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Introduction to Energy Poverty Brussels 29.11.11 Brenda Boardman Emeritus Fellow ECI

Introduction to Energy Poverty Brussels 29.11.11 Brenda Boardman Emeritus Fellow ECI University of Oxford. UK definition. A household is in fuel poverty if it needs to spend more than 10% of its income on fuel to maintain adequate energy services Fuel poverty = energy poverty

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Introduction to Energy Poverty Brussels 29.11.11 Brenda Boardman Emeritus Fellow ECI

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  1. Introduction to Energy Poverty Brussels 29.11.11 Brenda Boardman Emeritus Fellow ECI University of Oxford

  2. UK definition • A household is in fuel poverty if it needs to spend more than 10% of its income on fuel to maintain adequate energy services • Fuel poverty = energy poverty • Energy efficiency = the cost of achieving energy services, in UK

  3. Possible European definition • A household is in fuel poverty if it needs to spend more than twice the median (as a proportion of income) on energy • Median, all households = 6% • Fuel poverty = 12% • Treatment of housing costs and family size affect who is defined as fuel poor

  4. Affordable warmth } { 10% of income for all energy services Energy efficiency of the dwelling 24 hour mean internal temperature of 18°C (+ other energy services)

  5. Income + housing Low income High income Energy inefficient housing Energy efficient housing

  6. Fuel poverty by income, UK 2009 DECC Fuel Poverty Statistics, 2011, p29

  7. Characteristics • Low income • No savings • Energy-inefficient homes • Small households • A lot of elderly people

  8. Who are the vulnerable? • Young • Elderly • Sick • Disabled • 72% of UK households contain a vulnerable person • To be used in European definition?

  9. Fuel poor pensionersEngland 2006 Pensioner households Fuel poor households 50% 19% in fuel poverty

  10. Identifying the fuel poor Have low income AND poor home • Social characteristics (eg age) • Income level (benefit passbook) • Energy efficiency of the home (audit) Are never sufficient individually as proxies Have to combine, preferably last two Monitoring and doorstep = different

  11. Fuel prices • Rising long-term • Should the poorest people pay the lowest price? • Avoid taxation (eg carbon taxes) • Avoid subsidies – no exit strategy • Reverse tariffs – cost goes up with level of consumption • Market cannot deliver – regulation might

  12. Fuel prices and cost of government policy – 2008/9

  13. Policy choices, fuel poverty and climate change

  14. Minimum housing standards

  15. Transforming housing

  16. Local authorities and Warm Zones • All homes in the area • Funded by the utilities and government • Community approach • www.warmzones.co.uk/about_us • www.warmzones.co.uk/newcastle • www.kirklees.gov.uk/community/environment/grants • www.emra.gov.uk/what-we-do/housing-planning-transport/success-stories/nottinghamshire/tackling-fuel-poverty

  17. Low-carbon zones • One per local authority • Where fuel poor concentrated • Ensure every home out of fuel poverty, in A- or B- rated property • Do street-by-street • CHP + waste / district heating schemes

  18. Who pays? • Substantial costs • At no capital cost to the poor • Cannot identify the fuel poor • No need to subsidise the rich • Through fuel prices? • Through income tax? • Property-owner’s responsibility?

  19. Résumé • Fuel poor are difficult to find • Need comprehensive policies on incomes and housing • Area-based approach, all homes • Low carbon = super efficient + micro-generation • Clear strategy with targets and timescales

  20. Thank youwww.eci.ox.ac.uk

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