Our Markets
As tackling climate change, reducing carbon emissions, controlling energy costs and promoting energy conservation have moved towards the top of the political, social and environmental agenda of government and business, demand for energy efficiency products and services has grown. The core markets in which Eaga operates are significantly influenced by Government policy on the environment, energy efficiency and social justice.
Fuel Poverty, Energy efficiency, Insulation, Social Housing, Domestic Central Heating Installation and Servicing, Energy Performance Certificates, Carbon and Water Neutrality
Fuel Poverty
Eaga is the leading deliverer of UK governments' fuel poverty programmes, underpinned by over 15 years' experience of dealing with the most vulnerable groups in society. In 2001 the Government published a legally binding "Fuel Poverty Strategy" which made a commitment to eradicating fuel poverty for all households in England by 2016 and to eliminate fuel poverty in vulnerable households (those containing children, the elderly, the disabled or the long term sick) in England by 2010. Policy instruments such as Warm Front in England have been developed by Government to focus on tackling fuel poverty and increased public funding has been allocated to achieve the fuel poverty strategy goals.
As lead contractor for all four regions of Warm Front in England and the Home Energy Efficiency Scheme (HEES) in Wales Eaga is able to deliver 30 percent of the installation work through its in house teams. Eaga's Government Contracts division also manages the Warm Homes scheme in Northern Ireland.
Although significant progress has been made since 2000, recent energy price rises have pushed a significant number of additional households into fuel poverty which means it is unlikely that the 2010 target will be achieved without significant additional funding being made available by Government. For every one percent increase in energy prices 40,000 vulnerable people fall back into fuel poverty.
Energy efficiency
Energy Efficiency Commitment. Eaga is a leading provider of household energy efficiency measures for utility companies under the Energy Efficiency Commitment (EEC). Established by Government in 2002, EEC sets and enforces targets for utility companies to reduce domestic energy usage as part of their supply licence conditions. In order to meet their EEC targets, utility companies offer to fund measures that will reduce energy consumption, predominantly through improved insulation.
The 2006 Climate Change Programme has already announced that the third phase of EEC (EEC3), which is due to commence in 2008, will set targets that are expected to be 50 - 100 percent higher than they are now.
Insulation
Eaga is a leading installer of residential insulation services. The insulation market has grown rapidly in recent years, fuelled by efforts to improve the standards of housing and combat fuel poverty and by requirements to reduce carbon emissions.
There are approximately 26 million homes in the UK of which 15 million are estimated to have cavities that can be filled. Approximately 9 million cavities remained unfilled at the beginning of 2007 (based on Defra forecasts, July 2006). In addition, the majority of loft insulation currently installed in UK homes is recognised as below the standard required by Government.
Social Housing
Eaga is a key player and rapidly growing supplier into the social housing sector. The Government has set targets for all local authorities to have all social rented homes meeting Decent Homes standards by 2010. This requires homes to be fit for habitation, in a reasonable state of repair, with reasonably modern facilities and services and a reasonable degree of thermal comfort.
Eaga works with some of the UK's largest social housing providers (including Birmingham and Leeds City Councils and the Northern Ireland Housing Executive) to deliver gas central heating servicing, repair and installation services and plans to leverage its current position in the heating market to broaden its offering to include activities such as kitchen and bathroom installations.
The social housing refurbishment and maintenance market is worth an estimated £10 billion per annum and the supply chain is highly fragmented, offering significant growth opportunities for the larger players as contracts become larger and longer in duration.
Domestic Central Heating Installation and Servicing
Eaga is the second largest installer of central heating in the UK behind British Gas and has a growing presence in the servicing market. Eaga is seeking to increase its market share in the able to pay market by leveraging its national infrastructure base and will continue to work with the social housing sector, Government Contracts as an installer on Warm Front and other government funded schemes.
The UK central heating market is worth up to £5 billion per annum and is forecast to grow in real terms.
Energy Performance Certificates
As part of its focus on reducing carbon emissions the Government has prioritised Energy Performance Certificates as the key document contained in the new Home Information Packs (phased launch expected in August 2007).
Energy Performance Certificates will give consumers information on the energy efficiency of a property and outline practical steps that home owners can take to reduce their household carbon emissions and save on energy bills. Eaga is already exploring opportunities in this emerging market and has a well developed energy performance certificate product
Carbon and Water Neutrality
Government carbon reduction priorities and new building regulations mean that the new-build housing sector is looking for greater carbon efficiencies. Eaga is piloting a "balanced trading" scheme working with the Government on the high profile Thames Gateway development and with two national house builders to provide insulation and other energy efficiency measures to older houses in the local area surrounding new housing developments to offset the increase in carbon generated by building new homes.
Water supply issues in the South East are already classified as a serious problem and public water supplies are stretched to critical levels at peak times of the year. Utility companies and developers are now looking for significant water efficiency savings and whilst the installation of water meters may work for some customers, it is not necessarily a viable option for vulnerable customers who may incur higher bills as a result. Eaga has recently completed a successful water efficiency pilot with South West Water and Defra aimed at reducing water usage by providing householders with water efficiency measures.
Eaga is already the UK's largest installer of residential energy efficiency measures and has a national delivery network in place to facilitate the delivery of carbon and water neutrality work.