Introduction to Energy Poverty Brussels 29.11.11 Brenda Boardman Emeritus Fellow ECI University of Oxford
Dec 24, 2015
Introduction to
Energy Poverty
Brussels
29.11.11
Brenda Boardman
Emeritus Fellow
ECI
University of Oxford
UK definition
• A household is in fuel poverty if it needs to spend more than 10% of its income on fuel to maintain adequate energy services
• Fuel poverty = energy poverty
• Energy efficiency = the cost of achieving energy services, in UK
Possible European definition
• A household is in fuel poverty if it needs to spend more than twice the median (as a proportion of income) on energy
• Median, all households = 6%
• Fuel poverty = 12%
• Treatment of housing costs and family size affect who is defined as fuel poor
Affordable warmth
10% of income for all
energy services
Energy efficiency
of the dwelling
24 hour mean
internal temperature
of 18°C(+ other energy
services)
} {
Income + housing
Low income High incomeEnergy
inefficient housing
Energy efficient housing
Fuel poverty by income, UK 2009
DECC Fuel Poverty Statistics, 2011, p29
Characteristics
• Low income
• No savings
• Energy-inefficient homes
• Small households
• A lot of elderly people
Who are the vulnerable?
• Young
• Elderly
• Sick
• Disabled
• 72% of UK households contain a vulnerable person
• To be used in European definition?
Fuel poor pensionersEngland 2006
Over 60 with children others
Over 60
Fuel poor households Pensioner households
19% in fuel poverty
50%
Identifying the fuel poor
Have low income AND poor home
• Social characteristics (eg age)
• Income level (benefit passbook)
• Energy efficiency of the home (audit)
Are never sufficient individually as proxies
Have to combine, preferably last two
Monitoring and doorstep = different
Fuel prices
• Rising long-term• Should the poorest people pay the
lowest price? • Avoid taxation (eg carbon taxes)• Avoid subsidies – no exit strategy• Reverse tariffs – cost goes up with level
of consumption• Market cannot deliver – regulation might
Fuel prices and cost of government policy – 2008/9
RO (UK)
CERT (GB)
EUETS (UK)
Total
Electricity customers
£11 £19 £31 £61
Gas customers
NA £19 NA £19
Total £80
COLD HOMES
WARM PLANET
Additional income x
Fuel price rise (CERT, FIT) x
Direct capital investment in energy efficiency
Policy choices, fuel poverty and climate change
Minimum housing standards
Transforming housing
Local authorities and Warm Zones
• All homes in the area• Funded by the utilities and government• Community approach
• www.warmzones.co.uk/about_us
• www.warmzones.co.uk/newcastle • www.kirklees.gov.uk/community/environment/grants• www.emra.gov.uk/what-we-do/housing-planning-transport/
success-stories/nottinghamshire/tackling-fuel-poverty
Low-carbon zones
• One per local authority
• Where fuel poor concentrated
• Ensure every home out of fuel poverty, in A- or B- rated property
• Do street-by-street
• CHP + waste / district heating schemes
Who pays?
• Substantial costs
• At no capital cost to the poor
• Cannot identify the fuel poor
• No need to subsidise the rich
• Through fuel prices?
• Through income tax?
• Property-owner’s responsibility?
Résumé
• Fuel poor are difficult to find• Need comprehensive policies on
incomes and housing• Area-based approach, all homes• Low carbon = super efficient + micro-
generation • Clear strategy with targets and
timescales
Thank youwww.eci.ox.ac.uk