Tackling Fuel Poverty

Fiona Hannon Energy Action Fuel Poverty Conference 2014

What’s happened in the last 12 months

Energy Engage Code?

•

To keep disconnections in the electricity and gas markets to an absolute minimum Suppliers committed to never disconnecting an engaging customer

What is it?

•

A joint commitment from suppliers to:

– Never disconnect an engaging customer – Treat customers as individuals – Offer a range of payment and repayment options – Work with customers to find the most suitable solution for them – Provide every opportunity to remain connected – Always offer a PAYG meter where possible – Work more closely with agencies representing customers – VDP, MABS

Results so far

•

Those who are aware of the Code are more positive about contacting us and more likely to proactively contact us

•

Code has become widely publicised by customer representative groups

•

Key assistance from SVP and MABS promoting the Code

How’s the industry doing?

Reduction in Electricity Disconnections Electricity Disconnections/ 10,000 customers 2012-2014*

120 100 80 60 40 20 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 *All figures taken from published CER Retail Market Monitoring Reports

Electricity PAYG meters installed 2012-2014 Electricity PAYG Installed

50 000 45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014

Correlation between PAYG and Disconnection

6000 5000 4000 3000 2000 1000 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 50 000 45 000 40 000 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 No. of disconnections PPM Installed

Reduction in Gas Disconnections Gas disconnections/10,000 customers 2012-2014

180 160 60 40 20 0 140 120 100 80 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Gas PAYG Installed 2012-2014 Gas PAYG Installed

40000 35000 30000 25000 20000 15000 10000 5000 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

Correlation between PAYG and disconnection

3000 2500 2000 1500 1000 500 0 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 40000 35000 30000 25000 20000 15000 10000 5000 0 No of Disconenctions PPM installed

Summary

•

Continuing downward trend

•

Direct correlation between PAYG availability and disconnection

•

Figures include vacant properties – working with CER to identify these properties to remove them from reports

What’s SSE Airtricity doing?

Increasing options for customers

•

An Post Household Budget Scheme – first supplier in 20 years to enter the scheme which allows direct payments from social welfare benefits towards bills

•

Top up options – over phone, online, Paypoint, Payzone

•

Lifestyle PAYG metering

SSE Airtricity Energy Efficiency Initiatives

How do they work?

• • • • •

Working in partnership with bodies including county councils and SEAI SSE Airtricity manage the project from end to end Contribute time and financial resources Aiming to reduce bills by increasing energy efficiency in homes Measures include loft & cavity insulation, upgrading boilers, storage heaters and installing new windows

Fingal Project

• • • •

Worked with SEAI & Fingal County Council 69 Local Authority Homes involved 60% homes in fuel poverty before project commenced Installed new high efficiency gas boilers and undertook BER assessments

Wexford Project

• • • •

Worked with SEAI & Wexford County Council 102 Local Authority Homes involved 80% homes in fuel poverty before project commenced Installed cavity and loft insulation at properties and undertook BER assessments

Dun Laoghaire Rathdown Project

• • • •

Worked with SEAI & Dun Laoghaire Rathdown County Council 80 Local Authority Homes involved 60% homes in fuel poverty before project commenced Installed new high efficiency boilers, cavity and loft insulation at properties and undertook BER assessments

Limerick Project

• • • •

Worked with SEAI & Limerick County Council 444 Local Authority Homes involved 80% homes in fuel poverty before project commenced Installed cavity and loft insulation at properties and undertook BER assessments

What’s Next?

For SSE Airtricity?

•

Continue to work with customers and explore new budgeting options

•

Working with the Energy Engage Code to encourage engagement with customers who may be struggling

•

Continue to work to bring energy efficiency to homes through partnerships

For energy?

•

Wider availability of prepayment meters for customers in need

•

Implications of energy efficiency obligations

•

What about VAT rate? 5% UK 5.5% France

Thank You