1. Energy Justice – the policy challenges
What is the policy context and the issues we are grappling with?

2. Overview Fuel Poverty policy framework
Carbon reduction targets and policies
Implications of policies on consumer bills
Housing policy
Social and Environmental Impact assessments

3. NEA – what is our role in this agenda?
Mission – End to fuel poverty
Strategic Objectives
to facilitate access to, and understanding of energy efficiency and other solutions to fuel poverty;
to influence decision makers and provide solutions to fuel poverty

4. The conflict

5. Fuel Poverty Legislative Context
The Warm Homes and Energy Conservation Act 2000
The Warm Homes and Energy Conservation Act requires the Government to eradicate fuel poverty, as far as is reasonably practicable, by 2016.
HECA (under review) Fuel Poverty reporting
Regulated Consumer Protection under supplier licence conditions and incentives to stimulate innovation in tackling access to affordable energy
The Government commissioned a review of the fuel poverty definition and fuel poverty targets with interim report available.

6. Mitigating policies –current and proposed
Low household income
- Winter Fuel Payment and Cold Weather Payment
(Treasury funded)
High energy costs
- Warm Home Discount (Consumer –funded)
Poor standards of heating and insulation
- Warm Front, and Decent Homes (Treasury-funded)
The Carbon Emissions Reduction Target and the Community Energy Saving Programme replaced by Green Deal and ECO

7. Fuel Poverty in England
Number of fuel-poor households
Year
England
1996
5.1 million
2001
1.7 million
2003
1.2 million
2005
1.5 million
2007
2.8 million
2009
3.8 million
2011
5.1 million (?)

8. Carbon Reduction
Target to reduce greenhouse gas emissions by at least 34% by 2020.
Target to reduce greenhouse gas emissions by 50% by 2025.
A legally binding target to reduce greenhouse gas emissions by at least 80% by 2050.
Renewable Energy target 20% by 2020
EMR policy proposals

9. Implications for energy bills
Charges to consumers
Charges to consumers
Renewables Obligation
£12
EU Emissions Trading Scheme
£24
Carbon Emissions Reduction Target
£46 -
Community Energy Saving Programme £3
Energy Company Obligation
£80
Feed-in-Tariff
£6.50
Carbon reduction policies
£85
£122.50

10. How to reconcile tensions fairly
The Green Deal
Radical overhaul of housing stock
Market-based energy efficiency programme
Able-to-pay households
Heating and insulation measures
Finance up to £10,000
Must comply with the ‘Golden Rule’
Framed as a cost saving programme
But…not appropriate for low-income households

11. Will this be enough? ECO Intended to support low-income households
- funded through levy on domestic consumers
- uncertain budget (between £1 billion and £2 billion per year)
- split between carbon reduction and affordable warmth elements
- will fund expensive measures for able-to pay households
- intended to drive and develop solid wall insulation market
- details will be subject of intense political discussion - annually
- ECO should be devoted entirely to benefit of disadvantaged households

12. Fuel poverty in relation to energy efficiency standards
Energy efficiency and fuel poverty
% Households
Number of Households
SAP 2005
Fuel poor
Not fuel poor
% of fuel poor
Below SAP 20
63.9%
36.1%
422,000
239,000
10.6%
SAP 20-30
46.2%
53.8%
365,000
426,000
9.2%
SAP 30-40
29.3%
70.7%
616,000
1,485,000
15.5%
SAP 40-50
20.6%
79.4%
897,000
3,460,000
22.6%
SAP 50-65
14.8%
85.2%
1,321,000
8,896,000
33.3%
Above SAP 65
7.3%
92.7%
343,000
4,730,000
8.7%
Total
18.4%
81.6%
3,964,000
17,571,000
100.0%

13. Social and Environment Impact assessments
How impacts are measured
Wider considerations
Developing mitigating policies - governance
Long-term targets and investment decisions/short term political decisions

14. Policy Impacts – getting it right?

15. Or getting it wrong

16. Questions
Are we being honest enough about the tensions between achieving affordable energy and carbon reduction policies and are the tensions just about energy prices?
Can and should we rely on a light regulatory approach to energy generation and supply to achieve our social and environmental goals?
What are the least regressive policies to deliver carbon reduction and affordable warm and are they being embraced?