Energy Saving: The UK Perspective and Addressing Issues of Fuel Poverty

1. Energy Saving: The UK Perspective and Addressing Issues of Fuel Poverty Keith Tovey Energy Science Director CRedProject Н.К.Тови М.А., д-р технических наук Факультет экологических исследований Университета Восточной Англии

2. Energy Saving: The UK Perspective • The Background to Energy Conservation • Why is it important? • Tariff Structure and issues of Fuel Poverty • Perception of Energy Conservation in the UK? • How is Energy Conservation promoted in the UK? • Conclusions

3. Energy Saving: Why is it important? • The UK has been self sufficient in energy • Under present trends the UK will be a substantive importer of natural gas and oil by 2020 • It makes sense to reduce energy demand and still remain competitive economically. • Reducing energy demand will also see a reduction in carbon dioxide - the main contributor to Global Warming • The Government has set targets and provided mechanisms to provide grants for individuals and industry. • However, more could be done.

4. The Background to Energy Conservation • In UK each person is consuming energy at a rate of • 5.1 kW • In USA it is 10.6 kW • 1/20th or World’s Population consumes 25% of all energy • In Europe it is 5.7 kW • In Russia it is also 5.7 kW • Globally it is around 2 kW • ENERGY Consumption > Carbon Dioxide > Global Warming

5. The Background to Energy Conservation ~ 5 kW per capita Consumption in Watts in UK • Transport Energy use has risen 10.5% in last decade • Domestic use has risen by over 10%

6. Energy Tariffs: The UK Perspective • Traditionally tariffs in UK composed of two parts: • A standing charge irrespective of level of consumption • A unit rate • This adversely affected low consumers. • Since Deregulation the majority of tariffs now have a break point tariff • No standing charge: • First N units at a relatively high rate • Remaining units at lower rate • Has less effect on low consumers. • Some companies have tariffs including both a standing charge and a break point tariff

7. Energy Tariffs: The UK Perspective Cheapest Tariffs < 1000 kWh C 1000 to 1500 D 1500 to 4500 B > 4500 A

8. The Role of the Regulator • OFGEM controls the prices charged by National Grid (Transco) • and the Distribution Companies • These are natural monopolies. • Transmission and distribution make up around 25-30 per cent of the • average domestic bill. • BUT • OFGEM also has a duty to ensure the companies can finance • investment needed to rewire Britain. • Rewiring is necessary with increased use of Renewables.

9. Consumer Protection • Energywatch: set up by the Utilities Act (2000). • Funded by Department of Trade and Industry • Funding comes from the licence fee paid by all energy • companies • It looks after consumers interests and deals with complaints • Energywatchis accountable to the DTI. • Energywatchis separate from OFGEM. • Two organisations work closely together. • Relationship with OFGEM is set out in a Memorandum of • Understanding.

10. Consumer Protection • Energywatch: • Some key projects currently underway by Energywatch: • Dealing with Rogue Traders who try to get people to switch • suppliers • Dealing with late and inaccurate bills • In 2002/2003 Energywatch had • 45,546 account, billing and other complaints (up from 37,075)* • 34,027 transfer complaints (up from 30,743)* • 12,960 direct selling complaints (up from 6,991)*

11. Metering • Specialist Metering Companies have entered market since 1998. • Siemens Energy Services is now the largest independent supplier of metering services. • It reads gas and electricity meters throughout the UK • Processes customer data and handles the payment of bills. • Siemens covers nearly 8 million households (around one-third) • It provides a metering service for • British Gas, • Powergen, • npower, • Scottish Power, • Scottish & Southern Energy.

12. Energy Tariffs: The Question of Fuel Poverty • Privatisation • Introduction of Pool • Deregulation • NETA / BETTA • Were designed to reduce charges to consumers and domestic consumers in particular • Would address the Government aim of reducing number of people classified as “Fuel Poor” • Deregulation had the greatest effect • Fuel prices have risen substantially in recent 2 years in response to rises in Whole sale Prices • In Real Terms – prices are now approximately back to pre – Deregulation Prices. • Government provide all pensioners with £200 heating allowance each year.

13. Energy Tariffs: Provision of Comparison Services

14. Energy Saving: The UK Perspective • The Background to Energy Conservation • Tariff Structure and issues of Fuel Poverty • Perception of Energy Conservation in the UK? • How is Energy Conservation promoted in the UK? • Conclusions • The Domestic Sector • An example from a large business

15. The Background to Energy Conservation How much Carbon Dioxide is each person emitting as a result of the energy they use? In UK 9 tonnes per annum. What does 9 tonnes look like? Equivalent of 5 Hot Air Balloons! To combat Global Warming we must reduce CO2 by 60% i.e. to 2 Hot Air Balloons How far does one have to drive to emit the same amount of CO2 as heating an old persons room for 1 hour? 3.2 km

16. Energy Saving: Awareness / Education / Advice A mobile phone charger left on ------ up to 25 kg CO2 a year Standby on television > 60 kg per year Filling up with petrol (~£30 for a full tank) --------- 90 kg of CO2 (5% of a balloon) A tumble dryer uses four times as much energy as the equivalent washing machine - use the dryer sparingly Boiling an extra cup full of water causes the emission of 25 cupfuls of carbon dioxide. • Understandable Language

17. Energy Saving:Perception of Energy Conservation in the UK? Domestic Consumers • some see Energy Conservation as a way to save money • less interested when they learn it may take many years to pay back • others see Energy Conservation as a moral and environmental issue and will strive to incorporate energy saving at an early stage • many over-estimate the size of their energy bills • several people see themselves as already being energy efficient. • PowerGen Energy Monitor (October 2004) • many are influenced by other factors • e.g. double glazing rather than cavity insulation! • Many are unaware of what grants are available

18. 3% Radiation Losses 61% Flue Losses GAS Generator Engine 36% Electricity Generation of Electricity with a Gas Engine 36%efficient

19. 3% Radiation Losses 11% Flue Losses GAS Exhaust Heat Exchanger Engine Generator 36% Electricity 45% Heat Combined Heat and Power at UEA Localised generation can make use of waste heat. Reduces conversion losses significantly 81%efficient Engine heat Exchanger

20. Energy Saving:Perception of Energy Conservation in the UK? Before Installation: Energy and Carbon Dioxide After Installation: Saving in CO2: 4824 tonnes or 31.9%

21. Energy Saving:Perception of Energy Conservation in the UK? Before the scheme Energy Bill > £1 000 000 per annum After scheme Annual Saving initially around £ 400 000 per annum However, the introduction of the New Electricity Trading Arrangements have had an impact out of balance issues for suppliers to whom exports were sold Government targets were to achieve 10 000 MW by 2010 However, number of schemes have declined slightly, and target will not be reached may be difficult to achieve 7500 MW

22. Energy Saving: The UK Perspective • The Background to Energy Conservation • Tariff Structure and issues of Fuel Poverty • Perception of Energy Conservation in the UK? • How is Energy Conservation promoted in the UK? • Conclusions • What grants are available • How is it financed?

23. Energy Saving: The UK Perspective • The Background to Energy Conservation • Perception of Energy Conservation in the UK? • How is Energy Conservation promoted in the UK? • Conclusions • What grants are available • How is it financed?

24. Energy Saving: Energy Conservation Grants Home Energy Conservation Act 1995 - HECA www.heca.co.uk Energy Saving Trust: Grants for Domestic Properties - also Transport www.est.org.uk Carbon Trust: Grants for Businesses www.thecarbontrust.co.uk

25. Energy Saving: HECA www.heca.co.uk

26. Energy Saving: Energy Saving Trust: www.est.org.uk

27. Energy Saving: Energy Saving Trust www.est.org.uk

28. Energy Saving: The Carbon Trust www.thecarbontrust.co.uk

29. Energy Saving: Energy Labelling

30. Solar Energy - The BroadSol Project Solar Collectors installed 27th January 2004 Annual Solar Gain 910 kWh Grants of £500 were available per installation

31. Energy Saving: Conclusions • UK has made some steps to reduce primary energy • More could be done • Achieved as a combinations of • Legislation • Energy Conservation GrantsEnergy Labelling • Promotion of Renewable Energy Schemes • Climatic Change Levy • Participation in EU (Carbon) Emissions Trading Scheme • Awareness / Education / Advice

32. Key Web Sites: Home Energy Conservation Act www.heca.co.uk Energy Saving Trust www.est.org.uk Carbon Trust www.thecarbontrust.co.uk National Energy Foundation www.natenergy.org.uk k.tovey@uea.ac.uk Н.К.Тови М.А., д-р технических наук Факультет экологических исследований Университета Восточной Англии Energy Science Director, Low Carbon Innovation Centre