New boiler energy money saving myths exposed
By Value hunter on Oct 24, 2012 | In In real life, Common sense, Bad business, Frugal wars, Quango watch, Rip off Britain
As I write this post, it is "Big Energy Saving Week" - promoted all over twitter (search for #besw), comparison websites, so called consumer groups (like which? consumerfocus energy, citizens advice, etc), in the media, at roadshows up and down the country.
Most claims are quoted using figures obtained from the Energy Saving Trust (EST).
You, yes you, "can get free energy saving advice that can save you money off your energy bills!"
In this post, I look at energy/money saving by replacing the boiler in your home.
The Energy Saving Trust are an "impartial" and "independant" reliable source of information on boilers
"Impartial" and "independant" are common claims bandied around these days, so you decide.
The Energy Saving Trust (EST) from April 2010 until early 2012 was funded jointly by taxpayers and by it's members, by way of "membership fees"
Today, the EST is now a "non profit organisation" which is funded jointly by taxpayers and the private sector by way of "donations".
(Source: http://en.wikipedia.org/wiki/Energy_Saving_Trust)
So who are the members paying the energy saving trust donations?
Many of the same "members" that are now listed as making "donations"
Of the big 6 energy companies - Centrica (British Gas), EDF energy, E.on UK plc, RWE Npower plc, Scottish and Southern energy, Scottish power plc, all donate to the energy saving trust.
Of the big 6 energy companies, I have asked Npower, Eon and British Gas, how much money they paid in a calendar year to the energy saving trust in membership fees, all three admitted paying fees, but declined to tell me how much these "membership fees" were, deemed to be commercially sensitive information!
As the energy saving trust have updated their own wikipedia page, I have no reason to doubt that donations are being made to the EST by the big 6 energy companies.
Of the big boiler makers - Baxi heating UK Ltd and the Worcester Bosch group, also pay donations to the energy saving trust.
National grid transco plc also pay donations to the energy saving trust.
Back in 2008, British Gas, EDF and Scottish power directors sat on the board of the Energy Saving Trust.
Do you still consider the energy saving trust impartial or independant?
"Boilers account for around 60% of what you spend in a year on energy bills"
(Source: http://www.energysavingtrust.org.uk/Heating-and-hot-water/Replacing-your-boiler)
Sadly not, this is factually inaccurate.
(UPDATE: Since posting this in October 2012, the Energy Saving Trust have reduced this figure to "Around 55%" - Edit May 2013)
Angela Knight is the new head of energy trade body, Energy UK.
In one of her first articles she revealed that it was time for an honesty box to be opened with energy companies.
In the same article she stated, "the time is surely past for allegations, assertions and criticisms. We agree that people need to know that their energy costs are fair"
The head of Energy UK (representing energy companies of the UK) then said, "...already the actual cost of energy is half or less of a total household bill"
(Source: http://www.businessgreen.com/bg/opinion/2214398/busting-the-myths-on-energy-companies)
Now do the maths... If only 50% or less of your yearly bill is the energy that you use, then the running energy costs (because maintenence/insurance is a seperate cost from energy) of your boiler cannot be physically or mathematically "around 60% of what you spend in a year on energy bills" can it?
It can only be 60% of half of your yearly energy bill at the most.
This significantly reduces the initial claim of energy costs that the energy saving trust put forward as fact, before basing it's entire "save upto" projected money savings for an energy efficient device, such as replacing a boiler as we are discussing here.
I did ask the energy saving trust for their views, they declined to comment (in real life, they ignored my requests).
Replacing a G rated old boiler with an A rated condensing boiler, with a full set of heating controls, estimated savings (based on a gas heated, 3 bedroomed semi detached house) of £300 per year!
UPDATE: The Energy saving trust have now changed this figure to "£310 per year"
Impossible.
We now know (thanks to Energy UK's honesty) that only 50% of your yearly energy bill is to pay for energy used.
So at the very maximum (if the energy saving trust's savings figures are accurate), the saving could only be up to £150 a year.
How can fitting a new boiler give you energy bill savings, when 50% of that same bill is paying for transco costs and environmental policies made by the government of the day and enforced upon the energy companies?
The simple answer is, it can't.
The energy saving trust website goes further;
Replace a F rated boiler - save up to £200 (UPDATE: Now increased to "Up to £205")
Replace an E rated boiler - save up to £150 (UPDATE: Now increased to "Up to £155")
Replace a D rated boiler - save up to £105
(Source: http://www.energysavingtrust.org.uk/Heating-and-hot-water/Replacing-your-boiler)
These figures are at best 50% wrong, now that Energy UK tell us only 50% or less of your yearly energy bill pays for the energy you use.
A new A-rated boiler will use less energy than an older, lower rated boiler
Not true.
Not my words, but those of a British Gas engineer who, when visiting our home to pressure test our gas meter and pipework, told us directly, "A new boiler will use the same amount of gas as an old boiler"
A new boiler may well emit less Co2 than an old boiler, but in units of gas, they will use the same.
If your boiler has a hot water cylinder and heats hot water everytime your heating is on, as is the case (completely missed by the EST) in millions of council homes, then a new A-rated boiler will use MORE metered units of energy.
A new boiler is more efficient and saves money on hot water
For homes with a regular boiler, ie. those with a hot water tank, depending on the size of your family, the regular boiler is actually MORE efficient.
Not my words, but those of the energy saving trust!
"A regular boiler is actually more efficient than a combi at producing hot water in the first place..." & "...A large family using lots of hot water could be better off with a regular boiler"
(Source: http://www.energysavingtrust.org.uk/Heating-and-hot-water/Replacing-your-boiler)
It took a while for the energy saving trust to post this, I cannot recall it being included on the pre 2012 version of their website, it seems to have appeared since their website was updated, but I could be wrong.
According to the energy saving trust, a large family using lots of hot water will be better off with a regular boiler (in normal speak, this is an old back boiler with a hot water tank) - my family are not large, not even above the average 2.4 children size, yet we have found that it is more expensive - uses more metered units, with the new boiler than it was with our 30 odd year old back boiler and tank!
A new A-rated boiler uses less energy
Rubbish.
When measured in units of energy used, our new boiler uses more energy.
With the old back boiler, hot water was used, the water was gravity fed from a tank, water was replaced in the tank via a mechanical device (ie, the float) which uses no energy.
With an A-rated boiler, water is pumped through the pipes all the time, using energy.
Water is heated as it goes through the boiler, using energy.
The new boiler continues to operate up to 2 minutes after the hot tap is turned off, using more energy.
The new boiler uses more water than the old boiler (energy saving trust promote saving water as well) when I run the hot tap, the water takes a minute or so to come through as hot. With our old boiler, only the water in the pipe was run through and cold. Even with shorter pipework from the new boiler to the kitchen sink tap, the wait for hot water is longer.
With an old back boiler, the amount of gas used can be controlled, similar to gas cooker ring.
Under the fire there is a control knob to reduce the amount of gas used.
With an A-rated boiler there is no such control. Regardless of use, regardless of climate, it uses the same amount of gas.
In summer, on our old boiler we used to turn down the setting for heating and hot water to 2, in winter we used to turn it back up to 6. Makes a mockery of all the new smart energy meters we are paying for through our energy bills, to gain control of our energy use, when we used to have control of the gas used with our old back boiler!
A new boiler will pay for itself over time
This is one of the main reasons for this post. This claim is false.
We have established that the energy saving trust's projected bill savings, even when maximum savings are made, are 50% out.
The energy saving trust have dropped their average lifespan of a boiler, from their website (I cannot find it - you try) which was quoted as being 12 years for an A-rated boiler.
If this 12 year lifespan is accurate, then at the maximum possible saving of £150 per year for changing a G rated boiler with an A rated boiler and the average cost of £2300 for the boiler itself (ours cost £2700 to buy and install) it would take over 15 years to pay for itself.
That's right, your boiler would be more than 3 years out of its normal lifespan before it covered it's own and installation costs!
Costs to maintain your new boiler?
I can find no mention of maintenance costs on the energy saving trust's website, nor are they mentioned by media, websites, etc, that promote fitting a new boiler quoting energy saving trust figures - British gas homecare cheapest plan is £9 per month, covering just your boiler and not your heating system, which is an extra £108 per year to pay out - cutting your "savings" even more.
£2300 to fit new boiler with a 12 year lifespan.
£150 maximum savings - boiler would take 15.3 years to pay for itself.
£150 maximum savings minus a basic maintenance policy to cover the boiler with british gas, reduces maximum savings to just £42 per year on energy bills.
(£150 - £108 for year long maintenance contract = £42 saving)
At £42 per year (maximum savings) a new boiler (£2300 to buy and install) would take a staggering 54 years to pay for itself!
This is why it was important to show how the energy saving trust is funded and by whom prior to looking at replacing your boiler.
For me, it shows the energy saving trust is nothing more than a marketing tool for the energy industry.
I can see no financial case for changing a working old G rated back boiler for a new A rated energy efficient boiler.
How do the energy saving trust get away with publishing figures that are clearly inaccurate?
It's not as if the advertising standards agency has anything to do with the energy saving trust, does it Sir Hayden Phillips, who is the "independent" reviewer of the adjudications of the Advertising Standards Authority and a trustee on the board of the energy saving trust!
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