Fuel poverty - making up for missed opportunities

1. Fuel poverty - making up for missed opportunities Jonathan Stearn Director Sustainability and Disadvantage Consumer Focus

2. Consumer Focus: who we are • Consumer champion - persuade businesses and public services to put consumers at the heart of what they do • England, Wales, Scotland, Northern Ireland (post only) • 2007 Consumers Estate Agents and Redress Act • energywatch, Postwatch and National Consumer Council • merged in Consumer Focus (CF) in Sept 2008 • 2012: consumer landscape review • 2013: CF Regulated Industries Unit (RIU) Work plan - Consumer vulnerability and fuel poverty • 2014: RIU (working title) transferred to Citizens Advice

3. Groups of vulnerable consumers? Consumer Focus must have regard to the interests of consumers that are one or more of the following — • (a)disabled or chronically sick individuals; • (b)individuals of pensionable age; • (c)individuals with low incomes; • (d)individuals residing in rural areas. Section 6 (4)

4. Consumer vulnerability rather than vulnerable consumers AS • Vulnerability can be long-term in effect or it can be a dynamic state – like unemployment, or bereavement IN REALITY • Society is not simply divided into `vulnerable groups’ and the rest • Vulnerability can be caused by external factors such as an organisations’ actions or the nature of certain markets

5. Consumer vulnerability and the market – what’s the link? Consumer Focus has defined consumers in vulnerable situations as: ‘People who cannot choose or access essential products and services which are suitable fortheir needs, or cannot do so withoutdisproportionate effort/cost/time.’ December 2012 • Tackling consumer vulnerability – an action plan for empowerment

6. Consumer vulnerability and fuel poverty –the market’s the link

7. Fuel poverty prices + energy efficiency = energy suppliers + regulator Solutions = energy suppliers/the market has major influence

8. Fuel poverty – is the market alone able to provide the solution in England?

9. Fuel poverty: who is responsible? • The UK government bears primary responsibility to end fuel poverty • And energy suppliers? They have rapidly acquired responsibility to collect the money from consumers and deliver the policies to tackle fuel poverty • But neither are really doing that well. With 6 million UK households in fuel poverty. The UK government is set to fail to meet the target of ending fuel poverty by 2016 • At last count energy companies had, on average, only delivered 46 per cent of the Carbon Emissions Reduction Target (CERT) for the super priority group.

10. Fuel poverty: local authorities England • Local authorities can take a key role in all three drivers of fuel poverty – • energy prices - collective switching, oil clubs • Income – living wages and benefit take up • energy efficiency • Research for Consumer Focus by Joanne Wade found 46 % of responding authorities gave fuel poverty a high priority. But only 20 had targets. • We found only 24 authorities in England took the lead in energy company programmes (CERT and Community Energy Saving Programme).

11. Fuel poverty: public health – driving action? • Despite what Wikipedia says public health is not just about hand washing, breast feeding and the distribution of condoms. It means recognising the link between cold homes and poor health • Investing in warm and energy efficient homes could provide cost benefits to the NHS. The Chief Medical Officer estimated that the NHS spends £859m each year treating cold related illnesses due to poorly insulated homes

12. Fuel poverty: glass half full • The government turned to local authorities to help with Warm Front in 2012/13. £50 million had been left in the Treasury coffers in 2012 • Despite the cuts in the energy efficiency programme the Energy Company Obligation in 2013 will have £350m available plus £190m in the Energy Carbon Savings Community Obligation (CSCo) – it needs local authorities to be involved.

13. Fuel poverty: civil society • The voluntary and community sector and the rest of civil society can play a key role. • Consumer Focus, Age Uk, Citizens Advice and NCB ran two campaigns that doubled Warm Front applications. • An example: • A grant from ScottishPower Energy People Trust, allowed Amaze to extend its work to include energy audits. It focused on helping parent/carers of children with special needs to identify how to make their homes more affordable to run and to help pull families out of fuel poverty.

14. Fuel poverty: Wales • There are initiatives [Nest, Arbed etc ] that highlight a Welsh approach that includes the involvement of the Welsh Government, local authorities, civil society with the energy suppliers + a recognition of the health impact of cold /damp homes • But we still need to get more funding to initiate a step change in the way we tackle fuel poverty. • Where could extra funds come from?

15. Delivering energy efficiency:Public spend • Scotland: integrate ECO & public funding • Wales & NI: also committed to public funding • But sadly still not enough funding in the UK to tackle the scale of fuel poverty

16. Where could extra funds come from?- Energy Bill Revolution • Recycle carbon tax: • Over next 15 years UK government will raise an average of £4 billion every year from Carbon Taxes • energy efficiency programme focused on fuel poor • ‘fuel poverty proof’ homes: ‘home built today’ standard • almost all of fuel poor removed from fuel poverty • www.energybillrevolution.org

17. Energy bill revolution supporters