News
Business Trends Survey shows mixed picture
THE ECA’S LATEST QUARTERLY BUSINESS Trends Survey has revealed that market confidence for 2012 varies significantly across the industry, despite a largely positive end to 2011.
The final three months of last year saw an increase in turnover for nearly a quarter (24 per cent) of member businesses, and no change for a further 39 per cent. Despite this, the overall outlook for 2012 was quite pessimistic, with 41 per cent of respondents anticipating a fall in turnover during the year, and an additional 39 per cent expecting no change. Looking back to Q4 2010, member businesses had very similar levels of optimism, with 42 per cent expecting a fall in turnover, and 36 per cent anticipating no change. The fact that 24 per cent of respondents saw an increase in turnover during that period is also consistent with the predictions at the end of Q4 2010, when 23 per cent predicted that turnover would increase throughout 2011. Steve Bratt, ECA group chief executive
officer, commented: ‘We are still feeling the effects of the recession, and consumers and contract clients alike continue to be cautious about spending. This is reflected in the demand that members are experiencing. We are hopeful that the announcements made in the recent budget will have a positive knock-on impact for our members. For example, up-front cash loans that will be made available for construction companies and housebuilders should mean that more schemes can be
progressed, and our members can benefit from the increased workload.’ Regionally, member businesses in the
north west, west and Greater London saw the greatest increase in quarterly turnover for the last quarter of 2011. Unsurprisingly, they were also the most optimistic regions for both the first quarter of 2012 and the year ahead. In the third quarter of 2011, ECA member businesses with turnovers between £200,000 and £1m were very pessimistic, with 50 per cent anticipating a decrease in turnover for Q4. Despite this, just 34 per cent actually saw a decline and, as a result, these businesses are now the most optimistic group for Q1 2012. The outlook of all other business sizes was less optimistic, with most expecting a fall in turnover. Those turning over between £1m and £5m had the most pessimistic expectations, with 46 per cent anticipating that their turnover would fall during the first quarter of 2012. Bratt said: ‘Although the Supreme Court’s decision to quash the government’s FITs appeal will ease some turmoil, the uncertainty that members are currently experiencing looks set to continue, as the Green Deal remains under a lot of speculation. The ECA is recommending that the Department for Energy and Climate Change works to encourage “active” energy saving measures, such as solar photovoltaic panels and smart heating and lighting controls. This will not only serve to cut costs and carbon emissions for consumers but provide vital opportunities for electrical contractors.’
BEAMA urges early RHI signals from government
BEAMA HAS WELCOMED THE RENEWABLE HEAT Premium Payment (RHPP) extension. This follows its recent provision of evidence to demonstrate that industry is now marketing the scheme strongly and determined to grow uptake along the way to a definitive Renewable Heat Incentive (RHI) for domestic dwellings. Kelly Butler, BEAMA’s marketing director, said: ‘Recent meetings with DECC have shown that government is really taking renewable heat seriously, and this extended commitment to £25m from £15m last year is good news and gives confidence to the whole supply chain.’ The announcement of the extension was delivered with the disappointing news of a delay to the full RHI until summer 2013. Commenting on this, Butler said: ‘It has been clear that the introduction of the RHI in 2012 was not going to happen and we have briefed our heat pump manufacturers along these lines for some months now. ‘But the good news is that government remains committed to renewable heat so we should be pleased and confident for the future. However, what the minister and officials have to better understand is that industry needs to budget just the same as DECC and the Treasury, so we now want to see some early signals of some firm dates for introduction so we do not end up in an industry endlessly waiting for a government scheme. If the government wants to meet its fourth carbon budget targets, then 600,000 heat pumps need to be installed by 2020 and this will take firm policy direction and early action.’
Smart meters in 30m homes and businesses by 2019
SOME 30 MILLION HOMES AND SMALL businesses in the UK will have smart meters by 2019, according to the Department of Energy and Climate Change (DECC).
Energy and climate change minister Charles Hendry said that, in less than three years, energy suppliers will begin the mass rollout of smart meters across the country. He stated: ‘I am determined that consumers are at the heart of this ambitious programme. That is why we are proposing tough guidelines on installation, which will minimise inconvenience and help people to make the most of their smart meters to save energy and save money. In addition, I want to be
6 ECA Today May 2012
absolutely clear to consumers that they will be in control of their energy consumption data.’ The government is also publishing an update to the Smart Meters Implementation Programme, consultations on the Smart Energy Code and the Data and Communications Company licensing conditions, the Government Response to the Rollout consultation, and updated Impact Assessments for the domestic and non- domestic sectors. It is also publishing the Smart Metering Equipment Technical Specifications (SMETS), which will enable suppliers to install smart meters during the foundation stage that will satisfy their rollout obligations.
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