1. Current debates regarding energy poverty in France
Ute Dubois
ISG Business School, Paris
Energy Action European Conference
Dublin, March 29, 2018

2. Introduction
Energy poverty in France  publicly recognised, defined (2010) & addressed through various policy measures
Recent debates & policy evolutions: about the delivery of measures
Social tariffs for electricity & gas  replaced by an energy cheque (2018)
Thermal renovations  actual figures remain
What possible “game changers”?
Massification and the simplification of delivery
Improving knowledge & raising awareness
about the benefits of EP alleviation

3. Outline of the presentation
Energy poverty in France: what do we know?
Quantifying & qualifying EP
Main policy tools
Financial support to low-income households: the launch of the “energy cheque” in 2018
The debate about the “massification” of thermal renovations
Health as an emerging issue?

4. 1. Energy poverty in France: what do we know?

5. EP in France: what are we talking about?
Energy precariousness started being debated in 2005
Official definition of 2010 is vague
Data sources for EP measurement
National housing surveys (every 5-7 years, the last one in , over homes in metropolitan France)  but limited data on EP
PHEBUS survey (realised once in 2013, households)  focus on energy performances of homes
Several methods have been tested to quantify the problem
10 percent of actual expenses (different from UK approach)
Cold homes (subjective, during 24 hrs)
LIHC
transformed into Low-income-high expenses ie. based on actual expenses
Per square meter of home
Different from England & Hills
Consequence: people living in smaller homes and large families are more represented
Inclusion of transport (2015)
Modelling energy needs (planned)

6. Evolution of EP Households Evolution of EP people 2006-2013
Energy poverty measurements in France: the housing survey of (ONPE, 2016)
Indicator
% of Households
Number of Households
Number of people
Persons per Household
Evolution of EP Households
Evolution of EP people
Energy expenses indicator (10%)
10.4%
2.8 M
5.5 M
1.94
27%
38%
Low Income High Expenses per sq. meter
13.9%
3.8 M
8.5M
2.25
19%
15%
Low Income High Expenses per cons. Unit
10.3%
5.1 M
1.81 8% 2%
Cold home (at least 24 hrs) 6%
1.6 M
4.1 M
2.51
14%
17%
All data for the three first income deciles
Source: ONPE (2016), on the basis of the national housing survey of

7. Types of energy poverty related difficulties
Estimation of the total number of EP households: 5,6 millions of households (the ”envelope ”, which includes all situations below + low-income high expenses per consumption unit, i.e. 0.3 million)
The “core”: 1 million households (Cold home + at least one other form of EP)
0.6 M
Energy expenses indicator (10%), three first income deciles: 2.8 M
0.6 M
1.4 M
Low Income High Expenses per consumption unit (three first income deciles) not included in LIHE per sqm
0.1 M
+0.3 M
0.5 M
Cold home (at least 24 hrs)
three first income deciles: 1.6 M
0.9 M
0.4 M
Low Income High Expenses per sq meter three first income deciles: 3.8 M
Source: ONPE (November 2016), on the basis of the national housing survey of 2013

8. EP measurements in France: the PHEBUS survey of 2013 (source: Belaid, 2018)
Estimation of energy poverty
Method: LIHC per m² for the income deciles D1-D3
12.1 % of French households are energy poor (3.18 million households)
“fuel poverty gap” = 672 € on average
Source: Belaid (2018) “Exposure and risk to fuel poverty in France: examining the extent of the fuel precariousness and its salient determinants”, Energy Policy
Profiles of energy poor households (clusters)
foreign family, employed, living in collective housing, collective heating (24% of sample)
single person, retired, tenant, living in collective housing, small flat (23% of sample)
family in individual housing, individual central heating, gas (32% of sample)
homeowner in individual housing, large size of home, rural area, oil heating (21% of sample)

9. Levers for energy poverty alleviation
Resources
 Financial assistance for low-income households, for households with payment difficulties, targeted measures for certain types of households
Energy supply conditions
Protecting vulnerable consumers against disconnection, reducing or subsidising energy bills, enabling choice of suppliers and payment methods…
Energy efficiency
 Thermal renovation programmes, replacement of boilers & heating equipment, small appliances & fixing problems, information provision

10. Levers for energy poverty alleviation€
Levers for energy poverty alleviation
Energy poverty alleviation
Resources
 Financial assistance for low-income households, for households with payment difficulties, targeted measures for certain types of households
Energy supply conditions
Protecting vulnerable consumers against disconnection, reducing or subsidising energy bills, enabling choice of suppliers and payment methods…
Energy efficiency
 Thermal renovation programmes, replacement of boilers & heating equipment, small appliances & fixing problems, information provision
No disconnection in winter
Social tariffs ( )
Special tariffs for technical interventions
Energy suppliers’ Solidarity Departments

11. Levers for energy poverty alleviation€
Energy poverty alleviation
Resources
 Financial assistance for low-income households, for households with payment difficulties, targeted measures for certain types of households
Energy supply conditions
Protecting vulnerable consumers against disconnection, reducing or subsidising energy bills, enabling choice of suppliers and payment methods…
Energy efficiency
 Thermal renovation programmes, replacement of boilers & heating equipment, small appliances & fixing problems, information provision
Energy Cheque (2018)
Social funds for housing (FSL)
Local energy subsidies

12. Levers for energy poverty alleviation
Resources
 Financial assistance for low-income households, for households with payment difficulties, targeted measures for certain types of households
Energy supply conditions
Protecting vulnerable consumers against disconnection, reducing or subsidising energy bills, enabling choice of suppliers and payment methods…
Energy efficiency
 Thermal renovation programmes, replacement of boilers & heating equipment, small appliances & fixing problems, information provision
Habiter Mieux (2011)
Tax credits, zero interest loans
Advice & small appliances

13. 2. Financial support to low-income households: the launch of the “Energy Cheque” in 2018

14. Why replace the previous social tariffs for electricity & gas?
Much progress has been made over time to increase the number of beneficiaries
First reducing the complexity of procedures to benefit
Then attributing them automatically
However there was a remaining complexity regarding delivery
Injustice: amount of support dependent on
Having an electricity or gas contract
Type of energy used (advantage for natural gas customers)
Crossing databases (low-income households & energy customers) causing “losses” of beneficiaries
End 2017: 3.1 million beneficiaries for electricity (vs. 4 million potential beneficiaries)

15. The energy cheque Launched in March 2018
Replaces social tariffs for electricity & gas
Allows payment of energy bills
All types of energy bills
And / or works of improvement of environmental quality of homes or energy saving measures
48 € € per year (average = 150 €), depending on
Household composition
Income per consumption unit (income threshold = 7,700 € per consumption unit)
Financing
A contribution paid by electricity and gas consumers through their bills
The state budget

16. Energy cheque: first lessons from four Departments
(+) more beneficiaries
(+) consumers with all types of heating energy
(+) amount of subsidy is clear
(+) flexible use
(?) learning how to use cheque
(?) uptake (78%)
(-) level of subsidy still insufficient
Households
Management of the system
(+) attribution criteria easier than for social tariffs
(+) better coverage for people with lowest incomes
(?) electricity & gas suppliers do not automatically know the beneficiaries  potential impact on customer protections
(?) management costs 16

17. 3. The debate about the “massification” of thermal renovations

18. Why is “massification” an issue?
7.5 million homes considered as highly energy inefficient (1.5 million owned by low-income households)
250,000 renovations realised through the main French renovation programme Habiter Mieux between 2011 and 2017
Renovation objectives of the Energy Transition Law of 2015:
500,000 homes per year from 2017 on
Out of which (each year) 250,000 homes of low-income households to reduce energy poverty by 15% until 2020
Goal: renovate 150,000 highly inefficient homes per year from 2018 on (source: Plan Bâtiment Durable 2018).
The problem: implementing renovations at a large scale appears more difficult than initially expected

19. install inside hour home”
The central tool to realise this goal: the thermal renovation programme Habiter Mieux (“Living Better”)
Initially: Comprehensive renovations of homes of low incomes households
Renovation measures financed through
A dedicated thermal renovation fund
Plus classical funds from National Habitat Agency ANAH
Plus energy suppliers’ contributions (white certificates)
Specialised operators assist households on technical and financial engineering aspects over the whole duration of the project
Initial goal 300,000 homes (2011 – 2017), 250,000 realised
From 2018 on: goal of 75,000 / year.
“Do not let the cold
install inside hour home”
(ANAH communication campaign)

20. Delivery problems leading to evolutions of Habiter Mieux
Enlargement of the programme to new beneficiaries: Income thresholds increased; Landlords; Homeowners in multi-family and multi-owner buildings
New offer for low-income homeowners  partial renovation works + simplified procedures
Launch of “Habiter Mieux”  homeowners living in single family homes, comprehensive renovation
New collective offer for fragile buildings with multiple owners (whole building renovation)
2011
2013
2017
2018

21. Additional tools to create incentives to renovate for both households and suppliers
Complementary financing for Habiter Mieux renovations
Until 2018: zero-interest loan (Eco-PTZ) – up to 30000€ for 10 years
Microcredit (maximum amount: between and € for 8 to 10 years) at zero interest
Tax credits for renovations (CITE = Crédit d’Impôt Transition Energétique)
15% to 30% of expenses, depending on type of work
A special “Energy Poverty” obligation added to the white certificates system
150 TWh cumac for energy poverty in
Adds to 700 TWhc energy saving obligations for
For : total obligation of 1600 TWhc (including 400 TWhc for the energy poor)

22. Areas of improvement: how to achieve massification?
Finance partial renovations
Encourage self-renovation
Go beyond energy efficiency and promote aspects like comfort, well being, health, value of buildings ?
Foster the development of simple and easily reproducible solutions by private operators
Developing renovation offers addressing specifically buyers of homes & involving real estate agents  timing matters
Keep mechanisms stable

23. 4. Health as an emerging issue?

24. The difficulty of lacking recognition of energy poverty-health relations in France
Practitioners’ knowledge
Know that there are health difficulties associated with EP
but often view health & energy efficiency as isolated from each other
Health practitioners: hard to demonstrate causal relations
Research
Limited data available
Measuring impacts can be a complex exercise
Policy approaches
Lacking awareness of EP-health relations and of health benefits of EP alleviation
Policy fragmentation

25. EP-health relations in research
Analysis of statistical data  correlation between energy poverty & health and wellbeing indicators
Two ad-hoc studies on smaller samples of low-income households
Energy poverty increases the probability of occurrence of
(1) self-reported health,
(2) long-standing illness and
(3) mental health
Source: Chaton & Lacroix (2014), Jusot & Lacroix (2014)
Housing conditions & health:
Sample: 352 households (energy poor & non energy poor)
health difficulties: chronic illness, acute health problems
Impact of mould on chronic respiratory disease
Energy poor people more exposed to winter pathologies
Impact of thermal renovation on the consumption of health services:
Sample: 210 households in the South of France
25% consider that their health has improved after thermal renovations
In particular the low-income people
Self-reported medical consumption has decreased (frequency of seeing a doctor)
Less treatments for mental health problems
Source: Ledésert (2013) and (2016)

26. Practitioners’ knowledge
Policy approaches
Practitioners’ knowledge
Legislation on unhealthy buildings (insalubrité) and on the decency of homes
Criteria for classifying a home as unhealthy are very restrictive
Attempt to include energy efficiency of homes in decency criteria  not operational
Certain local initiatives of municipalities
In combination with other difficulties like saturnism
Information campaigns
Detection of mould problems
Medical advisors specialised in indoor environment
Initiatives where households identified as energy poor benefit from diagnoses by specialised medical advisors
Results of a local experiment with 30 households
Humidity in all cases
90 % have little or no insulation
Two third have cold at home
One third use a secondary heater
Renovations recommended in 20 cases, often people need to move to a different place
At a “macro” level,
no recognition of impact of housing characteristics on human health (ex. Heat waves)
At a “micro” level,
it is still hard to obtain proofs/certificates on the links between housing and poor health

27. Concluding remarks
France has made considerable progress in the past years in
Refining policy tools to address EP
Raising awareness on the problem among stakeholders
Identifying energy poor households
However, significant obstacles remain regarding
Implementation of massive thermal retrofits
Recognition of the multiple benefits of EP alleviation
Need for
Innovative approaches to foster delivery of retrofits
Linking policy fields (housing / energy efficiency / social / health)

28. Current debates regarding energy poverty in France
Ute Dubois
ISG Business School, Paris
Energy Action European Conference
Dublin, March 29, 2018