Energy efficiency is ‘the dog that is not barking’

Citizens Advice’s chief executive has said it is “surprising” that the issue of energy efficiency has been “relatively absent” from discussions on supporting customers through the current energy crisis.

Clare Moriarty was speaking during a briefing on the charity’s latest data dashboard in which Citizens Advice revealed it was continuing to overshoot projections for the numbers of people seeking its support.

She said: “It’s certainly true that considering how critical energy efficiency is to the long term solution, it does feel surprising that it’s been relatively absent from discussion.

“The previous government’s energy security announcements back in the early summer really didn’t talk about energy efficiency at all…it seems to be such a critically important building block in terms of addressing all of the kinds of issues that we’ve been talking about.”

She further raised concerns about the fact the £2,500 ‘cap’ on energy bills announced by the government is not actually cap and that consumers with poorly insulated homes maintaining heating temperatures will find themselves being charged more.

“We know that people on lower incomes are often more likely to be living in less well insulated homes… We can’t begin to get to low carbon heating systems unless we crack energy efficiency, because even if you can afford to do so there is no point putting a heat pump in if you don’t have a properly insulated home,” she said.

Moriarty added that energy efficiency feels “like the dog that’s not barking at the moment”, adding,  “we will certainly be doing our utmost to make sure that it barks a bit more in the coming weeks and months.”

She made the comments as Citizens Advice released a new report in which it called for the government to implement a “Great British Energy Efficiency” scheme to rapidly upgrade the least efficient homes, and protect households from the instability of global gas markets.

It said the energy efficiency market has “been in decline for the last decade” and that supply chains will need long term guarantees to have the confidence to invest and expand their capacity to meet the demand needed.

The report, Insulation Nation, said the average household is paying an “inefficiency penalty” of almost £350 per year and those in the worst insulated properties could be spending more than £950 more than is necessary, representing 31% of their annual bill.

It claimed that if all homes were upgraded to EPC Band C, this would save billpayers nearly £8.1 billion a year at current prices. It said that to bring homes to this standard, an average of £3,800 would need to be invested – a figure the charity says is already unaffordable for many.

People living in Wales, the West Midlands, and Yorkshire and the Humber face the highest costs. Almost two thirds (63%) of homes in these areas have EPC ratings below band C.

Households in London and the South East meanwhile are most likely to be in a better position, yet more than 50% of homes in these regions still have poor EPC ratings.

It added: “As households continue to struggle with the cost of living crisis, the upfront costs of insulation and other energy efficiency measures have become unaffordable for many.

“For those who don’t qualify for existing schemes, there is little help available. A scheme of grants and partial subsidies would remove this barrier and help bring our leaky homes up to scratch.”

Further concerns have been raised regarding a lack of awareness of various efficiency schemes, with almost two thirds (64%) of homeowners having not heard of the Energy Company Obligation (ECO).

Of those that had heard of ECO, almost three quarters (74%) of those on benefits either didn’t know whether they were eligible or incorrectly stated that they were not eligible.

The charity said its proposed Great British Energy Efficiency scheme would deliver fully funded grants up to £10,000 to improve the energy efficiency of those on the lowest incomes in the leakiest homes. Partial grants would then be awarded to other households on the basis of a sliding scale according to income.

It said if the government matched the funding of its £37 billion cost-of-living support package, nearly one third of the UK’s homes could be upgraded over the next few years.

Moriarty added: “The government’s bill freeze puts an emergency stop to terrifying price hikes. Now we need an exit strategy from this energy crisis.

“Bills are going through the roof – literally for people in cold and draughty homes, where heat seeps out when they turn up the thermostat. This is burning through many people’s tight budgets.

“Insulating our homes is the long-term solution that will cut down our bills and reduce our dependence on gas. The government must make it a top priority.”

These issues will be discussed in more detail at Utility Week Forum in London this November. For more information and to book your place, click here.