Supplementary memorandum submitted by
the Fuel Poverty Advisory Group (FP 12A)
Thank you for the opportunity last Wednesday
10 March to share my thoughts regarding fuel poverty. You
asked me to send through clarity on any of the points I mentioned
and, hence, this letter.
I was asked "What are the most important
features of the Government's new Household Energy Management strategy?"
— Rented accommodation & regulation:
Of the fuel poor households 17% are Privately Rented and 17% Socially
Rented (Government statistics 2007). It is essential that we make
thermal efficiency progress in these sectors and particularly
so for the private sector
— District heating: Significant potential
remains. Consideration should also be given to the planning requirements
of new commercial developments that exhaust heat through cooling
and freezing applications. Typically 1 kWh of electricity
used in cooling will waste 3 kWh of heat. Can this be harnessed
for district heating? There is also the opportunity for demand
side management in the new renewable energy mix for marginal cost
energy to be stored in the form of electric resistive storage
heating. This needs to be explored and is not on any of the participant's
"radar".
— Partnerships with energy companies: This
is an essential way forward.
— Pay as you save legislation: Further
analysis of future energy prices is required to underpin the pay
as you save propositions.
— Accreditation: A properly governed scheme
is essential in order to give consumers confidence.
— Fuel Poor Households: Many fuel poor
households under heat. These households will, therefore, require
free measures. I reiterate the concept of a fair trade type tariff
tied to, say, a reference point in the online energy market. It
would not be cheapest. In exchange for a long term deal with a
supplier, the funding for the measures could be derived from the
social price support proposals as an interest payment for the
capital cost. Ultimate payment could be when the property is sold—66%
of Fuel poor households are owner occupied (Government statistics
2007).
March 2010
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