Matt Pumfrey

Continuing insights from Cornwall's Draft Housing Decarbonisation Strategy, heat pumps can be 90%+ cheaper to operate than gas or oil boilers, offering a long-term solution to fuel poverty as well as heat decarbonisation, but the detail is important. Good system efficiencies, time of use tariffs and solar PV are key, and different strategies are required for households paying via direct debit vs prepayment meters. Figures below are based on OFGEM typical domestic consumption values (these are also used to calculate the price cap rates) to illustrate the pathway to affordable electrification. Net bills for households on time of use tariffs with heat pumps and a ~5kW solar PV array could be £176 per year, compared to £1,928 for a gas boiler or £1,902 for an oil boiler without solar on Q1 2024 price cap rates. If this sounds too good to be true, consider the Octopus Energy zero bills offer, which provides five years without energy bills for new homes with heat pumps, a decent sized solar PV array and battery storage. Applying a similar package of measures to existing buildings can also bring bills down to negligible amounts, as many homeowners with heat pumps, solar PV, and time of use tariffs already know. #heatpump #retrofit #netzero #fuelpoverty #decarbonisation

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UK Carbon Regulator is essential for the functioning of a net zero economy - Energy Systems Catapult (ESC) released its Operationalising a Carbon Regulator report, which aims to guide the development of a robust regulatory framework for carbon accounting in the UK. ESC states that a Carbon Regulator would be “crucial” to the standardisation of carbon accounting practices, emphasising that the implementation of a Carbon Regulator is essential for the functioning of a net zero economy by: reducing investment risks; building investor, business, and consumer confidence; and levelling the playing field for innovators. The report outlines that a UK Carbon Regulator could utilise its potential position as a first mover to promote the credibility of UK low carbon industry, while demonstrating the value of nationally coordinated carbon accounting regulations. In delivering this, ESC notes that a Carbon Regulator would require a mandate to enable continuous international engagement. https://lnkd.in/eEXm4sV9

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BUSINESS AND PUBLIC SECTOR ORGANISATIONS BRACE FOR IMPACT AS WATER BILLS SOAR! It’s interesting that very little noise has been made within the media circles regarding the recent increases in water, wastewater, trade effluent and surface water charges for business and public sector customers, which are by any measure significant and will exceed many customers budget projections....... #BusinessNews #Business #Water #WaterBills #PublicSector #Schools #WaterBillsSoar #Procurement #EnergyProcurement #Utilities #Energy #WaterIndustry  

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We had such a great time yesterday at the panel event hosted by #Metris in partnerships with #octopus, mingling with industry leaders and debating opportunities, challenges and solutions to scale up the adoption of solar energy in the UK for commercial properties. Justine O'Mahony FCCA Mila Bessmann Yoshihito Nozoe Key take out for the panel and discussions were: ☀ Solar panels improve the bottom line for commercial property landlords but many of them are not considering generating income from solar assets. 🏬 Some of the barriers for large adoption is the complication leasehold agreement that are in place for some buildings which creates a disconnect between landlords and tenants (ie the ones who invests in solar installations may not be the ones reaping the benefits) With utility prices at current levels investors need to be comfortable with 10-15+ year payback periods in order to incentivize landlords and tenants ➡ Meeting ESG goals are in the mind of large organisations, however most are still at the beginning of the journey with a focus on short term goals and gains. 👨‍👨‍👦 Our panel noted that prices for solar are near bottom now due to fierce competition by manufacturers but leads them to predict they may go up again in the near future. 🏦The PPA market is evolving, and new models of solar funding are developing to cater for commercial customers ready to maximise the benefits of producing their own solar energy A lot of vivid discussions also took place amongst participants where we met great people. Thank you #metris for getting us together

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Last year National Grid set near-term climate targets to align with a 1.5 degree pathway in our refreshed Responsible Business Charter. I am now delighted to share our second Climate Transition Plan (CTP) which explains how we plan to achieve these near-term targets and get to net zero by 2050. It also details the actions we’re taking to meet our targets and where we need support from others. We have tried to align this plan as closely as possible to the recently published Transition Plan Taskforce (TPT) guidance and are pleased to be an early adopter. A huge thanks to everyone who has helped pull this together but especially Steven Thompson, Liam Goucher and Suliman Ahmed #ResponsibleBusiness #climatetransition #cleanenergy #Sustainability

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Our reflections on what the Draft Determination means for Smart Water Metering: Yesterday’s Draft Determination is a pivotal moment for Smart Metering in the UK Water Sector. It is both an exciting moment, as a major enabler of sustainable reductions in PCC, Business Demand, and Leakage. We are pleased to see that Ofwat has included direction that is aligned with several of the recommendations we have made to them in a report they commissioned from us that will be published later in the summer.    Here are a round-up of observations from that we think water companies will need to consider rapidly: - We welcome the ambition of Ofwat to set standards to help underpin the benefits. Ofwat’s Price Control Deliverable sets a stretching goal for the sector. Achieving consistent >95% connectivity and completeness of hourly reads will require the right technology choices over the long term, supported by robust operational MI and controls and outcomes-based commercial models. Procurement evaluations must take into account total cost of ownership including the PCD penalty risk of a lower priced, but less reliable solution. - Water companies need to take action now to collaborate on standards by 31st Dec 2025 (and we are well placed to help with this). - Water companies need to develop robust annual reporting and assurance of their roll out and benefit realisation (particularly as Smart Metering specific water efficiency and leakage benefits need to be isolated from other measures). -There is significant risk in the Unit Rate inclusions for many. Ofwat is allowing £124 per unit for like for like meter replacement for both Households and Non-Households (excl. upgrades to make the meter “Smart AMI”). If you have a significant volume of boundary box replacements, or medium/large meter replacements, then achieving this rate could be challenging so should be considered in responses to the draft determination. - This could also be exacerbated if the rapid increase in demand for assets and labour in the early years leads to price inflation above expected rates, as was seen in the energy sector. - There is helpful clarity on which costs count into which type of expenditure and there are uplifts to Enhancement cases for some, however there has also been some scope re-allocation e.g. Customer Supply Pipe Leakage has been allocated to Smart Metering enhancement. So close scrutiny is required to assess the impact of the Draft Determinations on business cases, scope and budget assumptions to be able to respond effectively and with confidence.   Please get in touch with me or Sam Barton if you would like to discuss these topics and challenges further. #smartmetering #draftdetermination #ofwat #smartwater

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Our reflections on what the Draft Determination means for Smart Water Metering: Yesterday’s Draft Determination is a pivotal moment for Smart Metering in the UK Water Sector. It is both an exciting moment, as a major enabler of sustainable reductions in PCC, Business Demand, and Leakage. We are pleased to see that Ofwat has included direction that is aligned with several of the recommendations we have made to them in a report they commissioned from us that will be published later in the summer.    Here are a round-up of observations from that we think water companies will need to consider rapidly: - We welcome the ambition of Ofwat to set standards to help underpin the benefits. Ofwat’s Price Control Deliverable sets a stretching goal for the sector. Achieving consistent >95% connectivity and completeness of hourly reads will require the right technology choices over the long term, supported by robust operational MI and controls and outcomes-based commercial models. Procurement evaluations must take into account total cost of ownership including the PCD penalty risk of a lower priced, but less reliable solution. - Water companies need to take action now to collaborate on standards by 31st Dec 2025 (and we are well placed to help with this). - Water companies need to develop robust annual reporting and assurance of their roll out and benefit realisation (particularly as Smart Metering specific water efficiency and leakage benefits need to be isolated from other measures). -There is significant risk in the Unit Rate inclusions for many. Ofwat is allowing £124 per unit for like for like meter replacement for both Households and Non-Households (excl. upgrades to make the meter “Smart AMI”). If you have a significant volume of boundary box replacements, or medium/large meter replacements, then achieving this rate could be challenging so should be considered in responses to the draft determination. - This could also be exacerbated if the rapid increase in demand for assets and labour in the early years leads to price inflation above expected rates, as was seen in the energy sector. - There is helpful clarity on which costs count into which type of expenditure and there are uplifts to Enhancement cases for some, however there has also been some scope re-allocation e.g. Customer Supply Pipe Leakage has been allocated to Smart Metering enhancement. So close scrutiny is required to assess the impact of the Draft Determinations on business cases, scope and budget assumptions to be able to respond effectively and with confidence.   Please get in touch with me or Sam Barton if you would like to discuss these topics and challenges further. #smartmetering #draftdetermination #ofwat #smartwater

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🌍 UK’s Energy Future: Key Pathways & Strategic Priorities for a Resilient, Sustainable Grid ⚡ #NetZero #NESO #UKEnergy #Renewables As the UK accelerates toward its net-zero goals, the energy landscape is transforming rapidly. [National Energy System Operator (NESO)] is leading initiatives like the Strategic Spatial Energy Plan (SSEP) and Future Energy Pathways (FEP) to create a grid that can sustain the UK’s clean energy future. Partnering with Ofgem and other bodies, NESO is focused on shaping a resilient, sustainable grid. Here’s a look at the critical elements guiding this transformation. 🛠️ 1️⃣ Decentralization & Grid Flexibility Decentralizing and increasing grid flexibility are key for resilience amid rising demand and renewable expansion. SSEP’s roadmap targets high-demand bottlenecks and creates a grid that supports local energy sources, from solar farms to offshore wind. 🔹 Insight: Decentralization boosts renewable integration, reduces transmission costs, and improves efficiency, especially in energy-intensive regions. Discussion: How can AI and machine learning enhance real-time grid flexibility? 2️⃣ Strategic Infrastructure Investment The Centralized Strategic Network Plan (CSNP) from NESO and Ofgem prioritizes impactful investments for emissions reduction and grid stability, aligned with Clean Power 2030 goals, ensuring sustainable energy access nationwide. 🔹 Challenge: Balancing infrastructure investments with affordable consumer prices is complex. How do we maintain this balance? 3️⃣ Hydrogen & Battery Storage Integration Hydrogen is emerging as essential for grid stability, providing critical backup to renewables. NESO is exploring hydrogen-ready and battery storage solutions to enhance supply reliability and renewable integration. 🔹 Insight: Which regions might see the largest impact from hydrogen? What challenges lie in scaling this technology? 4️⃣ Pathways to Clean Power by 2030 The Clean Power Pathways support UK’s roadmap to decarbonize by 2030. NESO’s framework prioritizes renewable connections and regulatory reform to support net-zero targets. 🔹 Challenge: How can technology accelerate these pathways? What innovative steps support ambitious decarbonization? 5️⃣ Stakeholder Collaboration for Holistic Solutions NESO and Ofgem highlight cross-sector collaboration. Aligning local authorities, industry, and innovators aims to unify strategies for energy security, affordability, and sustainability. 🔹 Engagement: How can we foster stronger collaborations across energy, policy, and tech to drive effective change? NESO’s strategic planning and innovation in building a future-ready grid make the UK a model for sustainable energy. 🚀 How are you contributing to the energy transition? Let’s discuss ideas and solutions! 👇 #EnergyTransition #GridModernization #Hydrogen

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£88bn expenditure planned for UK #water sector between 2025-2030 This morning, Ofwat published its Draft Determinations on water company allowances for the #AMP8 regulatory period (2025 to 2030), representing a substantial increase in investment when compared to the current regulatory period. The headline numbers include significant efficiency challenges for water companies to meet, with the £88bn total 16% below the level companies had sought. Of the £88bn, £10bn is set to tackle storm overflows with a target to reduce spills from storm overflows by 44% from levels in 2021. This should deliver welcome progress in an area of public concern, but demonstrates that totally solving this challenge will take multiple price control periods. At a glance, performance targets will be tough for the industry to achieve, especially in wastewater. When compounded with higher incentive rates, and fewer caps and collars than at PR19, this looks set to be another tough outcomes settlement. Elsewhere Ofwat has sought to reduce risk to the sector through the use of approval 'gates' for large investment schemes, greater risk mitigation for changes in the costs of labour, energy and plant and material costs and high sharing rates for much higher outperformance. Based upon these plans, customer bills will increase by 23% on average, from £436 in 2024/5 to £536 in 2029/30 for the median combined water and wastewater bill. Water companies now have until 28th August to respond to Draft Determinations and Ofwat will publish Final Determinations in December 2024. What is already clear is that the period from 2025 to 2030 will be very busy for the water sector with important delivery targets and a need to rebuild trust after a challenging few years. Get in touch for some expert help!

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The Channel 4 programme “Skint” - presented by the economist Tim Harford explained in simple terms how GDP had fallen below its historic trajectory- and a major reason for this was a lack of investment by business to improve productivity- but for business to succeed- investment is needed in our roads/ green transport/ electricity grid etc - but most importantly- the need to build more affordable homes for where the economic growth opportunities are expected- it’s a no brainer - the Scottish Federation of Housing Associations , Homes for Scotland , CIH Scotland Shelter Scotland and Joseph Rowntree Foundation (JRF) have all been saying this for years!!!! So if we want a just economic transition- we need our politicians to prioritise a long term investment programme in our infrastructure and build more homes - otherwise businesses will invest elsewhere in the world .

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Heat pumps can already be much cheaper to run than gas boilers based on our analysis of the Agile Octopus dynamic electricity tariff, where the electricity to gas price ratio has been well below the ratio for basic price cap rates aside from during the energy price crisis. Full write-up here: https://lnkd.in/eyfhM6eZ

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Interesting series of articles from the Guardian myth busting heat pumps. This one looks at noise, which is a curious concern that the anti-change lobby seem to have picked up on. Right now I can hear wind in the trees, cars on the nearby road, a plane overhead, dogs barking, a lady trying to stop her dog barking (unsuccessfully), a small child playing, a gate closing, a car door closing, someone running.... That's because I'm actively listening. But 99% of the time my mind ignores all these noises. It's hard to imagine heat pumps dramatically adding to my current suburban noise array. https://lnkd.in/eEtWtDSZ #heatpump #sustainablehomes #netzero

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Thanks to the Energy Institute for publishing my article on the benefits of hydropower for a decarbonised grid. Hydropower = key to unlock decarbonising heat and transport at community level Pumped Stotage Hydropwer = grid flexibility, storage and stability Tidal Range = timetabled energy generation next to population centres for 120 years + A diverse energy mix brings resilience and resilience has to be the mantra of this new government looking to decarbonise the grid by 2030.

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To secure the right energy contract to support your net zero journey, join our expert led webinar, https://lnkd.in/eyKd-nka. Learn how to overcome the challenges of securing clean energy; being trapped by untransparent contracts, hidden fees, and a lack of data visibility. Our clean energy sourcing team work in collaboration with companies like True - Powered by Open Energy Market to secure renewable energy contracts that help businesses reach their net zero targets while saving money. One of my favourite success stories is with Fooditude, where our team successfully negotiated a 15% price reduction with their existing supplier, bringing them one step closer to their net zero goal. At Planet Mark, we work in collaboration to support organisations in achieving net zero by providing accessible solutions in all areas, including clean energy. If this interests you, please check it out using the link below. https://lnkd.in/eyKd-nka

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All Energy Day 2 Net Benefit Gain is a hot topic if you are developing in the renewables sector at the moment. In England, we now have the NBG metric up and running where a 10% increase on the baseline is now the norm. So what about Scotland, well following the close of the consultation last week from the Scottish Government, it has been confirmed that the Scottish system should be confirmed by Early 2025. The other nugget is the Local Biodiversity Action Plans are due to play a more prominent role in these enhancement measures with a nod that they need upgraded to align with NPF4. Finally a good point from Cameron where Habitatment Plans are usually good but it is there implementation that is still lack. A point worth remembering. #netbenefit #scottishrenewables #wind

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A timely news story just published. Yesterday, as part of keeping current, I attended the Women on Boards UK Greenwashing webinar. Today's news, the EU is getting tougher on greenwashing. Data points to 53% of green claims being vague, misleading or unfounded, with 40% having no substantiating evidence. The aim here is to ensure that ecological claims are systematically substantiated and verified. "The central idea is that before using a green label, a retailer must gather all the evidence to support the veracity of its claims. In addition, an independent verifier will have to ensure that the evidence is correct and sufficient to meet all the requirements of the directive", explains Miriam Thiemann, Policy Officer for Sustainable Consumption at the European Environmental Bureau. Having worked in advertising in my early years, everything had to be supported and evidenced before we would even consider making a claim. Running things through with advertising standards was part of the course. Today, the ASA uses AI to proactively trawl the internet to find unsupported greenwashing claims, accounting for c. 30% of all reported breaches of the Green Claims Code 2021. The regulations in this space are coming thick and fast, and it's the role of the board to keep on top of this evolving landscape of green and social claims, and ESG reporting obligations. Also, consumers are savvy. They are getting wise to brands that fall short of their expectations - and they don't stay silent about it. #greenwashing #regulations #carbonneutral #social #ESG https://lnkd.in/eAtxtz5E

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Ouch. We REALLY need better community involvement in solar farms. Partial community ownership is the strongest way to get people on board. UK solar trade body Solar Energy UK recently said similar in their best practice guide: https://lnkd.in/ezgBeCeH "In some circumstances, there may be an opportunity for communities to share ownership of a solar farm project. Shared ownership gives local individuals and community groups the chance to make an investment in a commercially owned solar farm. This can open new financial streams for the community and build an active body of stakeholders who can share the financial benefits across the community. This is also beneficial to the developer, as it encourages positive engagement with the project and helps to build a more resilient industry over the long term." https://lnkd.in/ekHThMZv

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