothing, this domestic use is predicted to
rise by 20% by 2020 as an increasing number of energy using
technologies (such as games consoles and set-top boxes) become more
widely used 1 .
npower works with a number of high street retailers to promote a range of
energy efficient household appliances and lighting products. Anyone
buying a new appliance should look out for competitively priced energy
efficient models. npower supports a wide range of activity to encourage
customers to select a more energy efficient option. Consumers could
benefit from lower fuel bills during the lifetime of the appliance and a
growing number of energy efficient or A and A+ rated household
appliances means you won’t compromise on features and functions.
Case study
Argos and Homebase
npower works with Argos
and Homebase to encourage
customers to purchase more
energy efficient options
when investing in new
household appliances. This
includes a range of laundry,
refrigeration, dishwashers
and lighting products.
As part of our ongoing commitment to promote the
benefits of saving energy in the home, the npower orbs
have stepped in to help signpost customers to energy
efficient appliances.
Case study
npower and Comet
npower and Comet work together to promote the take-up of a range of
energy efficient household appliances. We aim to encourage customers to
purchase more energy efficient appliances through a range of promotional
activity, including in-store activity and press advertisements.
“ ”
1 The Energy Challenge, Energy Review Report 2006, Department of Trade and Industry
npower's retail partnerships have saved 125,000
lifetime tonnes of carbon. That’s enough carbon
dioxide to fill 49,000 hot air balloons!
8

How do I know the product I am
buying is energy efficient?
The EU energy label will help identify the
most energy efficient models on a range of
laundry and refrigeration appliances,
dishwashers and electric ovens. The EU
Energy Label rates products from A (the most
energy efficient) to G (the least energy
efficient). Refrigeration appliances now have
A+ and A++ rating to help identify the most
efficient products.
By law, the label must be included on all new
refrigeration and laundry appliances,
dishwashers, lighting and electric ovens.
Did you
know?
• Buying a single energy efficient
light bulb could save you up to
£9 a year on your energy bills
compared to a typical 100W bulb.
• The average household wastes
£37 each year by leaving
appliances on standby.
Every year TVs in the UK use
£116 million worth of electricity
just waiting to be switched on.
How much money could an energy efficient appliance
save me?
EU Energy Rating
Saving per year
Fridge Freezer A+ or A++ up to £45
Upright/Chest Freezer A+ or A++ up to £35
Refrigerator A+ or A++ up to £20
Washing Machine A up to £10
Dishwasher A up to £20
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npower in the community
npower's community based projects aim
to make homes warmer and more energy
efficient. We work through initiatives with
numerous local authorities and regional
stakeholders - either as part of social
housing improvement projects or
specially created activities focused on a
particular region. Together, npower and
our partners deliver a range of energy
saving improvements, including home
insulation and energy efficient heating.
Through our community activity, over
60,000 energy saving measures have
been installed in homes throughout Great
Britain, supported by npower.
npower’s regional activity focuses on
certain regions where help is most
needed. Our partnerships with Warm
Zones and Warm Wales, in conjunction
with a number of local authorities and
regional stakeholders, help to identify the
needs of each individual household within
a specific region - quite literally door to
door and street to street. Assistance is
then provided using local contractors to
make the appropriate improvements to
homes, be it through improved insulation,
heating or lighting. Those most in need,
including Priority Group and fuel poor 2
households, receive improvements at little
or no cost.
A key strength of our regional activity is
that as well as saving households money
by reducing fuel bills, it also helps to
identify where benefit entitlement is not
being claimed, therefore bolstering the
income of many vulnerable households.
In addition, advice is offered to
households to help them reduce their
energy usage through simple low or no
cost behavioural changes.
There are clear links between fuel poverty
and poor health, not only amongst elderly
households but also young families. Our
work in these regions is alleviating real
suffering particularly during the winter
Neath/
Port Talbot
Wrexham
npower’s regional activity
Northumberland
Hull
months when household expenditure is
stretched. Despite declining numbers of
fuel poor households in recent years, the
onset of rising fuel bills means that our
action will remain of critical importance
going forward.
“
A key part of our programme is to deliver
energy savings to those who need it most.
”2 Someone is deemed to be in fuel poverty if 10% or more of their income goes on home fuel bills.
10

Case study
Warm Wales
npower is working in partnership with National Grid and
other stakeholders, to improve the lives of thousands of
householders in Wales. The initiative, delivered through a
partnership with Warm Wales – Cymru Gynnes Cwmni
Buddiant Cymunedol, is working to reduce the number of
homes in fuel poverty 2 and improve the energy efficiency
of all properties in local authority areas. Warm Wales is
currently operating with two local authority partners -
Neath Port Talbot and Wrexham. The project adopts a
comprehensive and systematic approach, visiting and
assessing all households within a local authority area.
It aims to offer every household, regardless of income,
help to make their property more energy efficient and,
in addition, help identify whether new or additional
benefit payments are available.
During the period April 2005 to March 2006, over 25,000
measures were installed in homes across Neath Port
Talbot and Wrexham.
,
In 2006, the Warm Wales partnership was awarded a Big
Tick in the Power in Partnership category at the Business
In the Community (BITC) Awards for Excellence.
Case study
Darlington Borough Council
During the first year of EEC 2005 to 2008, npower, in
partnership with Darlington Borough Council, successfully
delivered a unique private sector insulation scheme aimed
at providing whole house energy saving solutions. The Darlington £109
scheme offered private sector residents cavity wall and loft insulation for a
combined price of £109.
Part funded by both the council and npower, the project delivered
whole house insulation for over 1,100 properties, installing over 1,900
measures and attracting a total investment in energy saving measures in
excess of £650,000.
"To significantly improve energy efficiency in over 1,100 properties throughout
the borough is fantastic. Residents are subsequently seeing a reduction in
their energy bills and increased comfort levels, whilst doing their bit for the
environment too. It makes sense to fully insulate a property during one visit
and we are delighted with the results this unique approach has delivered."
David Burrell, Darlington Borough Council
Case study
Rotherham District Heating
npower has provided funding towards a
number of district heating projects as part
of our community energy saving activity.
Working in partnership with Rotherham Metropolitan Borough Council
(MBC), a total of four coal fired district heating boiler plants were given
funding to make replacements with new energy efficient gas boilers.
The four district heating boiler plants serve a total of 275 Priority Group
households in Rotherham, who will all now benefit from total fuel savings
of almost £1 million and lifetime carbon savings of 6,200 tonnes. Other
benefits also include increased reliability, a cleaner environment resulting
from no coal deliveries, and significantly lower maintenance costs for
Rotherham MBC.
11

Looking ahead
The provision of innovative and cost effective energy savings
products has become a key part of npower’s business. Tackling
climate change, saving energy and protecting vulnerable groups
in society are long-term issues and npower is committed to
playing its part.
npower believes the Energy Efficiency Commitment should
be about tackling climate change in its broadest sense,
including helping to manage energy demand and not just
energy efficiency.
npower is looking to develop a number of new innovative
energy savings products over the coming years and is asking
the Government to allow greater innovation and flexibility to
bring these measures to market under the third Energy
Efficiency Commitment starting in 2008.
12

In the next five to ten years you could see these
energy saving products in your home!
Smart meters:
This term describes a new generation of metering that could
provide a range of additional capabilities to help customers
manage their energy usage more effectively. For instance,
energy consumption information could be sent directly to
your energy supplier, which means that manual meter readings
or estimated bills could be a thing of the past. The displays
may show energy usage in monetary terms rather than
kilowatt-hours, highlighting the relevance of consumption.
They could even enable you to monitor in detail the energy
used in your home and where it’s being wasted - for instance
standby consumption.
Domestic combined heat and power (CHP):
Domestic CHP is a highly efficient way of generating your own
heat and power simultaneously - a bit like having a mini power
station in your home. The heat generated in the production of
electricity is used to provide some of your heating needs (hot
water and central heating). Customers may even be able to sell
the excess electricity generated back to their energy supplier!
Mini wind turbines:
Your very own mini wind turbine could generate a proportion of
your household energy needs from an entirely clean and
renewable energy source.
Solar water heating:
These systems use heat from the sun to work alongside
your conventional boiler to heat your water. It’s estimated that
the most efficient systems can provide almost all of your hot
water requirements during summer months and up to 50%
during the winter.
Solar photovoltaic (PV):
Solar PV enables you to generate your own electricity using the
heat from the sun, thus helping to meet some of your household
energy requirements. PV panels come in a wide range of colours
and sizes so could provide an attractive alternative to
conventional roof tiles!
13

Top tips and further information
on how to save energy
What can I do today
to save energy?
1. Close your curtains at dusk to stop heat escaping.
2. Reduce your thermostat by one degree - it could cut
up to 10% off your energy bills.
3. Use your dishwasher or washing machine more
effectively - wait for a full load before you start
the cycle, or use an economy setting if your machine
has one.
4. Wherever possible, don't leave your appliances on
standby - households in the UK now spend around
10% of their electricity bill on standby power.
Further information
For more information on how you could save energy
go to www.npower.com
Other useful web sites include:
The British Wind Energy Association: www.bwea.com
Centre for Alternative Technology: www.cat.org.uk
Energy Saving Trust: www.est.org.uk
National Energy Action: www.nea.org.uk
The Solar Trade Association: www.greenenergy.org.uk
5. Only boil as much water as you need. If everyone
boiled only the water they needed to make a cup of
tea instead of filling the kettle every time, we could
save enough electricity in a year to run nearly half of
the street lighting in the country.
14

What is the
Energy Efficiency Commitment?
The Energy Efficiency Commitment
2005 -2008 (EEC2) forms part of the
Government’s Climate Change Programme
and Fuel Poverty Strategy. EEC2 requires
electricity and gas suppliers to achieve
targets for delivering energy savings in
domestic properties in Great Britain. The
overall target of 130TWh was set by Defra. 3
Each licensed energy supplier group with
at least 50,000 gas or electricity domestic
consumers is subject to an individual
target. Ofgem 4 are responsible for
apportioning the overall target in relation
to each supplier’s domestic consumer
numbers. At least half of the target must
be achieved within the Priority Group,
households receiving certain income
related benefits and tax credits, to ensure
that this group receive a significant share
of the benefits of EEC2.
npower's Year 1 Performance (March 2005 - April 2006)
% of energy saving target achieved
120
100
80
60
40
20
0
Apr-05
Oct-05
Total
42%
Year 1
Apr-06
EEC (2005 - 2008)
Year 1 Performance
Oct-06
Year 2 Year 3
Apr-07
Oct-07
Apr-08
3 Defra: Department for Environment, Food and Rural Affairs (www.defra.gov.uk)
4 Ofgem: The Office of Gas and Electricity Markets - the regulator for Britain's gas and electricity industries (www.ofgem.gov.uk)
Notes: All carbon savings calculated using the OFGEM EEC2 methodology.
All carbon saving equivalents taken from the Energy Saving Trust energy calculator. To view this calculator go to www.est.org.uk
All energy saving facts take on from the Energy Saving Trust 2006 unless otherwise stated.
† Comparison with a SEDBUK B-rated boiler, saving 940kWh/annum, over a 15 year life span of the boiler.
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npower is a registered trademark and the trading name of Npower Limited (registered in England and Wales No. 3653277) and associated companies.
Registered office: Windmill Hill Business Park, Whitehill Way, Swindon SN5 6PB
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