Skidmore review only scratches the surface in spelling out urgent energy efficiency measures

Chris Skidmore MP’s long-awaited review of the UK’s progress towards its net zero goals rightly
underscores how critical energy efficiency is for achieving these ambitions.

Skidmore’s review is a breath of fresh air in detailing what must be done to drive energy efficiency to
boost energy security and affordability in the UK, and to keep the country on track to realise its net
zero targets by their 2050 deadline.

Grundfos has long called upon the Government to invest in energy efficiency. Hopefully, this review
marks the beginning of more comprehensive change.

This change should consist of an overhaul of the EPC ratings system; mandated best practice for the
installation of boilers; the optimisation of heat networks; and the development and execution of a
wide-reaching public awareness campaign.

Revamp EPC ratings

Firstly, the Government must address energy efficiency at its source – going beyond insulation to
tackle the issue of inefficient energy systems in homes and workplaces. That should start with
overhauling the EPC rating system.

Skidmore is right to recommend that Government legislate that the minimum energy efficiency
rating for all non-domestic buildings achieve an EPC rating of ‘B’ by 2030. Yet, if the Government
wants to get serious on transforming the efficiency of homes and buildings across the UK, it must
adopt a more robust, all-encompassing approach.

In the spirit of tackling energy inefficiency at the root, EPC ratings should assess the efficiency of a
building’s heating system. With over 25 million gas boilers in the UK – many of them old and
inefficient – EPC ratings must consider the efficiency of a boiler and its components, specifically
circulator pumps.

The Government should mandate a check on the system at least every 24 months to ensure that
energy systems remain at acceptable levels. Mandating a minimum EPC rating of ‘B’ by 2030 will go
the extra mile in fuelling energy efficiency, but only if the rating evaluates the crucial components of
a building’s overall efficiency.

Mandate installation best practice

With an estimated 1.7 million annual boiler retrofits in the UK, there is a tremendous opportunity to
boost efficiencies by ensuring that installations are aligned with best practice. It is well-documented
that hydraulic balancing is a simple way to improve heating distribution, thereby decreasing the
demand and use of energy. By making sure that boiler retrofits are conducive to hydraulic balancing,
we can curb energy demand throughout the country.

Though upgrading the energy efficiency of our heating systems will not be achieved overnight, there
are many small, cost-effective improvements at our disposal – such as implementing hydraulic
balancing – that can deliver a high rate of return on investment while contributing to the UK’s long-
term energy efficiency goals. Mandating installation best practice is a necessary step in encouraging
these positive upgrades.

Optimise heat networks

According to Simon Woodward, Chairman of the UK District Energy Association, the Government
considers heat networks as a cost-effective way to decarbonise the UK’s heat supply in the long run.
The Government must therefore put its money where its mouth is and invest in heat networks –
ensuring that they operate at the most cost effective and efficient performance levels. In line with
the Heat and Building Strategy, Government should mandate that all local authorities prepare a heat
network optimisation plan by 2024.

A rollout of heat networks across all local authorities would provide the UK with an equivalent of the
EU’s “Fit-for-55” plan for a green transition, while offering a cost-effective way to decarbonise
heating infrastructure across the country. Such a plan would incentivise investment and, down the
line, could remove reliance on fossil fuel boilers by 2040.

Launch a public awareness campaign

Lastly, there is a clear imperative to educate the British public on energy efficiency. Grundfos’
research has uncovered current, prevailing attitudes towards energy efficiency in the UK, including
consumer opinions on the main obstacles of implementing energy efficient measures. The report,
‘Powering Energy Efficiency’, reveals that households and businesses are incurring massive financial
losses – to the tune of £3.1 billion worth of savings annually – by not improving energy efficiency in
their homes and properties.

The survey identified a stark shortfall in awareness around energy efficiency as a key reason why so
many people were missing out on savings. More than a quarter (26%) of consumers never monitor
the energy performance of their heating system, while 40% only check it once a year. On top of this,
a quarter of consumers named perceived high upfront costs as the main hurdle holding them back
from investing in efficiency improvements, in contrast to the relatively low costs of actually making
those upgrades.

Grundfos fully supports Government efforts to raise public awareness of the benefits of low-carbon
heating systems, and the financial savings and environmental benefits of energy-efficient solutions.
Given that the UK will only ever achieve its net zero ambitions with the public’s buy-in, these
awareness-raising initiatives are vital.

The independent review by Chris Skidmore gives us reason to be hopeful that the Government will
prioritise energy efficiency as a means of achieving its net zero targets and alleviating the financial
burden on households and businesses. But it only scratches the surface of what needs to be done to
drive energy efficiency in the UK and make ‘Mission Zero’ a reality.

Issue 125

SBM 125

Sustainable Business Magazine