1. 1 Energy Action Fuel Poverty Conference – 6/7 February 2012 Affordable Energy Strategy Dr Stjohn O’Connor Energy Efficiency & Affordability Division Department of Communications, Energy and Natural Resources, Ireland

2. 2 Energy Action Fuel Poverty Conference – 6/7 February 2012 Inter-departmental Group on Affordable Energy Appointed Indecon to assist in developing strategy Consultation with interested parties/government departments Published November 2011 Rollout: 2012 onwards Process

3. 3 Energy Action Fuel Poverty Conference – 6/7 February 2012 Starting Point Social tariffs Energy pricesIncome level Thermal Performance Consumer Protection Income Supports Retrofitting

4. 4 Energy Action Fuel Poverty Conference – 6/7 February 2012 Focus on Energy Efficiency: co-benefits Fewer energy subsidies Reduced energy infrastructure costs Reduced Emissions Health Dividend Local employment Improved community appearance Local spending Higher property values Social Dividend

5. 5 Energy Action Fuel Poverty Conference – 6/7 February 2012 Findings: Extent of Energy Poverty: Expenditure Method While the expenditure share method is an arbitrary and, in many cases, unsatisfactory measure, it does give an indication of the level of household resources taken up in obtaining home heating and transport It also helps to give an indication of potential vulnerability, especially in the event of an energy price rise. Energy Poverty in Ireland – Number of Households Experiencing Energy Poverty Definition/MeasureEnergy Poor – All Households No. of Households – 2009 % of All Households - 2009 Household Expenditure on Energy Greater than 10% of Household Disposable Income 316,71220.5% Households experiencing Severe Energy Poverty (expenditure greater than 15% of disposable income) 151,3449.8% Households experiencing Extreme Energy Poverty (expenditure greater than 20% of disposable income) 83,1375.4%

6. 6 Energy Action Fuel Poverty Conference – 6/7 February 2012 Findings: Extent of Energy Poverty: Subjective Method Subjective Measures of Energy Poverty YearSource Survey A: Households reporting that they cannot afford to heat their homes adequately B: Households that had to go without heating in the past year due to lack of money Composite Indicator (A, B or both) Share of Househol ds (%) Number of Househol ds Share of Households (%) Number of Househol ds Share of Household s (%) Number of Household s 2003SILC3.547,0007.8104,0008.9119,000 2004SILC3.751,0005.779,0006.995,000 2005SILC4.057,0006.593,0007.7110,000 2006SILC4.668,0006.697,0008.1119,000 2007SILC3.656,0475.788,3826.8104,382 2008SILC4.267,1396.7105,4838.0127,984 Source: Indecon based on data provided by CSO

7. 7 Energy Action Fuel Poverty Conference – 6/7 February 2012 Findings: Energy Poverty Rates by Income Group

8. 8 Energy Action Fuel Poverty Conference – 6/7 February 2012 Findings: Energy Poverty Rates by Household Composition

9. 9 Energy Action Fuel Poverty Conference – 6/7 February 2012 Findings: Energy Poverty Rates by Accommodation Type

10. 10 Energy Action Fuel Poverty Conference – 6/7 February 2012 Low income, particularly where a household falls within the lowest income decile (where 68.5% of households are energy-poor) or where the head of household falls within the ‘working poor’ group (51.1%) Where a household is occupied by older people, and particularly if they are living alone (49.1%) or where the main breadwinner is widowed (50.5%) Households renting their homes from a local authority (39%) Households living in accommodation built prior to 1945 Findings: Key Risk Factors

11. 11 Energy Action Fuel Poverty Conference – 6/7 February 2012 Implementation Starting point: Income supports, efficiency measures and customer protections Recognise the environment we operate in Focus on what we can achieve (lots) Requires a co-operative effort Innovate

12. 12 Energy Action Fuel Poverty Conference – 6/7 February 2012 Income Supports Weekly Payments (unemployment assistance) Fuel allowance payments Household Benefits Package (Free electricity or gas units) Heating supplements under the SWA scheme (Assists people who have special heating needs e.g. disability, ill health or infirmity)

13. 13 Energy Action Fuel Poverty Conference – 6/7 February 2012 Thermal Efficiency Measures Measures targeted at 3 areas: –Private housing –Social housing –Voluntary housing Important to understand the housing stock/skills that are in the market 2 million housing units –1.6 million occupied and in private ownership –130,000 social housing units –25,000 voluntary housing units

14. 14 Energy Action Fuel Poverty Conference – 6/7 February 2012 Domestic Efficiency Measures Three strands: –Private Housing; Social Housing and Voluntary Housing Private Housing (DCENR & SEAI) –Delivered by community-based organisations and private contractors –80,388 homes have been upgraded since 2001 to date under the WHS Social Housing (DoEHLG) –Delivered by local authorities and private contractors –€47million spent on energy upgrades in 2009 and 2010 Voluntary Housing –Covered by both DoEHLG and DCENR/SEAI

15. 15 Energy Action Fuel Poverty Conference – 6/7 February 2012 Domestic Efficiency Measures Other Initiatives –Central heating scheme for social housing –Housing adaptation grants for older people and people with disabilities –2010 building regulations –Better Energy: Homes –Energy saving targets for energy suppliers

16. 16 Energy Action Fuel Poverty Conference – 6/7 February 2012 Irish Energy Prices Fully liberalised market All-island energy market High level of supplier switching amongst customers Customer charters for energy suppliers Disconnection policy Dedicated information portal (www.energycustomers.ie)

17. 17 Energy Action Fuel Poverty Conference – 6/7 February 2012 Future Direction Early action essential Implement strategy (48 actions), which means: –5 priority work packages –Area-based approach –Ensure greater access to energy efficiency measures –Reform eligibility measures –Review the National Fuel Scheme and Household Benefits Package

18. 18 Energy Action Fuel Poverty Conference – 6/7 February 2012 Thank you stjohn.oconnor@dcenr.gov.ie