Saving money. Saving energy. Saving the environment. - Npower

Priority GroupIn the average home over 50% of the heat could be lost through the external walls and roof. Through our Social Housing Insulationscheme (NPOW02I05C) we are providing funding to a large number of local authorities and housing associations trying to reduceheat loss. The installation of cavity wall and loft insulation can make a significant contribution towards this objective. We are alsofinancially supporting external and internal solid wall insulation measures as well as hot water cylinder insulation and draughtproofingto achieve warmer homes and lower fuel bills in the domestic sector. Our funding accelerates the installation of energysaving measures that housing providers are able to complete, thus many more customers are able to realise the benefits of thesemeasures in this Energy Efficiency Commitment (EEC) period than would otherwise be the case.Insulation“We chose to work with npower in improving the energy efficiencyof our housing stock. The money they contributed has helped usto achieve the Decent Homes Standard earlier in a number of ourproperties and move towards our obligations and aspirations forthe quality of homes in our care. We simply needed to report onthe completed works, by entering the basic details of thehouseholds in which measures were installed, and payment was”received quickly and with the minimum of fuss.Paul MaplethorpeSenior Home Energy Advisor - Housing Strategy Energy Team,Rotherham Metropolitan Borough Council“We have found working with npower straightforward, efficientand beneficial. npower has helped us to improve the energyefficiency of our electrically heated housing stock, which in turnmeans these properties now reach the Decent Homes Standard.We look forward to working with npower on future projects to”further improve the standard of our homes.Steve WoodDirector, Sanctuary Housing Association7 npower Energy Efficiency Commitment Annual Report 2003 - 2004

Warm Zones and Health Through WarmthIn a normal year, there are in excess of 40,000 winter deaths. The sad fact is that many of these deaths could be avoided if peoplecould afford to heat and insulate their homes properly. Launched in April 2001, Warm Zones is a pilot programme promoted bycentral government, bringing help to those who need it most. The programme involves local organisations developing andimplementing a strategic and targeted approach to the delivery of all available energy efficiency related benefits. All homes within aWarm Zones area are assessed for potential energy efficiency measures. Focusing on vulnerable households, this programme aims toprove that fuel poverty can be substantially reduced within three years.Non-Priority GroupProfessionally Installed InsulationThe installation of insulation measures to improve the warmth of a home is one of themost cost-effective ways of saving energy and enhancing comfort levels. ThroughSavings for Life, npower has developed a number of schemes to realise these benefitsfor our customers.npower sponsors three out of the fivepilot areas - Northumberland, Sandwell(in the West Midlands) and Kingston uponHull. Within these areas, we provideadditional resources to those PriorityGroup customers who do not qualify forthe government’s Warm Frontprogramme, enabling them to benefitfrom energy efficiency measures, theassociated reduction in fuel bills and anincrease in home comfort levels. We haveprovided funding towards a significantnumber of measures allowing many morehomes to be made more energy efficientand comfortable for their occupiers.Through our Health Through Warmth(HTW) programme we bring assistance tothose suffering ill health while living incold and damp homes. In this £10 millionproject we work with the National HealthService (NHS) and National EnergyAction (NEA) to help people improve theenergy efficiency of their homes. Thescheme currently operates in 17 areasincluding Birmingham, Newcastle uponTyne, Kent and the Vale of Glamorgan.To date over 6,800 key workers suchas nurses, health visitors and socialworkers have been trained to refertheir vulnerable clients to HTW. Up to£6.3 million of funds has now beenaccessed to help install heating andinsulation measures in their clientshomes.Once trained, key workers fill in astraightforward one-page referral formfor each case. The team then assess themeasures needed to improve conditionsin that home and identify any grantassistance available to fund them.If the person or family in question is noteligible for any existing grant assistance,npower has established a crisis fund tohelp subsidise the necessary measures.npower is contributing to both schemesas part of the Savings for Lifeprogramme, through the Warm Zone andHealth Through Warmth Integrationscheme (NPOW02I06C).Warm Front is another centralgovernment programme, facilitatingenergy efficiency improvementsspecifically towards households with thegreatest health risks - older people,families with children under 16 years oldand people who are disabled or have along-term illness. All beneficiaries of thisprogramme fall within the Priority Groupand are therefore a priority for us too.Through Savings for Life, npower hassupported and fully interacted with WarmFront by purchasing measures under ourWarm Front transfer scheme(NPOW03I26C). The funding from npowerhas enabled additional measures to becarried out through the Warm Frontroute.Our Home Energy Survey ESCo scheme (NPOW02M02N) was designed to work inconjunction with local authority support. The project demonstrated the importance ofpartnership and provided useful information in the development of the subsequentHome Insulation scheme (NPOW02I01C) and Energy Services (NPOW02M14E) scheme.These projects provide customers with a professional insulation service through ouralliance with the InstaFibre Consortium. We offer cavity wall and loft insulationtogether with complementary products such as draught-proofing and hot watercylinder jackets**. Our Energy Services scheme has national coverage and provides allcustomers with the added benefits of home energy surveys and the offer of a financialpackage to help pay for the installation. All of our customers receive a first-classprofessional service and significant discounts on energy efficient products.** Subject to availability and terms and conditions, see page 22.DIY Loft InsulationThrough our DIY Insulation Package scheme (NPOW02I09C) we offered our customersloft insulation products at discounted prices (subject to terms and conditions).The scheme was created through our partnership with the Build Center network andKnauf Insulation. All customers benefited from free national home delivery togetherwith a complimentary installation kit comprising goggles, gloves, dust mask and aninstallation manual. We have now fulfilled the energy savings allocated to this scheme.8 npower Energy Efficiency Commitment Annual Report 2003 - 20049 npower Energy Efficiency Commitment Annual Report 2003 - 2004

Given the extensive range of electrical household appliances, it is important that our customers realisethe savings that can be achieved with energy efficient products. Refrigeration appliances are amongthe largest consumers of energy in the home. UK households use £1.2 billion worth of electricity everyyear on refrigeration alone + .Priority GroupOld or damaged refrigeration models consume more energy in order to maintainsuitable operating temperatures. It is often the most disadvantaged customers who arerunning inefficient appliances and cannot afford to do anything about it.Our Fridgesavers scheme (NPOW02A04C) offers Priority Group householders theopportunity to trade in their old inefficient appliance for a brand new A-ratedrefrigerator or fridge-freezer at a significantly discounted rate. As the new appliancewill be more energy efficient, it will also reduce running costs, helping customers toreduce their bills.Non-Priority GroupTo help customers reduce energy consumption in their homes, the Savings for Lifeprogramme has formed partnerships with electrical appliance retailers and manufacturers.This has enabled npower to offer discounts to customers purchasing A-rated energyefficient appliances.Through these schemes, (NPOW02A11C, NPOW02A15C, NPOW02A16C, NPOW03A19C)financial incentives are offered on a range of energy efficient refrigeration and laundryappliances, helping our customers save on their running costs.The Fridgesavers scheme was launched in March 2003 and has received anexceptionally high level of interest. Promoted primarily through our local authoritypartners, we have distributed energy efficient appliances to more than 11,000customers over the past year. We currently have a waiting list of local authoritypartners, but if you would like more information please emailsavingsforlife@npower.com.Appliances+ Energy Saving Trust, www.saveenergy.co.uk/appliances/refrigeration.cfm11 npower Energy Efficiency Commitment Annual Report 2003 - 2004

Low energy Compact Fluorescent Lamps (CFLs) can help users conserve energy and save money - theyalso last longer than conventional lamps. We manage schemes to enable customers in both the Priorityand Non-Priority Groups to realise these benefits.Priority GroupNon-Priority GroupLightingThrough the npower Lighting scheme (NPOW02L03C)we are able to offer CFLs free of charge to PriorityGroup households. Four CFLs are made available to eachhousehold (three x 20 Watt and one x 15 Watt). By takingadvantage of this offer, customers could save up to£273˜ on their electricity bills over the lifetime of thelamps. Over the last financial year (April 2003 – March2004) we have distributed around one million lamps toPriority Group households. This represents a realfinancial gain for those who need it most.We are keen to promote this scheme further, tomaximise these benefits. If your organisation isinterested in distributing low energy CFLs to PriorityGroup households, we will be pleased to hear from you.You must be able to agree and confirm that you will:• Provide free distribution of four CFLs of the requiredmix to Priority Group households• Take delivery of your full allocation or batch ofCFLs and provide safe and secure storage prior todistribution• Confirm in writing that adequate administrationprocedures are in place for distribution• Complete distribution of the CFLs by December 2004• Confirm in writing that all CFLs have been distributedto customers in the Priority Group• Distribute customer questionnaires with the CFLs ifrequired by npowerFor further information, please e-mailsavingsforlife@npower.com.Since April 2003 we have distributed hundreds ofthousands of CFLs to Non-Priority Group customers.This has been achieved by offering lamps at adiscounted price, to be purchased through our mailorder scheme (NPOW02L03C) or retail schemes(NPOW02L10C, NPOW02L12C, NPOW0213C). We havenow fulfilled our mail-order target for Non-PriorityGroup households and have closed this offer. The retailschemes are continuing, distributing CFLs at adiscounted rate to customers.We will confirm your acceptance onto the scheme(subject to availability) and your allocation of CFLs.˜Savings based on 12,000 hours usage (the recommended bulb lifetime) comparedto conventional bulbs with electricity costs of 7.61p per unit, as at 1st April 2004.Savings may vary according to the unit rate and usage.13 npower Energy Efficiency Commitment Annual Report 2003 - 2004

Providing heating and hot water accounts for as much as 80%^ of the energy used in a typical home.Condensing boilers are more efficient than conventional boilers, confirmed by their "A" rating forenergy efficiency. The householder could save up to £140 (or 40% of fuel costs per bill) compared withthe costs of operating a standard boiler > .All of npower’s schemes support the highest standards and actively participate in the Benchmark initiative. This helps to ensure that equipment is commissioned in accordance with the manufacturer’sinstructions, and customers benefit through the use of a continuous Benchmark service record.Priority GroupHeatingnpower has implemented a heatingscheme (NPOW02H07C) to encouragethe installation of high efficiencycondensing boilers in social housing.Condensing boilers provide significantenergy savings for our customers byconsuming less fuel when generatingheat and hot water. This means reducedenergy consumption and moreaffordable warmth.npower is keen to promote theinstallation of energy efficient heatingsystems in line with the government’sCentral Heating System Specifications(CHeSS), and works together with socialhousing organisations, including localauthorities and housing associations, toensure our customers benefit fromquantifiable energy savings now and inthe future.Other heating schemes (NPOW03H22C,NPOW03H23C and NPOW03H24C)integrate with housing providers topromote and encourage the installationof high efficiency district heating orCombined Heat and Power(CHP) systems.Many homes are heated by a lowefficiency system, often due to thelimited technology available at the timeof construction. The most efficientsystems now available are normallyfuelled by gas. Through our SocialHousing Fuel Switching scheme(NPOW03H21C) we are working withhousing providers to facilitate the changein fuel supply to their properties, wheregas is not currently available.The heating component of our Savingsfor Life programme is continuallydeveloping. As new energy efficientheating technologies become available,npower will seek to support thepromotion and installation of a broaderrange of products in this sector.^ Domestic energy factfile, BRE 2000> Cost saving assumption. Figures are from the Energy SavingTrust (www.saveenergy.co.uk/boilers/benefits.cfm).Savings based on a gas heated detached house with a totalfloor area of 104sqm. The savings are typical for this type ofproperty. There will be variations in individual cases due toclimate, exposure, occupancy patterns, heating controls,insulation and other factors.15 npower Energy Efficiency Commitment Annual Report 2003 - 2004

Non-Priority GroupEnergy efficiency adviceHeating improvements are madeavailable to all householders through ourpartnerships with manufacturers andinstallers, collectively known as ourEnergy Efficiency Heating scheme(NPOW02H08). The overall aim is toincrease the number of condensingboilers in homes throughout GreatBritain. This is achieved by putting inplace financial incentives aimed atlandlords, householders or installers -depending on the relevant set-up ofhome ownership and method ofpurchasing the condensing boiler.Through affiliation with manufacturers,plumbing merchants and tradeassociations, npower has established anumber of customer proposals aimed atincreasing the use of condensing boilersin Non-Priority Group customer homes.Worcester Bosch SchemeThis scheme enables customers to claim£100 cashback when they purchase oneof the Worcester Bosch Greenstar HEboilers from a registered WorcesterBosch installer. In order to claim this,customers must first ring the helpline on0845 330 1325 to find their localWorcester Bosch specialist and obtainan authorisation code. They then receivefurther information enabling them tocomplete the purchase and receive theircashback**.A1-Boilers Schemenpower’s A1-Boilers project encompassesour unique partnerships and financialarrangements with heating installers**.We use this scheme as a vehicle topromote and develop best practice andbroader competency levels amongstheating installers.In May 2004, the npower A1-Boilersprogramme won the H&V news award forEnvironmental Initiative of the Year.Described by the judges as "goodlooking",the A1-Boilers incentive schemeis designed to encourage installers tospecify energy efficient equipment.The judges were impressed by thestraightforward approach to transformingthe domestic heating market and withthe tangible results achieved.They were also struck by the extensiverelationships built through the entiresupply chain with manufacturers throughto suppliers and installers.To the end of March 2004, the schemehas resulted in more than 4,400companies signing up to participate inthe scheme, saving more than 8,000tonnes in carbon emissions.For more information, please callSustain on 0845 6000 337 or e-maila1@sustain-energy.co.uk or visit ourwebsite at www.npower.com/a1-boilers.npower offers free and impartial adviceto enable our customers to save energyin their homes, at little or no cost,through simple actions or behaviouralchanges. We also suggest longer termmeasures where applicable. Our EnergyEfficiency Helpline is staffed by adviserswho are qualified to NVQ level 2 –"Delivery of Energy Efficiency Advice".With our detailed knowledge of nationalenergy saving schemes and grants, weare able to direct eligible customers tothose that are most appropriate to them.During April 2003 – March 2004, wehandled 16,729 energy efficiency calls.Energy Efficiency Helpline0800 02 22 20 †Lines are open Monday to Friday 8am-6pmand Saturday 9am-12 noon.Where appropriate, verbal advice can befollowed up by any of over 30 factsheetsand information booklets, a home visit ora home survey (as described below).During April 2003 - March 2004, wemade almost 3,000 home visits andcompleted over 750 home surveys.During a home visit a customer willmeet one of our Energy ServicesRepresentatives face to face and receiveadvice including the efficient use ofappliances, heating, lightingand insulation.A home survey questionnaire is available,which is completed by the customer andreturned to us (by freepost). The detailsare then processed by our independent"System 22" computer programme.A comprehensive report is then sentback to the customer, along with anyliterature that would help them actpositively upon the results.Our Energy Services Representatives arealso involved with community initiatives –in the last year they provided informationat more than 100 exhibitions andcommunity events.†Telephone calls may be monitored and recordedfor security and quality control.** Subject to availability and terms and conditions, see page 22.16 npower Energy Efficiency Commitment Annual Report 2003 - 200417 npower Energy Efficiency Commitment Annual Report 2003 - 2004

npower EEC Schemesnpower EECStatisticsScheme codeNPOW02I01CNPOW02I05CNPOW02I06CNPOW02I09CNPOW03126CNPOW02A04CNPOW02A11CNPOW02A15CNPOW02A16CNPOW03A19CNPOW02L03CNPOW02L10CNPOW02L12CNPOW02L13CNPOW02H07CNPOW02H08CNPOW03H20CNPOW03H21CNPOW03H22CNPOW03H23CNPOW03H24CNPOW02M02NNPOW02M14EScheme nameHome Insulation SchemeSocial Housing InsulationWarm Zone & Health Through Warmth integrationDIY Insulation PackageWarm Front TransferFridgesaversRefrigeration Retail SchemeAppliance Retail Scheme 1Appliance Retail Scheme 2Appliance Retail Scheme 3npower Lighting SchemeRetail Lighting Scheme 1Retail Lighting Scheme 2Retail Lighting Scheme 3Social Housing Heating SchemeEnergy Efficiency Heating SchemeGeothermal Heating UnitsSocial Housing Fuel SwitchingDistrict Heating Scheme 1District Heating Scheme 2District Heating Scheme 3Home Energy Survey ESCoEnergy ServicesStatusApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemApproved by OfgemPriority Group Forecast0.0%70.0%75.0%4.0%100.0%100.0%0.0%0.0%0.0%0.0%91.5%0.0%0.0%0.0%70.0%0.0%0.0%70.0%65.0%65.0%65.0%0.0%0.0%19 npower Energy Efficiency Commitment Annual Report 2003 - 2004

npower EEC PerformanceThroughout the EEC programme, npower reports achievedenergy savings to Ofgem on a quarterly basis.100Glossary of termsThe accompanying chart shows our current progresstogether with our energy savings forecast for theremaining periods.Percentageto target806040CFLCO2Comfort benefitDEFRAEECESTFuel povertyGWhCompact Fluorescent Lamp, a low energy lampCarbon Dioxide, the primary gas contributing to global climate changeThe amount of energy efficiency gained from measures installed in the house, takenup by customers in the form of higher levels of warmth or usageDepartment for Environment, Food and Rural Affairs, central governmentEnergy Efficiency CommitmentEnergy Saving TrustA condition suffered by households which spend or need to spend 10% or more oftheir income on energy to maintain warmth and comfort levels in their homes.Gigawatt-hour, a unit of energy equal to one million kilowatt-hours. 1GWh is equivalentto the total electricity typically used by 250 homes in one year.OfgemPriority GroupWarm ZoneOffice of Gas and Electricity Markets, the regulatory body for the gas and electricitymarkets in England, Wales and Scotland.Households in receipt of any of the following benefits: Jobseekers’ Allowance (incomebased), Income Support, Working Tax Credit (with an annual household income of lessthan £14,200), Child Tax Credit (with an annual income of less than £14,200), HousingBenefit, Council Tax Benefit (not including single occupancy reduction), DisabilityLiving Allowance, Attendance Allowance, Industrial Injuries Disablement Benefit (whereit includes Constant Attendance Allowance), War Disablement Pension, Pension Credit.A government-led pilot programme that draws together local partnerships involvingenergy suppliers, local authorities and voluntary groups in a co-ordinated effort totackle fuel poverty in a defined area.NEANational Energy Action, the national energy efficiency charity20NHSNational Health Service0Year 1 SavingsYear 2 SavingsYear 3 ForecastEEC Duration (April 2002 - March 2005)20 npower Energy Efficiency Commitment Annual Report 2003 - 200421 npower Energy Efficiency Commitment Annual Report 2003 - 2004