Introduction to Energy Poverty Brussels 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 Energy efficiency = the cost of achieving energy services, in UK

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

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) }{

Income + housing Low incomeHigh income Energy inefficient housing Energy efficient housing

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

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

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

Fuel poor pensioners England 2006 Fuel poor households Pensioner households 19% in fuel poverty 50%

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

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

Fuel prices and cost of government policy – 2008/9

Policy choices, fuel poverty and climate change

Minimum housing standards

Transforming housing

Local authorities and Warm Zones All homes in the area Funded by the utilities and government Community approach transport/success-stories/nottinghamshire/tackling-fuel-poverty

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

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?

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

Thank you