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Time To Reconsider UK Fuel And Energy Policies?
27th October 2011
A publication released today by national fuel poverty charity NEA (National Energy Action) considers the implications of current and emerging energy policies for social justice in our society, and suggests it is time to reconsider UK energy strategy if we are to make sure that policies to tackle climate change don't impact unfairly on low-income households.
The publication is a Viewpoint paper funded under the Joseph Rowntree Foundation's (JRF) Climate Change and Social Justice programme.
Unprecedented increases in energy prices over recent years mean that more than six million UK households are currently in fuel poverty, unable to afford the energy required to achieve a warm and healthy home. The Energy Act 2011 will introduce the Green Deal and Energy Company Obligation (ECO) which are intended to ensure radical improvements in how domestic energy efficiency measures are financed and delivered. Moving to a low carbon society will have obvious environmental benefits, but concerns remain over whether this objective can co-exist with the socially just approach required to protect low-income consumers from higher energy bills. The Government asserts that the cost impact of climate change policies will be outweighed by the introduction of energy efficiency programmes; however, it is unclear what mechanism could help ensure that financially disadvantaged households are able to benefit from existing and proposed programmes to improve energy efficiency and mitigate any potentially negative impacts.
Helen Stockton from NEA said, 'While there are compelling arguments for carbon emission reduction programmes, there is also real concern over the potential detriment to low-income and vulnerable consumers as a result of these initiatives being funded by levies on domestic energy bills. It is intrinsically unfair that low-income consumers will pay the same levies as more affluent households - currently around £88 per year and predicted to rise to £120 by 2020 - while their access to the potential benefits is limited. Mitigating the impact on financially disadvantaged households while ensuring equal access to the benefits of energy efficiency policies should be a key element of the transition to a low-carbon economy and society.'
The paper concludes that a socially just energy policy must prioritise the allocation of resources to provide no-cost energy efficiency interventions to enable fuel-poor households to reduce their energy use and achieve a warm and healthy living environment at an affordable cost. This must be a precondition of any future levy-funded environmental measures.
Also published today, and funded under JRF's Climate Change and Social Justice programme, is a complementary paper by University College London (UCL) and the Institute for Public Policy Research (IPPR) entitled 'Tackling fuel poverty during the transition to a low-carbon economy'. The paper also examines access to affordable warmth as the UK moves towards becoming a low carbon society and how universal access to warmth can potentially be achieved.
