Boiler Manufacturers Group Meeting Highlights

Boiler Manufacturers Group Tuesday 26thSeptember HHIC, Camden House

Welcome and Apologies Apologies received from: Neil Mattock Neil Schofield Graham Ostle Vaillant (Group meeting)

The Competition Act Members are reminded of the requirements of The Competition Act: As a reputable trade association, HHIC s meetings must comply with the requirements of The Competition Act. This means that we must avoid any discussion that could be construed as being anti-competitive and in particular there must be no discussion about pricing of products and services. By attending this meeting and having your names included in the minutes, all participants confirm that they agree to comply with this policy.

HyDeploy Presentation from the consultants Keele University is set to be part of a ground-breaking programme to demonstrate the use of blended hydrogen - a green gas - in the national gas grid. The HyDeploy Consortium, led by National Grid plc and Northern Gas Networks Ltd, has been awarded funding under the industry-regulator-Ofgem s Network Innovation Competition (NIC), which supports energy projects that demonstrate environmental benefits, cost reductions and security of supply.

Spares Update from committee chairman David Willetts.

Actions last meeting Stewart to write to members reference the Benchmark costs - complete Spares update on agenda WHICH boiler servicing HHIC to contact on agenda Hydrogen position paper ongoing

Industry Statistics Sunny Parekh Economist

Domestic Gas Boilers August 2017 116k boilers sold 1.4% 1.4% on August 2016. YTD 990k boilers - 5.4% 5.4% on 2016. MAT 1.59 million boilers 2.2% 2.2% on 2016. Month YTD MAT Aug-17 Aug-16 % Var Aug-17 Aug-16 %Var Aug-17 Aug-16 %Var 90204 91088 -1.0% 770764 815690 -5.5% 1239522 1263200 -1.9% Combi 10872 10214 6.4% 86710 87484 -0.9% 135333 136874 -1.1% System 14976 16422 -8.8% 133294 143727 -7.3% 217846 228972 -4.9% Regular 116052 117724 -1.4% 990768 1046901 -5.4% 1592701 1629046 -2.2% Total

Energy Company Obligation Jun 2017 3,281 boilers - 69.2% on 2016 . YTD 24.3k boilers 64.5% on 2016. ECO Boiler Installations 12000 10000 8000 6000 4000 2000 0 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17

Domestic Gas Boilers Monthly Boiler Sales 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 Combi System Regular

Predictions Predictions Consumer confidence rose from -12 (July) to -10 (August) Retail sales increase by 1% from July to August Market to remain on trend Forecasting Model HHIC in the process of developing a forecasting model

Hot Water Storage Cylinders August 2017 40.8k cylinders sold 3.3 on August 2016. YTD 323k cylinders - 1.9% on 2016. MAT 485k 3.2% on 2016. Month YTD MAT Aug-17 Aug-16 % Var Aug-17 Aug-16 %Var Aug-17 Aug-16 %Var Conventional 39,007 37,851 3.1% 308,749 315,039 -2.0% 463,622 478,014 -3.0% Renewable 1,863 1,715 8.6% 14,703 14,620 0.6% 21,726 23,446 -7.3% Total 40,870 39,566 3.3% 323,452 329,659 -1.9% 485,348 501,460 -3.2%

Radiators August 2017 507k Radiators sold 7.09 on August 2016. YTD 4 million Radiator sold - 2.3% on 2016. MAT 6.2 million Radiators 2.1% on 2016. Month YTD MAT Aug-17 Aug-16 % Var Aug-17 Aug-16 %Var Aug-17 Aug-16 %Var 507,797 546,521 -7.09% 4,052,077 4,148,249 -2.32% 6,238,589 6,372,674 -2.10% Radiators

Hot Water Storage Cylinders Hot Water Cylinder Sales 60000 50000 40000 30000 20000 10000 0 Jul-15 Jul-16 Jul-17 Jun-15 Jun-16 Jun-17 Apr-15 May-15 Apr-16 May-16 Apr-17 May-17 Nov-15 Nov-16 Dec-14 Jan-15 Mar-15 Dec-15 Jan-16 Mar-16 Dec-16 Jan-17 Mar-17 Feb-15 Aug-15 Sep-15 Feb-16 Aug-16 Sep-16 Feb-17 Aug-17 Oct-15 Oct-16 Conventional Renewable

Radiators Monthly Radiator Sales 700000 600000 500000 400000 300000 200000 100000 0

Benchmark HSE have agreed to pay 150k Manufacturers 250k Next steps update from SC

Domestic Heat Strategy Group

Domestic Heat Strategy Group Boiler Plus Ran from 8th December 2016 to 27th January 2017 Considered several policy options which might form the basis of new regulation to drive energy and carbon savings at the time of appliance replacement Considered mandatory weather-compensation, alongside other options HHIC met with BEIS in early March at the Domestic Heat Strategy Group, to consider and discuss their initial appraisal of consultation feedback, and potential next steps Last meeting 19th September Discussing off grid housing stock

WHICH? HHIC have been working with WHICH A) Service Guide the WHICH servicing survey gave service engineers a poor rating. B) What should a quotation for a heating system include system cleaning is a key item BEIS/HHIC/WHICH meeting Working with water treatment group a) information leaflet to assist quoations b) Water treatment guide is planned

Technical Panel update RoHS 2 Installer responsibility - RD view this as a low-risk area, and RD are not inclined to burden installers with the obligation to CE mark installed systems, WEEE letter received from Ian Smirthwaite who is the Senior Technical Officer, Producer Responsibility Regulatory Services, part of National Trading & Regulatory Services in Environment & Business National Services at the Environment Agency in the UK boilers are out of scope. Circulators (Lot 11) Spares - No concerns were raised by members over potentially pursuing a safety argument, with members feeling this was a legitimate, factual course of action, given the ongoing uncertainties raised by EHI over impact on existing appliance certifications (e.g. GAD, LVD, EMC) where a part (e.g. integrated circulator) which differs to the design specification is required to repair an installed appliance. PCDB - BRE - has written to HHIC regarding a potential technical auditing test procedure for appliances, based on market intelligence, and also randomly. BRE would appear to have a framework in place, although BEIS have no funding for this exercise, so they have suggested HHIC may consider a funding pot. EEpliant see attached slide pack (overview HHIC)

Technical Panel Update PCDB listing cost - HHIC have been contacted by BEIS concerning their contract with BRE, and the listing of new appliances on the PCDB. BEIS advise that they have been subsidising the full cost of product listings since PCDB inception in 1999, and are now considering making changes so that the manufacturer bears the full cost, e.g. 125 for new boiler listing would become 400, MCHP listings would rise from 300 to 700 Gas Quality Frazer-Nash (FNC) meeting - FNC commissioned by BEIS to consider the options, and necessary steps, for the development of domestic appliances to burn Hydrogen. A broad range of discussion, encompassing the drivers (inc. Govt. policy decisions) for Hydrogen R&D, and consumer considerations. Technical discussion focused on the specific components for appliances, and the level of difficulty and evolution required in adapting or re-engineering these for Hydrogen. BEIS 25m project fund tender process for project manager now complete (work package 1). Awaiting announcement of successful applicant. Siloxanes HHIC have requested the full project report from DNV GL & project stakeholders, which was taken as an action at the last IGEM Gas Quality WG meeting. It was said that sharing is possible given that the project was NIA funded. At the IGEM meeting, it was noted that the apparent suggested maximum value of 0.23 mg Si/m3 is at the limits of commercially available detectability, and this may pose problems.

Hybrids Five manufacturers have now agreed to proceed with the SAP methodology for Hybrids. Revised documents received this week from BRE. Methodology to include series and parallel systems.

Each Home Counts final report recommendations The introduction of a new Quality Mark The review proposes to establish a quality mark for all energy efficiency and renewable energy measures, and for all companies operating in this sector. Those who wish to use the quality mark will need to adhere to three key elements which, together with the quality mark, make up the new framework: A Consumer Charter which ensures that all consumers receive excellent levels of customer service, a clear redress process and guarantee protection; A Code of Conduct which sets out how companies behave, operate and report, the requirements of which must be met or exceeded for the company to operate; and Codes of Practice which are relevant to the installation of each measure under consideration so that the risk of poor quality installation is minimised. This will enable the consumer, who seeks to have retrofit work done to their property, to know instantly what to look for to receive high-quality installations or advice.

Each Home Counts 6th of July HHIC met with Alison Oliver (BEIS) and Howard Porter We were invited to the EHC board We were invited to talk about Benchmark Our demands were: Manufacturers were excluded from new accreditation schemes for their products Installers would not have to pay for the Each Home Counts Quality Mark to install products

Each Home Counts By the we had heard nothing so Stewart Clements chased them for a response. We then received a response but with no committal aside from products: Each Home Counts is focussing on the quality and standards of energy efficiency and renewable energy installations rather than the certification process for products. The intention is for products that are already part of a certification scheme which meets, once agreed, the requirements of the quality mark to be able to be used for installations without further or additional certification processes being required. We received a letter (12th July) from Margot James BEIS Minister stating happiness at the resolution on EHC

Each Home Counts Isaac Occhipinti attended a meeting on the 19th of September of the Home Technologies working group. Simon Ayers attended to present on the new Quality Mark. Nothing had changed to address our concerns. Plus 2 new subgroups had been setup to look at cost and implementation. HHIC had not been invited.

Each Home Counts Next Steps: Arrange urgent meeting with Alison Oliver by early October + show draft of new letter to Margot James saying she was misled If at that meeting our requests are not met then we will: Send the response to the Minister Arrange press release and briefing Ask members to write to their local MP Consult with other quality mark schemes

AOB

Meeting dates 2018 Agree dates for next year.