Energy UK response to the Home Energy Model (HEM): Energy Performance Certificates (EPC) Consultation

Executive Summary 

Energy UK welcomes the Government’s ambition to achieve closer alignment between energy performance assessments for new builds and existing properties to improve Energy Performance Certificate (EPC) standardisation and relativity, making comparisons between ratings simpler for buyers and prospective tenants. 

The inclusion of cooking appliances, recognition of bidirectional charge points, and Smart Meter Enabled Thermal Efficiency Ratings, and a move toward a modular approach within the Home Energy Model (HEM) for existing dwellings are similarly welcome. 

DESNZ should additionally: 

• Mandate that the use of simplified measurements is justified to encourage measurement accuracy where technically feasible. 
• Detail how the fraud risk associated with increased complexity of the HEM will be mitigated considering the increased number of inputs and the associated the risk of human error.  
• Outline how properties unsuitable for certain technologies due to spatial constraints, i.e. flats, can be rated fairly and are able to benefit from and be engaged with smart readiness. 
• Provide clarity on how the Government will support the assessor supply chain understand and have capacity to implement the more complex HEM system. 
• Consult on whether hybrid heating systems that include a biomass element should not be able to score above D, considering that the Climate Change Committee does not see fossil-fuel, biomass or hydrogen hybrid heat pump systems as part of its Balanced Pathway. 
• Consider how smart meter and tariff advice could be integrated within the EPC process to support household awareness of the benefits of using energy flexibly. 
• Mandate landlords to arrange a smart meter installation to rent a property to mitigate the risk of gaming to comply with Private Rented Sector Minimum Energy Efficiency Standards (PRS MEES). 
• Consider requiring a broadband connection to reach Band C to align with the rollout of VWAN. 
• Use £ to present the cost metric if quarterly and dynamic updates are achievable. If unachievable, the cost metric should be presented on an A-G scale.  
• Calculate the cost metric using a smart tariff so that it reflects and incentivises higher bill savings and clearly outline cost assumptions to households.