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 End of Year Report8 Nest End of Year Report 9
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
Eligibility breakdown
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
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
Eligibility breakdown
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
Nest End of Year Report10 Nest End of Year Report 11
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
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
Eligibility breakdown
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
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
Nest End of Year Report12 Nest End of Year Report 13
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.
Nest End of Year Report14 Nest End of Year Report 15
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.
Nest End of Year Report16 Nest End of Year Report 17
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
(%)
Central heating installation
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
(%)
Central heating installation
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
rma
rthe
nshi
re
Pow
ys
City
of S
wa
nsea
Cere
dig
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
Conw
y
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
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
hshi
re
Flin
tshi
re
Gw
yned
d
Isle
of A
ngel
sey
Mer
thr
Tyd
fil
Mon
mou
thsh
ire
Nea
th P
ort T
alb
ot
New
por
t
Pem
bro
kesh
ire
Pow
ys
RCT
Swa
nsea
Torf
aen
Vale
of G
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
Nest End of Year Report18 Nest End of Year Report 19
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 chart on the right shows
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
(%)
Central heating installation
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 End of Year Report20 Nest End of Year Report 21
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
Nest End of Year Report22 Nest End of Year Report 23
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
%42 Number of Loft Insulation Installed
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
nsea
Cere
dig
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
Conw
y
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
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
ion
Conw
y
Den
big
hshi
re
Flin
tshi
re
Gw
yned
d
Isle
of A
ngel
sey
Mer
thr
Tyd
fil
Mon
mou
thsh
ire
Nea
th P
ort T
alb
ot
New
por
t
Pem
bro
kesh
ire
Pow
ys
RCT
Swa
nsea
Torf
aen
Vale
of G
lam
org
an
Wre
xha
m
£
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.
Nest End of Year Report24 Nest End of Year Report 25
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
re
Conw
y
Den
big
hshi
re
Wre
xha
m
Bla
ena
u G
wen
t
Brid
gen
d
Swa
nsea
Caer
phi
lly
Vale
of G
lam
org
an
New
por
t
Rho
ndd
a C
ynon
Ta
ff
Nea
th P
ort T
alb
ot
Torf
aen
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 chart on the right shows
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
%42 Number of Loft Insulation Installed
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
%42 Number of Loft Insulation Installed
Number of Cavity Wall Insulation InstalledUptake of partial
Grant vouchers% Complaints per Installed
Household
No Complaints
Complaints
Urban
Rural%20.6
%79.4
%1.7
%98.3
Nest End of Year Report26 Nest End of Year Report 27
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
%42 Number of Loft Insulation Installed
Number of Cavity Wall Insulation InstalledUptake of partial
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.
Nest End of Year Report28 Nest End of Year Report 29
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.