North West Fuel Poverty Forum

FUEL POVERTY FORUM 23rd June 2014 - Bolton

Diane Bland NEA Project Development Co-ordinator

NATIONAL ENERGY ACTION

A G E N D A

09.30 Registration and refreshments

10:00 Welcome, NEA Policy Update Diane Bland Project Development

Co-ordinator NEA

10.30 Impact of Solar PV on Fuel Poverty Tessa Clark

Findings from a study with Social Researcher Landlords and their tenants Changeworks

11.00 Let us switch – Liam Purcell

How prepayment meters trap people in Communications and fuel poverty Support Liaison

Manager Church Action on

Poverty

11:30 Comfort Break

11.45 Finding the Fuel Poor Bill Wilkinson Research to develop a door-step Director assessment tool to identify those Energy Audit Company

likely to be in fuel poverty. DECC Fuel Poverty Methodology Group

12:15 Open Forum + Information Sharing ALL

12:30 Close and Networking Lunch

Fuel Poverty Statistics Using the LIHC definition

• 2.28 million fuel poor households in England – 5% decrease from 2011, with the depth of fuel poverty also showing a

slight decrease

• DECC projections for 2014 – show an upward trend with fuel poverty likely to affect 2.33 million

households in England

– average fuel poverty gap also projected to increase from £443 in 2012 to £480 in 2014

• Poorest continue to live in the worst homes – with the depth and likelihood of being fuel poor increasing markedly

with lower levels of energy efficiency

– 35% of households living in the least efficient properties

live in fuel poverty

– compared to only 2% in the most efficient properties.

DECC’s 2014 annual statistics on fuel poverty (2012 data) can be found at: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/319280/Fuel_Poverty_Report_Final.pdf

Fuel poverty sub-regional statistics can be found at https://www.gov.uk/government/collections/fuel-poverty-sub-regional-statistics

Fuel Poverty Statistics

Delivered mixed news on domestic energy efficiency • Infrastructure Bill - zero carbon standard for new homes • Significant scaling back of the original intention that all new

homes built from 2016 onwards would be zero carbon AS • Developers who don’t meet the zero carbon threshold would

have to contribute to a fund which could be used to support domestic retrofit

The Queen’s Speech

Domestic Renewable Heat Incentive (RHI) Goes Live….

• Launched 9th April 2014

• Pays participants of the scheme that generate and use renewable energy to heat their buildings

• Open to homeowners, private landlords, social landlords and self-builders

RHI Goes Live….

• NEA campaigning to ring-fence part of the domestic RHI budget to provide upfront capital support and assistance

with maintenance costs for low income households • Without the upfront capital support fuel poor households

cannot take advantage of this initiative

• With support they would not only benefit from reduced fuel bills but would also receive payment for every unit of heat generated

• Also need capital for home insulation

….. but leaves fuel poor out in the cold

• Department of Energy and Climate Change (DECC) consultation on ECO closed 16th April

• Key proposed changes included: • Extension of the scheme to 2017

• Modifying the eligibility criteria for Carbon

Saving Communities Obligation CSCO

• Allowable primary measures under Carbon Saving Communities Obligation CERO

Proposed Changes to ECO

• CERO target should not be reduced by 33%

• Reduce ‘cherry-picking’ for greatest savings by using deemed scoring (per measure/per property)

• Introduction of ‘mandated’ referrals with guaranteed assistance for specified householders

• HHCRO eligible not asked for contribution that are variable and not subject to monitoring

• Min. energy efficiency standards • target of EPC band B by 2030 for all low

income homes (supported by interim targets)

NEA’s priority areas for Govt to address

‘Ending Cold Homes: Modelling the cost and impact of introducing ambitious new fuel poverty targets’ Association of Conservation of Energy (ACE) published research March 2014

The impact of meeting the targets on fuel poverty The impact of meeting the targets on occupants’ fuel bills The total cost and average cost per household of meeting the

three targets. Consider low income households, unlike better off households, cannot be expected to meet these costs themselves.

The characteristics of the housing stock occupied by low income households which would be targeted for help.

http://www.consumerfutures.org.uk/files/2014/03/Ending-cold-homes.pdf

Cost of min. energy efficiency targets

The Monitor is a report, produced by NEA, which summarises and assesses the activity being undertaken at UK and national level to address fuel poverty. The report particularly focuses on the different approaches the Westminster and the devolved governments are taking to tackle the root cause of this issue: an energy inefficient housing stock.

UK Fuel Poverty Monitor 2013-2014

• UK-wide and national-level findings on the scale and causes of fuel poverty

• The report finds that there is a lack of coordination across the nations

• Scotland and Wales are leading other countries on providing government-funded, area-based and whole-house approaches to energy efficiency

• England continues to provide no recurrent funding and lacks a binding duty for local authorities to address environmental and social objectives through housing

• Notes the GB wide impact of the proposed changes to ECO

Findings

1. UK Government should massively expand resources for energy efficiency, but especially for low-income households living in the worst properties and most deprived areas

2. UK Government must recognise the impact that energy policy set in Westminster has on the whole of GB and must quantify the impacts on fuel poverty across the respective nations before making significant policy decisions

3. HM Treasury must not directly benefit from any schemes that effectively increase the cost of energy

4. There is a need for greater and more transparent coordination across the Westminster and devolved governments on all consumer energy issues

Recommendations

http://www.nea.org.uk/policy-and-research/publications/2014/monitor-2014

UK Fuel Poverty Monitor 2013-2014

Green Deal Home Improvement Fund

‘GDHIF’ Launched 9th June 2014 Operates in England & Wales A ‘flexible’ and ‘modular’ scheme for homeowners, landlords and tenants Includes measures such as solid wall insulation and new heating systems Up to £7,600 cashback Further info: https://www.gov.uk/government/news/7600-to-make-your-home-more-energy-efficient

Green Deal Home Improvement Fund In Dec 2013 Government announced a £540million package to make Britain’s homes and public buildings more energy efficient

New funding to improve around 15,000 of the least energy efficient rental properties each year, for 3 years

7th May 2014 Secretary of State released further information.

NEA welcomes the introduction of any recurrent funding for domestic energy efficiency however, the statement • does not specifically prioritise the needs of low income

tenants in the private rented sector • failed to provide much needed clarity that landlords

will continue to have overall responsibility for ensuring their properties are fit for habitation and not perilous

NICE Consultation

On 13th June 2014 the National Institute for Health and Care Excellence (NICE) issued a consultation on their draft guidance on how healthcare professionals must take action on cold homes

NICE recommendations include:

• Providing a one-stop local health and housing referral service for people living in cold homes which offers access to grants for housing insulation and heating

• Identifying people at risk of ill health from living in a cold home.

cont…….

NICE Consultation

• Ensuring vulnerable hospital patients are not discharged to a cold home by turning on the heating before they get home or providing advice on how to use the heating system

• Training heating engineers, meter installers and those providing building insulation to help vulnerable people at home with sensitivity

Consultation responses by 25 July 2014.

For further info visit: http://www.nice.org.uk/nicemedia/live/13899/68006/68006.pdf

• Within NEA’s response to Ofgem’s consultation on the Distribution Network Operators (DNOs) re-submitted business plans: • NEA considers DNOs can (and must) play a key role in

incentivising permanent electricity demand reductions on their networks

• Will not only help to avoid unnecessary load related network reinforcement but will also have a direct positive social outcome

• NEA recommends DNO support for large scale heating system replacements, lighting improvements and insulation programmes

• NEA underlines that this activity must be central to the new distribution price control (ED1) starting in 2015.

Electricity Demand Reductions

THE FUTURE FOR FUEL POVERTY – helping to shape fuel poverty policy and practice

Forum Workshop

Workshops supported by which were held at NEA Fuel Poverty Forums across England aimed to help DECC better understand the opinions of fuel poverty practitioners with regard to the practical delivery of fuel poverty initiatives

326 fuel poverty/energy efficiency professionals attended the workshops from a wide range of organisations

Outputs presented in a report to DECC which helped shape the questioning for the fuel poverty strategy consultation (England only) expected July.

Forum Workshop

Workshop participants were asked to respond to a series of questions in relation to: • Barriers to targeting

• Community action

• Potential for greater joint delivery of health and fuel

poverty services

Forum Workshop

• The most common barrier to targeting was the range of issues surrounding data sharing with DWP, the health sector, other Governmental departments and energy companies.

• Many ways in which community action can support the fuel poor. A wide range of activities, most with a very local theme, supported and guided by local authorities but needed increased resources, training, products and services designed with the fuel poor in mind.

• Barriers to joint delivery of health & fuel poverty services were led by a lack of cross-sector working at a

strategic level followed by a need for rigorous performance indicators at an operational level

Scale of Fuel Debt Ofgem - Domestic suppliers' Social Obligations Report

Total in Debt Q4 - 2012 Q1 - 2013 Q2 - 2013

Electricity 1,358,764 1,477,765

1,555,968

Gas 1,194,853 1,292,776 1,448,577

April - June 2013 Total number of PPM’s installed

To recover debt Requested by customer

Electricity 72,209 57,978 14,231

Gas 75,229 60,839 14,390

Scale of Fuel Debt

Q2 2013 (April – June)

• 1.6 million domestic electricity accounts (5.8 per cent) and 1.5

million domestic gas accounts (6.5 per cent) were in debt.

• Average levels of electricity and gas debt outstanding were £316 and £341 respectively, up four per cent and nine per cent from the end of 2012.

DVD produced by NEA funded by npower Health Through Warmth

Interactive multi-language energy advice resource

Selectable commentary in English, Polish, Punjabi, Urdu, Bengali, Gujarati, Welsh, Arabic, French, Cantonese, Kurdish, Romanian and Bulgarian

A copyright free resource - copy the DVD for local use and distribution

NEA has a limited supply of the DVD. To place an order for a FREE copy contact Tracy Norris at NEA on 0191 269 2946 or tracy.norris@nea.org.uk

THE HEAT IS ON

Turning the Tide’ will explore the many issues that impact on fuel poverty alleviation with the wide range of players involved in the design and delivery of policy and practical programmes. To book, visit http://www.nea.org.uk/campaigns-events/annual-conference-2014

Useful reports and publications Report on Families at risk of Fuel Poverty http://www.energybillrevolution.org/wp-content/uploads/2014/01/ACE-and-EBR-fact-file-2014-02-Fuel-Poverty-update-20141.pdf Children’s Society (January 2014) ‘Behind cold doors: the chilling reality of children in poverty’ http://www.childrenssociety.org.uk/sites/default/files/tcs/behind_cold_doors_-_final.pdf Snell et al (Uni of York) – Fuel poverty and disabled people: the impact of policy change Thomson et al (The Cochrane Collaboration) - Housing improvements for health and associated socio-economic outcomes (review) Fuel Poverty and Health Toolkit A tool for directors of public health and their teams, health and wellbeing boards, and colleagues across local authorities who want to start, extend or improve their work on fuel poverty. http://www.healthyplaces.org.uk/themes/healthy-housing/fuel-poverty/

Inspiring change for people

and the environment

Using Solar PV to Tackle Fuel

Poverty

Tessa Clark, 23rd June 2014

We work with public and third sector organisations,

schools, communities and businesses to…

Inspire and enable

action to reduce

CO2, waste and

fuel poverty

Build confidence

and skills to make

sustainable choices

Share our

knowledge and

learn from others to

maximise our impact

Deliver the best

possible service

creatively and

professionally

About Changeworks

…and we focus our expertise on energy, waste and the sustainable use of resources

Changeworks Consultancy

• Research and evaluation

• Guides

• Low-energy retrofit projects

• Technical support

• Energy modelling and

feasibility studies

• Behaviour change support

• Tenant guidance

BACKGROUND

Background to PV

• Feed-in Tariff (FITs) scheme has driven huge uptake of PV

– now half a million installations in the UK

• But most installations in mid/high income households

– FITs paid through levy on energy bills

– Main opportunity for low income households to benefit is

social housing

• Electricity makes up 44% of average household energy bill

(£464 / year)

– PV provides good potential to reduce electricity bills from

non-heating appliances

• PV is straightforward to install

and easy to predict output

• Installation costs have fallen

dramatically with FITs

– now £5,500 for 4kW system

• Two key benefits:

– Feed-in Tariff (FITs)

– Reduce fuel bills

Advantages of PV (for RSLs)

Aim

• Assess and enhance the contribution PV installations have in

reducing fuel bills and tackling fuel poverty in social housing

Methods

• Measured electricity bills in 120 homes pre and post PV

installation

– Compared to electricity generation data from PV system

• Surveys and interviews with tenants

• Research with social landlords

Research project

KEY FINDINGS

• Average annual saving of £90 per household

– 8% saving on average tenant energy bill

– Size = 2.4 kWp

• For larger systems, £152/year (4kWp)

• Comparable to other energy improvements:

* Depending on fuel replacement

Savings from PV

Measure Annual savings

Cavity wall insulation £75 - 250

Loft top-up £15 - £25

Virgin loft £140 – 250

A rated windows £50 - 175

Replacing E rated boiler £75 - 310

Solar thermal £60 – 130*

But, savings could be higher…

Solar panel

Tenants’ homes

National grid

Assumed: 50%

Our study: 67%

Assumed: 50%

Our study: 33%

Average actual savings were less than installers’ predictions

(It can’t be stored)

% of PV generated electricity

Largely dependent on the user to:

1) Use electricity during the

daytime

– Only 42% of tenants

surveyed knew this (without

prompting)

2) Put appliances on one after

the other (during the daytime)

– 0% of tenants surveyed

knew this (without

prompting)

• Also some confusion about how PV works e.g.

– ‘it can store electricity’

– ‘it heats gas’

• Tenants wanted more information on:

– how it works

– how to make the most of it

– what savings they were getting

Lack of tenant understanding

I need to be told

how it works.

Booklet is too

complicated Not got a

clue! Nobody said

anything at fitting

– just said ‘That’s

you!’’

Do you know how to get the

most out of the system?

• Easy-to-understand information

• Free for social landlords to use

• Supported by training of front-line

HA staff

Two-thirds of tenants surveyed

changed their electricity use

habits after receiving leaflet

Tenant leaflet

The leaflet was

very informative

I use more

[electrical] items

in the day now

Limitations of data

Saving from PV

PV output

• Panel size

• Location

• Orientation

• Angle

• Shading

• Solar radiation

% of PV generated

electricity used

• Household electricity

demand

• Ability to use daytime

electricity

• Understanding of PV

This is difficult to

measure – need an

export meter

We know this from the

generation meter

Analysis has given an indication of savings and highlights

benefits of monitoring

Our results showed a wide variation in savings: • Some tenants’ bills increased after PV installation

• Some tenants’ bills decreased by more than is possible by PV alone!

CONCLUSIONS &

RECOMMENDATIONS

• But it is not ‘Fit and Forget’

– More emphasis needed on tenant guidance and support

• Monitoring savings and tenant feedback – important but often

neglected

• Other renewables may need even more support

Conclusions

• PV is well-suited to social housing

– Energy efficient stock

– High daytime occupancy rates

• Positive impact on reducing

electricity bills and alleviating fuel

poverty

Social landlords

• Consider PV as an effective

tool to contribute towards fuel

poverty alleviation

• Support tenants to get most

out of PV panels

• Carry out monitoring and

evaluation

– Consider export meters

– Get tenant feedback

Recommendations (1)

Energy suppliers:

• Enable energy consumption data to be collected more

easily

• Support and provide clarity on installation of export meters

Manufacturers/installers:

• Improve user-interface of PV generation (and export)

meters

Government:

• Acknowledge PV’s role in fuel poverty in policy

• Consider revising assumption that 50% of PV generated

electricity is exported

Recommendations (2)

consultancy.changeworks.org.uk

1. PV Guide for Social Landlords http://consultancy.changeworks.org.uk/assets/uploads/PV_Landlord_Guide_

Feb14.pdf

2. Tenant guide to PV http://consultancy.changeworks.org.uk/assets/uploads/Changeworks%20Sol

ar%20Guide%20A5.pdf

3. Final research report http://consultancy.changeworks.org.uk/assets/uploads/eaga_PV_FinalReport

_Feb14.pdf

Resources

Thank you

Tessa Clark Senior Consultant

Changeworks

0131 538 7954

tclark@changeworks.org.uk

New eaga Charitable Trust funded project on

district heating looking at metering, billing and

user issues of district heating

• Are you a social landlord?

• Do you have experience of district heating or

planning to install?

Please come and speak to me!

Or contact: tclark@changeworks.org.uk

District heating project

Fair Taxes

Fair Pay

A Fair Say

Fair Prices

The Poverty Premium

Grassroots work

Policy campaigns

Positive solutions

Fuel poverty:

key findings Over seven million people are in fuel poverty in the UK.

People on prepayment meters pay more for their fuel.

Prepayment tariffs make it harder to pay off debt and leave less money

for other essentials, including food and other bills.

Fuel-poor households spend up to 10 times more on fuel as a

proportion of their income - up to 30%.

There were 31,000 excess winter deaths in Britain last year.

Energy companies put vulnerable customers at risk by giving them

prepayment meters which cause them to ‘self-disconnect’.

Customers who have more than £500 of debt or a bad credit history are

blocked from switching to a cheaper supplier or tariff.

The Debt Assignment Protocol is not working effectively. In 2012, it

only helped 0.17% of those who applied.

Prepayment meters:

the problems

They charge above-average rates (five times higher in some cases)

The best energy deals on the market aren’t available to prepayment

meter customers

They are inconvenient for customers

Older meters need to be updated

manually

Some people find that they are

paying off debt from previous tenants

There is no competition in the market

for prepayment customers

The number of prepayment meters

is rising – and most are installed

to recover debt

Prepayment meters:

the problems

“The electric key and gas meter costs over £5 a day, whether

we are at home or not. I’ve been on pay-as-you-go meters the

whole time I’ve lived here, but the price increases have been

coming more and more often. I end up paying between £60 and

£70 a week in the winter, when the heating is only on for a few

hours a day. It’s unaffordable, and also means we can’t spend

money on anything else; sometimes we barely have enough for

food. I am really worried about the children, especially the

baby, they’ve started getting ill and it hasn’t even become

really cold yet.”

Story shared on the False Economy blog

Prepayment meters:

blocked from switching

Indebted customers can’t change tariffs

Other customers are made to pay installation costs

The Debt Assignment Protocol should allow people to switch – but it

doesn’t work

Prepayment meters:

blocked from switching

“I lost my home and now live in council accommodation. This

had both gas and electricity token meters. During the recent

hike I now have to find 25p per day on each meter as a standing

charge before I start paying for fuel. The energy companies

refuse to remove the meters unless I pay £300 each and pay a

deposit of £250 on each account. This is impossible in my

current financial position.”

Story shared at the Fuel Poverty Action website

Working for change

Grassroots work with people affected

National campaigns

Persuaded Ofgem to meet low-income

customers

Progress

and future plans

Ofgem to take concerns into account as

part of review of the sector

Gathering more evidence about people

paying other customers’ debts

Producing a guidebook to prepayment

meters for people in social housing

Scoping positive responses to the

Poverty Premium

Finding the Fuel Poor June 2014

Energy Audit Company June 2014

Local authority and RSL, incl fuel poverty (Beacon Councils)

Research projects

Energy databases

Affordable warmth strategies

Code and Ecohomes consultancy

Energy plans since 1995

EPCs on stock transfer 17,000!

RDSAP training

www.energyaudit.co.uk www.unoenergy.co.uk

EAC long history with FP

Fuel bill work for FBU (University of York)

Continues with MIS

Research for Wakefield, Knowsley, Golden Gates Housing and others

Eaga – Fuel poverty and Warm Front analysis

SAP and Affordable Warmth work

Member of FPMG (DECC advisory body)

Why Fuel Poverty?

(and not shoe poverty, food poverty etc)

Why Fuel Poverty?

• No source of cheap fuel (food etc)

• Reducing by measures needs large

capital expenditure

• Health implications

Fuel Poverty definition (old)

• Fuel bill (estimated by BREDEM) >10% of

income

• Very simple

• Government definition counts housing benefit

as income

• Increases if fuel prices rise faster than

incomes

• Anomalies

Fuel poverty definition LIHC

• LIHC much more complex

• FPMG independents and others

unhappy with the HC definition

• “Relative” measure as with poverty

generally

• Rising fuel costs – little change number

Low income

• Standard definition used in poverty

• Income under 60% of median (£11,440)

• Uses after housing cost income AHC

• Income adjusted (equivalised) for

household type

Equivalisation

• Divide AHC income by factor

• Factor depends on number of adults

and children (<14)

• First adult 0.58, second etc 0.42

• Each child 0.2

Income factors summary

1 person 0.58

2 adults 1.0

1A 1C 0.78

2A 1C 1.2

1A 2C 0.98

2A 2C 1.4

1A 3C 1.18

2A 3C 1.6

1A 4C 1.38

Fuel bill factors

(compare to median modelled bill of £1,224)

1 person 0.82 £1,707

2 people 1.00 £1,400

3 people 1.07 £1,308

4 people 1.21 £1,157

5 people 1.32 £1,061

e.g. If estimated bill (BREDEM) is £1,400

Consequences of change

• Many social housing tenants are poor, but not

in FP (small, high SAP)

• Over 60s in modest sized homes are not in

low income category – not FP

• High rent areas such as London have fewer

people in FP (lower incomes)

• LIHC used in new FP strategy (soon?)

• Focus for reporting is the Fuel Poverty Gap

Purpose of our work with Richard Moore

• LAs are best placed to identify FP and

help with schemes to improve

• Hierarchy of data

• Quick methods to be developed – can

we use a DIYHEC type method with

floor areas from EPC?

Options

• Advice centre/website simple questions

• Identify areas from DECC as priorities

• Ruling out categories

• Desk top (no visit) using existing (and new) data

• Door step – how accurate?

• ECO assessment + income

Current difficulty is the EHS survey and calc itself

BREDEM surveys and calcs

• Used since late 1980s

• EHS uses modified BREDEM 12 2001

• SAP and Green Deal use much later

version (2013)

• Currently comparing the methods using

the 2010 and 2011 EHS data

LIHC by LSOA (in UNO)

• BRE have used multiple regression

analysis to estimate FP by LSOA

• Modelled figures based on national

stats

• Not affected by local work

• May be used to initially help find the FP

• DECC may change from IMD criteria

Using LIHC criteria

• With 10% definition need both income

and running cost

• With LIHC if either is not true then not in

Fuel Poverty

• Which groups are low income and

which are not?

Initial analysis of EHS

NOT Low income – over 60s who own

their home (less than 1%)

ARE in Low income – JSA plus HB more

than 98% are LI

Most over 61/65 are less likely to be LI

Using a website to assess/calculate

on line?

• Option to use DECC “odds” with simple

questions

• Rule out with very simple questions- are

you on benefit?, are you over 65, how

many people in the house etc

• Use a simplified calculation but with

floor area from EPC

Using a site visit as Warm Zones to

assess on doorstep

• Income is problem if not on benefit

• How accurate does it need to be?

Multiply out for successive factors for that

household.

- In DECC example, odds multiply out to be

4730 times the base case (odds of 0.01%),

giving an overall probability of 32%

-We suggested if we know that much about the

household then why not carry out a calculation

Discussion, comments, views

Website you ( or the public) can log onto?

(Various options)

Software – UNO users will be upgraded

Tablet software for site visits

Do you need the Fuel Poverty Gap?

Others?

Thank You

Diane Bland and Jimmy Pugh NEA Project Development Co-ordinators

NATIONAL ENERGY ACTION