Written evidence submitted by Anglian Water
Inquiry into the energy efficiency of existing homes
Anglian Water is the largest water and water recycling company by geographical area in England and Wales, serving over 6 million customers between the Humber and Thames estuaries. The region we serve is water-stressed, high growth, and already experiencing challenges from the impacts of climate change.
The population in our region is expected to rise by 20% over the next 25 years, so it is important new housing development is both water and energy efficient. However, the far bigger challenge to address is the existing housing stock, built to much lower energy and water performance standards in years gone by. As part of the green recovery from COVID-19, the government must fulfil its manifesto pledge and announce plans to invest £9.2 billion in the energy efficiency of homes, schools and hospitals.
Therefore, we welcome this inquiry and we urge the committee to explicitly link energy and water efficiency to recommend simultaneous action on both by the government. Heating water in the home accounts for 17% of household greenhouse gas emissions. Improving the water efficiency of taps, showers and water-using appliances is therefore critical to achieving the UK’s net zero target and doing so will reduce both water and energy bills. Reducing water consumption is also critical to meet the challenges highlighted in the recent NAO report on water supply and demand management.
In the attached appendix I have outlined the case for tackling water and energy efficiency together, and proposed a number of ways to improve them both within the existing housing stock.
EAC Inquiry: Energy efficiency in the existing housing stock
Anglian Water Services Ltd.
Reducing water consumption reduces energy use
Heating water (for showers and hot taps, dishwashers, washing machines etc) is the largest source of carbon emissions in the home after space heating, see figure below[1]. According to government figures, each home emits 18.6 tonnes of CO2 a year through water heating. Reducing water consumption in the home is a quick win with products now on the market that deliver the same performance and customer experience whilst using much less water.
Reducing water consumption saves households money through lower water and energy bills
More efficient taps, showerheads, dishwashers and washing machines will have knock on impacts for metred water and energy consumption. The chart[2] below demonstrates the energy bill savings that can be made from installing water efficient fittings and appliances.
Policies to improve water efficiency offer benefits far in excess of policy costs
Carbon emissions from water consumption in the home could be cut relatively easily by introducing the following policy measures.
- Mandatory water efficiency labelling for taps, showers and appliances
Evidence shows that introducing a water efficiency labeling scheme together with minimum product standards is the most cost-effective way to reduce household water consumption in existing buildings. A report by the Energy Savings Trust[3], commissioned by the UK Water Efficiency Strategy Steering Group, found that mandatory labelling, minimum product standards and tighter building regulations on water consumption could deliver a £36 billion saving to households through lower water and energy bills over the next 25 years. The financial benefits of this policy in lower utility bills would outweigh policy costs by a factor of 60 or more, and reduce UK greenhouse gas emissions by 55 million tonnes CO2e.
We believe clauses within the Environment Bill could be used to introduce a mandatory water efficiency labelling scheme. Such a scheme would drive manufacturers to develop more efficient products whilst empowering consumers to make informed choices. This measure would also help reduce non-household water consumption for example in hotels, schools, gyms and offices.
- Local authorities should integrate water efficiency into household retrofit schemes, in particular for social housing
As noted by the Committee on Climate Change[4], there are number of low regret water efficiency actions that can be taken that have a positive impact on energy efficiency. However, consumer awareness is low and it should be incumbent upon local and national government to drive change in this area to support activity by water companies. For example, local councils are uniquely placed to promote improvements in their communities, for example in social housing and the private rented sector. Water efficiency measures should be included in local energy efficiency retrofit programmes and water efficiency should be included in social housing quality standards.
- The government’s Future Homes Standard should cover both water and energy performance, and be applied to both new builds and the existing housing stock
The pledge from government to develop and implement a Future Homes Standard (FHS) is most welcome. At its heart, the FHS must require high performance on both water and energy efficiency. We urge government to explore the potential for the FHS to be applied to the whole housing stock, not just new builds, if properties can demonstrate they meet certain performance criteria. The FHS could become a quality mark of environmental excellence for those buying, building and improving homes.
Minimum water efficiency performance within a Future Homes Standard should be set at 100 litres per person per day or below. In the long term, this minimum standard should be tightened to 85l/p/d to further reduce water and energy consumption. Any property acquiring the standard should have a smart water meter installed so that the household can understand their consumption and look for further ways to save money.