Industry Updates and Trends Report May 2018
Economic growth in terms of GDP grew by 0.1% in Q1, while construction output declined sharply. Domestic gas boilers sales saw fluctuations compared to the previous year. Energy Company Obligation numbers also showed changes. The report provides detailed insights into the economic and industry updates for May 2018.
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Presentation Transcript
Apologies Andrea Carmeli - Alpha Neil Mattock Vokera Steve Zouch Intergas
Actions previous minutes Benchmark update on agenda Each Home Counts update on agenda HHIC to review boiler plus with WHICH - complete Boiler Plus Scotland and Wales on agenda DHSG controls definitions on agenda Members to confirm on HHIC lunch - complete SAP 10 update on agenda
Economic and Industry Update
Economic Update Economic growth in terms of GDP grew by 0.1% in Q1 Construction output declined sharply in Q1 Growth of services and manufacturing slowed in Q1 Household consumption in Q1 remained subdued Consumer confidence index in the UK climbed two points from the previous month to -7 in May 2018
Domestic Gas Boilers May 2018 115k boilers sold 8.7% 8.7% on May 2017. YTD 713k boilers - 9 9.1% .1% on 2017. MAT 1.63 million boilers 2.3% 2.3% on 2017. Month YTD MAT % Var %Var %Var May-18 May-17 May-18 May-17 May-18 May-17 87806 83128 555721 506486 1266411 1240204 Combi 5.6% 9.7% 2.1% 11059 9851 62382 56025 139685 135466 System 12.3% 11.3% 3.1% 16773 13429 94919 91254 226550 220904 Regular 24.9% 4.0% 2.6% 115638 106408 713022 653765 1632646 1596574 Total 8.7% 9.1% 2.3%
Energy Company Obligation March 20187 4,169 boilers - 40.7% on 2017 Qualifying gas boiler replacement 2312 Qualifying non gas boiler replacement 1745 YTD 10.6k boilers 39% on 2017
Hot Water Storage Cylinders May 2018 39.5k cylinders sold 3.2% 3.2% on May 2017 YTD 197k cylinders - 2% on 2017. MAT 483k 0.9% on 2017. Month Month YTD YTD MAT MAT Aug-17 May-18 Aug-16 May-17 % Var % Var Aug-17 May-18 Aug-16 May-17 %Var %Var Aug-17 May-18 Aug-16 May-17 %Var %Var Conventional Conventional 39,007 37,499 37,851 36,535 3.1% 2.6% 308,749 187,317 315,039 192,762 -2.0% -2.8% 463,622 459,629 478,014 465,803 -3.0% -1.3% Renewable Renewable 1,863 2,013 1,715 1,769 8.6% 13.8% 14,703 10,588 14,620 9,104 0.6% 16.3% 21,726 23,420 23,446 21,407 -7.3% 9.4% Total Total 40,870 39,512 39,566 38,304 3.3% 3.2% 323,452 197,905 329,659 201,866 -1.9% -2.0% 485,348 483,049 501,460 487,210 -3.2% -0.9%
Radiators May 2018 544k Radiators sold 9.3% 9.3% on May 2017. YTD 2.6million Radiator sold - 1.3% on 2017. MAT 6.2 million Radiators 2% on 2017. Month YTD MAT May-18 May-17 % Var May-18 May-17 % Var May-18 May-17 % Var 544,334 497,624 9.39% 2,666,243 2,703,046 -1.36% 6,250,737 6,378,964 -2.01% Radiators
Policy Update Call for evidence in the future of heat Future of gas and hydrogen Brexit Eco
HSE Gas Safe Register retender - The Gas Safe Register (GSR) provides the official list of gas engineers registered to work legally and safely in GB. This is currently run by Capita Gas Registration and Ancillary Services (CGRAS) on behalf of HSE under a 10-year Service Concession Agreement (SCA) which expires on 31 March 2019. Now a five year contract
Benchmark HHIC have been meeting with Gas Safe and our legal team to see if we can come to an agreement for the project. The current position is that due to the re- tendering process of the Gas safe register, and the timeframes that surround that process, we have not been able to conclude an acceptable agreement for both parties HHIC and Gas Safe. That is not to say that this will not be possible, it just means that it cannot be achieved with sufficient due diligence within the current timescales without affecting the re-tender process. Therefore we have agreed to park the discussions until the re-tender process is completed and the new provider of the Gas Safe register is in place and the initial requirements of that process have been implemented. All parties including the HSE, Capita (current Gas Safe register provider) and ourselves believe that our initiative will make a significant improvement to Gas Safety along with its other attendant benefits to our industry. There is a real desire to pick this back up again as soon as possible.. Should Benchmark be a standard? What will Benchmark look like in 2020 more connected homes etc HHIC Intern to review?
BMG SUB GROUP- BENCHMARK SPARES Spare parts to be included in Benchmark Proposal almost complete Needs to be reviewed by wider industry Agree next steps??
Hydrogen; Hy4Heat WP1 Programme management WP2 Definition of a Hydrogen quality standard WP3 Establishing an appliance and equipment testing capability WP4 Development of domestic Hydrogen appliances WP5 Understanding commercial appliances WP6 -Understanding industrial appliances WP7 Assessment of suitability of existing buildings WP8 Trialling Hydrogen appliances in unoccupied buildings WP9 Preparations for occupied consumer trial Over view from Elaine Lancaster
HyDeploy HyDeploy Potential for 20% hydrogen to be added to the gas main HHIC have joined the HSL working group.
Frozen Condensate Summary of Guidance Internal Condensate connection Where an installer is fitting a new or replacement boiler the condensate drain pipe should be connected to an internal gravity discharge point such as an internal soil stack (vent), washing machine outlet or sink waste. External pipes from sink wastes or washing machine outlets should be insulated with waterproof UV resistant material, terminated below the grid but above the water line and a drain/leaf guard fitted. The waste pipe should be cut at 45 degrees where it terminates to the grid (New diagram required) Condensate Pumps Where it is not possible to connect the boiler condensate pipe to an internal gravity discharge point then the installer should use a condensate pump connected to a suitable internal connection point such as internal soil stack (vent), washing machine outlet or sink waste. (See section XXX) Existing Installations When servicing or repairing a boiler the heating engineer should check any boiler installations especially those that have external condensate drains to see if they can be terminated internally or upgraded to the latest guidance. The responsible person (home owner) should be advised and it is recommended that the installer completes the responsible persons frozen condensate information leaflet as a suitable means for advising the work that is required. This guidance should be followed where work is carried out to upgrade the condensate drainage system to reduce the risk of freezing in extreme conditions and it is recommended that the condensate pipe is identified with a suitable label even if the responsible person does not go ahead with the upgrade so as to allow easier identification in the future. Product Guidance Information regarding available products supplied by HHIC members for condensate products can be found at www.xxx. It should be noted that the manufacturer of the preventative products is responsible for their suitability for use with a condensing boiler
Frozen Condensate Boiler Manufacturer s Warranty Information From the 1st January 2019 where a new boiler installation is not connected to an internal discharge point but should have been, then the boiler warranty may be invalid if an internal termination was possible. It should also be noted that where the following guidance or manufacturer s instructions have not been followed then the boiler warranty may also not be valid. Note - the Benchmark Commissioning checklist supplied with the boiler and detailed in the manufacturer s instructions requires the heating engineer to confirm that the condensate drain has been fitted correctly Text above to be agreed by BMG
Freezing condensate Action Plan Through the SCF, HHIC have raised whether the IG/1 training specification is adequate for this topic as this will inform the training courses which are Through the SCF, HHIC have raised whether the IG/1 training specification is adequate for this topic as this will inform the training courses which are developed for new entrants to the gas industry . developed for new entrants to the gas industry Update guidance Have agreed to work with WHICH on consumer information Possible condensate solutions suppliers morning Overview of guidance HHIC members suppliers web page for condensate solutions to help educate the installer Interaction with Merchants WPR PR campaign Installer magazines
EACH HOME COUNTS PAS 2035 NEW STD HHIC have met with BEIS BEIS have loaned 1.8 million There would be a charge - 40 for each installer?
Clean Growth Strategy Clean Growth Strategy: All options for decarbonisation of heat are still on the table with more research into costs and feasibility to be done over the next 2 years, this include biogas and hydrogen Oil to be phased out of heating for new and replacement, but no immediate time table given, we expect a call for evidence soon An aspiration for all homes to be Band C by 2035 if cost effective and practical Commitment for ECO to be extended to 2035, focus on insulation Commitment for RHI but no real detail New building regulation consultation once the Grenfell enquiry is completed. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/651 232/BEIS_The_Clean_Growth_online.pdf
Clean Growth Strategy Boiler + Changes to the Domestic Building Services Compliance Guide came into effect on 6th April, implementing the requirements of the Boiler + policy Additional guidance on Boiler + now published by HHIC: https://www.hhic.org.uk/uploads/5B1E75E44B78C.pdf Some anecdotal feedback from a large HHIC installation business member that large contracts, such as housing associations, had been willing to upgrade the installed boiler stock and associated additional measures ahead of time to be compliant, not necessarily always seeking the lowest-cost option but the best one for their tenants. The next key milestone for the policy is due to be a BEIS health- check planned for one year in (circa April 2019)
Boiler + BEIS have tweeted their endorsement of the new HHIC guidance, describing it as clear and accurate https://twitter.com/beisgovuk/status/1008672688502640640
Domestic Heat Strategy Group Boiler plus plus(++) discussed last meeting Medium and long term plan for domestic heat New build/off grid Controls Workshop Next slide
HHIC/BEAMA workshop Controls definitions supporting Boiler + HHIC/BEAMA workshop to discuss the establishment of clear definitions for the control functions that are incorporated within both conventional and smart controls for heating and hot water in the residential sector. The workshop is targeted at manufacturers of such devices. Many of these definitions are already in place, but there are acknowledged inconsistencies and gaps, particularly with respect to new technologies that have emerged over the last few years. The aim is to produce a full set of generic definitions, agreed across industry, to enable performance data and policy interventions on controls to have a clear, comparable basis without impacting on the ability of manufacturers to promote or get credit for the performance of proprietary technologies. The targeted outcome of this work is an open set of definitions that UK manufacturers and policy makers will adopt, building on established definitions wherever possible. The activity is managed by HHIC and BEAMA on behalf of the BEIS Domestic Heat Strategy Group.
SAP 10 The Standard Assessment Procedure (SAP) is the UK methodology for assessing the energy and environmental performance of homes. SAP has a fundamental role in driving energy savings at household and national levels. It underpins modelling for policies that drive carbon savings and bill reductions, and allows for the creation of Energy Performance Certificates (EPCs). For new dwellings, SAP is the vehicle for demonstrating compliance with Building Regulations, giving it a vital role in Government s efforts to improve our housing stock. SAP10 BEIS attended the Boiler Technical panel meeting to give an overview of SAP10 so member had an early opportunity to review the proposals. HHIC also employed a consultant to review the changes to SAP 10 for boilers with major changes being incorporated by BRE and a full understanding of the overall requirements. Government response published November 2017 More emphasis on controls initial credit for a boiler is reduced and the credits are gained with controls Sarah Montgomery advises June https://www.gov.uk/government/uploads/system/uploads/attachment_dat a/file/660478/Government_Response_-_Changes_to_SAP_FINAL-v2.pdf
Boiler Technical Panel activity EHI European Activity Lot 1 & Lot 2 review study Ecodesign Discussions reflect the fact there are still mixed views about 3rd party verification as required for boiler ErP efficiency. Notable benefits to a 3rd party having assessed efficiencies claimed. Debate should 3rd party verification be extended to other product groups. Review of other parameters for verification CO and Hydrocarbons view that they should not be included in the verification process ACTION: HHIC to update EHI on UK view, noting uncertainty around whether 3rd party verification would be extended to other new criteria which may be introduced by the review Low Energy Pumps EHI requesting evidence why new low energy pumps are not suitable for older appliances to be suppled to European commission.
Boiler Technical Panel European Activity Drinking Water Directive(EHI) The group discussed that any links between boilers and the CPR were still a concern, with it unclear exactly what was proposed and how the suggested mechanism to link the DWD and CPR would operate. It was discussed that the different treatment methods used by various member states for drinking water would make it extremely difficult to harmonise hygienic requirements. This was also understood to be the view of Paul Millard (WRAS). ACTION: HHIC TO CONTACT EHI TO SEEK GREATER CLARITY ON PROPOSALS AND EXPRESS CONCERNS AROUND CPR
Boiler Technical Panel activity NHBC Guidance proposed changes The group have been reviewing the proposals and in particular cold water inlet temperature used for calculations. 10C down to 7C HHIC should voice the view that there should be a transition period, and no backdating of new requirements Low gas pressure review IGEM Report from BSI advising appliance are safe at 17.5 milli bars Proposal from 11tp to turn on all taps when networks are investigating low pressure instead of test mode. Reviewing improvements in best practice at IGEM with networks
Controls EUA Smart Connected Controls Group Smart Connected Not currently covered By HHIC HHIC Boiler Controls Group Room Controls Boilers
Controls Room controls scope increasing in the market and for HHIC members Greater synergy between boiler controls and room controls in future (and since boiler+) Greater synergy between boiler and smart controls ongoing Note: EUA existing group role Should we extend the current boiler controls group to include room controls and smart etc? HHIC to write to members regarding the inclusion of control sales in our statistics?
AOB Request from Installer committee for carton information This appliance must be installed by a gas safe registered engineer and the engineer must complete the Benchmark commissioning checklist as part of the warranty
