Affordable Energy Strategy

1. Affordable Energy Strategy Dr Stjohn O’Connor Energy Efficiency & Affordability Division Department of Communications, Energy and Natural Resources, Ireland

2. Process • Inter-departmental Group on Affordable Energy • Appointed Indecon to assist in developing strategy • Consultation with interested parties/government departments • Published November 2011 • Rollout: 2012 onwards

3. Starting Point Retrofitting Thermal Performance Consumer Protection Income Supports Social tariffs Energy prices Income level

4. Focus on Energy Efficiency: co-benefits Reduced Emissions Reduced energy infrastructure costs Health Dividend Local employment Fewer energy subsidies Improved community appearance Higher property values Social Dividend Local spending

5. Findings: Extent of Energy Poverty: Expenditure Method • While the expenditure sharemethod is an arbitrary and, in many cases, unsatisfactory measure, it does give an indication of the level of household resources taken up in obtaining home heating and transport • It also helps to give an indication of potential vulnerability, especially in the event of an energy price rise.

6. Findings: Extent of Energy Poverty: Subjective Method

7. Findings: Energy Poverty Rates by Income Group

8. Findings: Energy Poverty Rates by Household Composition

9. Findings: Energy Poverty Rates by Accommodation Type

10. Findings: Key Risk Factors • Low income, particularly where a household falls within the lowest income decile (where 68.5% of households are energy-poor) or where the head of household falls within the ‘working poor’ group (51.1%) • Where a household is occupied by older people, and particularly if they are living alone (49.1%) or where the main breadwinner is widowed (50.5%) • Households renting their homes from a local authority (39%) • Households living in accommodation built prior to 1945

11. Implementation • Starting point: Income supports, efficiency measures and customer protections • Recognise the environment we operate in • Focus on what we can achieve (lots) • Requires a co-operative effort • Innovate

12. Income Supports • Weekly Payments (unemployment assistance) • Fuel allowance payments • Household Benefits Package (Free electricity or gas units) • Heating supplements under the SWA scheme (Assists people who have special heating needs e.g. disability, ill health or infirmity)

13. Thermal Efficiency Measures • Measures targeted at 3 areas: • Private housing • Social housing • Voluntary housing • Important to understand the housing stock/skills that are in the market • 2 million housing units • 1.6 million occupied and in private ownership • 130,000 social housing units • 25,000 voluntary housing units

14. Domestic Efficiency Measures Three strands: Private Housing; Social Housing and Voluntary Housing Private Housing (DCENR & SEAI) Delivered by community-based organisations and private contractors 80,388 homes have been upgraded since 2001 to date under the WHS Social Housing (DoEHLG) Delivered by local authorities and private contractors €47million spent on energy upgrades in 2009 and 2010 Voluntary Housing Covered by both DoEHLG and DCENR/SEAI

15. Domestic Efficiency Measures Other Initiatives Central heating scheme for social housing Housing adaptation grants for older people and people with disabilities 2010 building regulations Better Energy: Homes Energy saving targets for energy suppliers

16. Irish Energy Prices • Fully liberalised market • All-island energy market • High level of supplier switching amongst customers • Customer charters for energy suppliers • Disconnection policy • Dedicated information portal (www.energycustomers.ie)

17. Future Direction • Early action essential • Implement strategy (48 actions), which means: • 5 priority work packages • Area-based approach • Ensure greater access to energy efficiency measures • Reform eligibility measures • Review the National Fuel Scheme and Household Benefits Package

18. Thank you stjohn.oconnor@dcenr.gov.ie