UK has fallen short on energy-efficient homes, says heating group chief

Ministers have not done enough to improve energy efficiency in UK homes, said the head of domestic heating provider Volution, warning that energy price caps are not a long-term solution to soaring costs this winter.

Ronnie George, chief executive of the FTSE 250 group which produces a range of ventilation and heat recovery systems for residential buildings, as well as radiators and other heating devices, called for the UK to follow the likes of Germany and take more interventionist action to refurbish the nation’s homes, which are among Europe’s worst insulated.

“If you subsidise energy, you don’t deal with the root of the problem,” he said, referring to measures set out in last month’s “mini” Budget to cap household bills through public funding.

Although George said he understood why the price cap was introduced, he added: “Wouldn’t it be great if we had some sort of meaningful programme of refurbishing the 20mn privately owned homes in the UK, which could, if they were properly refurbished, be run more efficiently?”

With energy costs rising, the government has been under pressure to finance support for homeowners.

George was speaking to the Financial Times before the new chancellor Jeremy Hunt slashed the price freeze for household energy bills from two years to six months in an effort to calm rattled markets.

The policy U-turn followed years of what campaigners have criticised as insufficient action to improve energy efficiency in UK homes.

George conceded that more decisive action seemed unlikely.

“Do I believe we will see something more profound from the UK government? No, history tells us that’s not the case,” he said in an interview before Liz Truss resigned as prime minister, adding that the government could offer loans for home improvements if it decided to take action.

“In two years’ time, if energy costs are the same, do we do the same again? I don’t think that’s the answer. You’ve got to come up with a more meaningful energy reduction programme.”

Any comprehensive programme to refurbish UK homes could benefit Volution.

In recent years, the Sussex-based group has increasingly expanded across Europe, where George said Volution has benefited from a more supportive regulatory environment.

This month, Volution reported that non-UK customers now accounted for 62 per cent of its revenue, compared with 53 per cent five years ago.

During the 12 months to July, it said sales grew 13 per cent to £308mn, while pre-tax profits jumped 57 per cent to £47mn, as the group generated growth from two acquisitions in continental Europe.

“There’s got to be a better agenda around [refurbishment in the UK],” said George. “I see this in Germany, for example, where the market’s more considered around refurbishment and we get a lot of support for our heat recovery ventilation products.”