Transcript Document

CAN Training Day
4th July 2014
Fuel Poverty Policy Update
Peter Sumby
Director of Development
NATIONAL ENERGY ACTION
Fuel Poverty Statistics
Using the LIHC definition
• 2.28 million fuel poor households in England: 5%
decrease from 2011,
• Depth of fuel poverty also showing a slight decrease
• DECC projections for 2014 show an upward trend
• The poorest continue to live in the worst homes
– 35% of households living in the least efficient properties in
fuel poverty
– only 2% in the most efficient properties.
Fuel Poverty Statistics
DECC’s 2014 annual statistics on fuel poverty
(2012 data) can be found at:
https://www.gov.uk/government/uploads/syste
m/uploads/attachment_data/file/319280/Fuel_
Poverty_Report_Final.pdf
Fuel poverty sub-regional statistics can be found
at
https://www.gov.uk/government/collections/fu
el-poverty-sub-regional-statistics
Domestic Renewable Heat Incentive
(RHI) Goes Live…. ….. but leaves fuel poor out in the cold
• Launched 9th April 2014
• Pays participants of the scheme that generate and use
renewable energy to heat their buildings
• Open to homeowners, private landlords, social landlords and
self-builders
NEA campaigning to ring-fence part of the domestic RHI budget
to provide upfront capital support and assistance
with maintenance costs for low income households
For more info on the domestic RHI visit:
https://www.gov.uk/government/policies/increasing-the-use-of-lowcarbon-technologies/supporting-pages/renewable-heat-incentive-rhi
Proposed Changes to ECO
NEA’s priority areas for Govt. to address;
• Carbon Emission Reduction Obligation
(CERO) target should not be reduced by 33%
• Introduction of ‘mandated’ referrals with
guaranteed assistance for specified
householders
• Min. energy efficiency standards - a target of
EPC band B by 2030 for all low income
homes
ECO – Energy Company Obligation
• CSCO - Carbon Saving Communities Obligation
• CERO - Carbon Emissions Reduction Obligation
• HHCRO - Home Heating Cost Reduction Obligation
UK Fuel Poverty Monitor 2013-2014
The Monitor is a report, produced by NEA, which summarises
and assesses the activity being undertaken at UK and national
level to address fuel poverty.
The report focuses on the different
approaches the Westminster and the
devolved governments are taking to tackle
the root cause of this issue: an energy
inefficient housing stock.
http://www.nea.org.uk/policy-andresearch/publications/2014/monitor-2014
UK Fuel Poverty Monitor 2013-2014
Findings
• UK-wide and national-level findings on the scale and causes of fuel poverty
• The report finds that there is a lack of coordination across the nations
• Scotland and Wales are leading other countries on providing government-funded,
area-based and whole-house approaches to energy efficiency
• England continues to provide no recurrent funding and lacks a binding duty for
local authorities to address environmental and social objectives through housing
• Notes the GB wide impact of the proposed changes to ECO
UK Fuel Poverty Monitor 2013-2014
Recommendations
1.
2.
3.
4.
UK Government should massively expand resources for energy efficiency, but
especially for low-income households living in the worst properties and most
deprived areas
UK Government must recognise the impact that energy policy set in
Westminster has on the whole of GB and must quantify the impacts on fuel
poverty across the respective nations before making significant policy
decisions
HM Treasury must not directly benefit from any schemes that effectively
increase the cost of energy
There is a need for greater and more transparent coordination across the
Westminster and devolved governments on all consumer energy issues
NICE Consultation
On 13th June 2014 the National Institute for Health and Care Excellence (NICE) issued a
consultation on their draft guidance on how healthcare professionals must take action
on cold homes
NICE recommendations include:
• Providing a one-stop local health and housing referral service for people
living in cold homes which offers access to grants for housing insulation
and heating.
• Identifying people at risk of ill health from living in a cold home.
• Ensuring vulnerable hospital patients are not discharged to a cold home by
turning on the heating before they get home or providing advice on how to
use the heating system.
• Training heating engineers, meter installers and those providing building
insulation to help vulnerable people at home with sensitivity.
Consultation responses by 25 July 2014. For further info visit:
http://www.nice.org.uk/nicemedia/live/13899/68006/68006.pdf
Electricity Demand Reductions
• NEA considers Distribution Network Operators (DNOs) can (and
must) play a key role in incentivising permanent electricity demand
reductions on their networks
• Will not only help to avoid unnecessary load related network
reinforcement but will also have a direct positive social outcome
• NEA recommends DNO support for large scale heating system
replacements, lighting improvements and insulation programmes
• NEA underlines that this activity must be central to the new
distribution price control (ED1) starting in 2015.
Scale of Fuel Debt
Q2 2013 (April – June) Ofgem Figures
1.6 million domestic electricity accounts (5.8 per cent) and 1.5
million domestic gas accounts (6.5 per cent) were in debt.
Average levels of electricity and gas debt outstanding were £316
and £341 respectively, up four per cent and nine per cent from
the end of 2012.
Scale of Fuel Debt
Ofgem - Domestic suppliers' Social Obligations Report
Total in Debt
Q4 - 2012
Q1 - 2013
Q2 - 2013
Electricity
1,358,764
1,477,765
1,555,968
Gas
1,194,853
1,292,776
1,448,577
April - June 2013
Total number of
PPM’s installed
To recover debt
Requested by
customer
Electricity
72,209
57,978
14,231
Gas
75,229
60,839
14,390
Ofgem puts big six energy suppliers under
Competition and Markets Authority spotlight
• The big six energy suppliers face a probe from
Competition and Markets Authority after referral
from the energy watchdog
• The big six suppliers will be under the spotlight for
the next 18 months as the CMA looks at whether
profiteering has occurred and if they should be
broken up.
Ofgem leads radical shake up of
energy switching process
• Ofgem approves suppliers’ proposals to cut switching time to
three days after statutory two week cooling off period, by the
end of 2014
• Ofgem is leading radical reforms to put next day switching in
place by end 2018 at latest
• Proposals will also improve the reliability of the switching
process
• Faster and more reliable switching set to improve consumer
confidence to shop around for a better energy deal
Please contact:
[email protected]
www.nea.org.uk