By Neil Turner, Director, Howarth Litchfield
As we move towards spring and warmer weather – yes, I do live in hope – I am very conscious of the current turmoil in the Middle East on energy prices.
Separately, from April, the Energy capped prices are coming down with a 6% reduction in gas and a 13% reduction in the electricity (for domestic properties). It is quite possible that we will see an increase later in the year if the current issues in Iran continue much longer.
There has been remarkably little news on the energy cap and its significance. Various elements of the electricity bill, including a contribution towards PV and heat pumps, are being moved to general taxation. This is very sensible and starts the gradual shift – and need – for electricity to become cheaper relative to gas.
If consumers and commercial clients are going to move across to electricity-based heating, which is more efficient than gas heating, then the core unit costs of electricity must come down. This is an important first step and more reductions will be needed.
I have seen lots of commentators and knowledgeable people noting that electricity prices need to come down to generate interest in heat pumps and create a real demand. That demand will create the marketplace. Only when the maths makes sense will the majority of people change their decisions on new boilers.
I have written before that I am fan of heat pumps for many reasons. They are reliable, safe and use less carbon than fossil-fuelled alternatives. They can be made even more efficient when combined with PV / wind turbines and further again, with batteries.
Even if you are not convinced by the green credentials and sadly many people still deny the issues surrounding climate, then financially we need to see the argument become so much stronger. More people will be influenced by economics alongside the green arguments.
What the events of the last month have shown, once more, is how we all are reliant on fossil fuels and affected by the volatility of price fluctuations. I am not going to comment on those events, but the impact shows why all property development must try to mitigate the potential impact of rising fuel prices with strategies that avoid gas/oil and focus on self-generation.
All developments for domestic and commercial use need to reduce energy use, so it’s essential that improving the U values (thermal efficiency targets) must be a constant focus. The better insulated a building, then the less energy it uses. It sounds so obvious doesn’t it.
So, designing low energy buildings in combination with sustainable plant energy choices helps isolate you from the wider world issues, and the potential increases in gas and electric prices.
With the knowledge and help of mechanical and electrical engineers (M+E), as architects we encourage clients to think about green energy. It’s always complicated when telling a client that an element of their project will have a higher capital outlay, but over time the payback and the green credentials will be worth it. Life is about choices and, at the moment, it never seems to get easier.
Neil Turner, Director, Howarth Litchfield can be contacted on 0191 384 9470 or email n.turner@hlpuk.com
www.howarthlitchfield.com