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Community Oil in the North-West November 20 th 2013

Community Oil in the North-West November 20 th 2013. Background. October 2012 – March 2013 The Project attempted to addresses all 3 causes of fuel poverty Cost of fuel - through brokering Level of Income - through benefit maximization and budgeting

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Community Oil in the North-West November 20 th 2013

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  1. Community Oil in the North-West November 20th 2013

  2. Background • October 2012 – March 2013 • The Project attempted to addresses all 3 causes of fuel poverty • Cost of fuel - through brokering • Level of Income - through benefit maximization and budgeting • Energy Efficiency – through advice in the home and referral to Bryson Energy Advice Freephone

  3. Partners • Bryson Energy, Consumer Council for NI, Fold Housing Association, NEA, Derry City Council, Derry Credit Union, NIHE (advisory) • Oil Federation suppliers who had signed the Consumer Council Customer Charter

  4. Objectives • To negotiate a reduction for all orders of heating oil • To negotiate smaller deliveries to tenants in fixed areas at no financial penalty • To reduce the need to budget by purchasing oil expensively in plastic containers • To encourage householders to utilise Credit Union accounts to save for oil/utility bills. • To encourage other Credit Unions in the North-West to use their combined strength to get reduced prices for all their members

  5. Why Oil ? • Unregulated - no transparency on pricing • 68% households in NI (Rural – 76%) • Bryson’s cost benefit analysis showed – successful implementation of oil brokering – could have a major impact on fuel poverty • Studies by University of Ulster had shown potential savings of 20-22% by bulk buying • Budgeting – a need to develop more flexible payment methods that address its high price and fluctuations

  6. Oil Price trends in NI 2009- 2013 Note: 900 litres of oil increased from less than £300 in 2009 to over £600 earlier this year i.e. doubled in price in four years. The latest Sutherland Tables (Oct 1013) estimate that the cost of heating an average 3 bedroom house is approx £1,600 per annum – approx 3 fills of oil. (£1,300 with condensing boiler).

  7. Derry this week….. • 200 litres of heating oil in Derry costs 61p per litre compared to 55ppl i.e. 6ppl cheaper when you buy 900 litres in bulk • £54 extra to buy 900 litres in smaller lots or approx £162 per year for a fuel poor family (3 fills per year) just to budget • Householders are also being charged up to £10 extra for using their credit card. • Plastic containers – even more expensive and dangerous means of budgeting – but supplier has no delivery costs.

  8. Bryson Energy Project • Press Release - Sept 2012 • Oil federation suppliers invited to take part – i.e. those who signed the Consumer Council Customer Charter • Two approaches – 1) For Fold residents leafleted selected areas – residents enrol for project • Bryson collected contact details (preferably text), fuel usage, typical size of oil order, normal method of payment and (whether or not they were Credit Union members) • 2) For Credit Union – referral system using CU web-site, facebook and big screens

  9. Bryson Energy Project • Fold residents notified of call for oil • Notified oil needs to Bryson • Bryson request prices for bulk load from local suppliers • Suppliers supply best price by given date and valid period of offer • Preferred supplier selected for that week • Fold residents and Credit Union notified immediately of cheapest supplier and confirmed price per litre and the time limit

  10. Additional benefits • Free and independent energy advice and information 0800 14 22 865 • Referral to any relevant energy efficiency grants / incentives e.g. homeowners • Benefits assessments to maximise incomes.

  11. Issues • Trading Standards Service – minimum legal load = 500 litres • Price based on bulk order – cancellations can affect price • VAT for domestic customers – 5% < 2,300 litres • Local jobs - Oil Federation members and customer charter - small local suppliers may not be signed up • Price contract between resident and oil supplier • Quality assurance – check deliveries accuracy

  12. Findings • Big interest raised across NI in oil schemes – interest by media, Councils, fuel poverty/community groups • Possible to broker savings • Same price per litre for 500L as 900L – achievable • Identified real need for cheap budgeting methods for fuel poor as brokered price is not enough on its own • Credit Union initiatives need broadened and developed as CU has cheapest loans • Not everyone is a Credit Union member

  13. Savings • Between 2.2p – 7p per litre against our Consumer Council benchmark • Average of 3p per litre less than the preferred supplier’s own advertised local price • Average savings of £11 - £35 on 500 litre order or £66 - £210 for average family (3,000 litres) per annum. • Plastic container price can be 10ppl + in excess of bulk price - £300 extra per annum

  14. Challenges • Trading Standards 500L rule hampered uptake • Fuel poor householders unable to buy 500 litres @£300 • When removed - we received more orders • Large oil suppliers refused to co-operate • Non federation members – more quotations • Fuel poor are paying dearly for the privilege of budgeting for oil – credit card fees, loyalty schemes, Paypoint, oil drums, etc.

  15. Objectives going forward… • To develop an integrated system to support people in not only getting a fair price for fuel but also in getting a fair price in budgeting for their fuel. • To persuade the Credit Union movement to promote low cost loan options specifically for the payment of fuel bills.

  16. Belfast Pilot - ongoing • To assist 300 households (particularly fuel poor) to buy oil at a reduced price • Two locations - Ardoyne in North Belfast and Cregagh in East Belfast) • Officially launched on International Credit Union day 17th October 2013 • Partnership with local community groups, political parties, local businesses, credit unions, housing providers etc. • Average Savings – Month ONE – 4.95p per litre

  17. Thank you Laurence Arbuckle Senior Manager larbuckle@brysonenergy.org

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