Energy efficiency ‘notably absent’ from support package

Several industry experts have raised their concerns about a lack of detail surrounding energy efficiency in the government’s announcement of support for households this winter.

Earlier today (8 September) prime minister Liz Truss confirmed to Parliament that bills will be frozen at £2,500 annually for the average household from October over the next two years.

Peter Smith, director of policy and advocacy at charity National Energy Action (NEA), told Utility Week that plans to improve energy efficiency were “notably absent” from the prime minister’s statement.

Smith said that even at current levels bills are going to be “unmanageable for millions of households”, despite welcoming the price freeze and the prospect that bills will not rise by as much as previously forecast.

He added: “There is a concern that we’re going to need to do more to help support the poorest households. In particular, prepayment meter customers will continue to be at a disadvantage given the relative differential between cap levels, and those households on standard credit.

“So there is more work to do in this space, not least on improving domestic energy efficiency, which was notably absent from that announcement.”

Meanwhile NEA chief executive Adam Scorer said the announcement will bring “huge relief” to consumers, adding that the charity has subsequently revised its estimate of households expected to fall into fuel poverty this winter from 8.9 million to 6.7 million.

He too called for a greater focus on efficiency and added that the new government “must not forget that the most vulnerable need targeted support”.

He said: “Those who use more energy in their homes because of medical conditions, those who are elderly and those on very low incomes need extra help so they don’t have to ration their usage, putting their physical and mental health at risk. Those on prepayment meters must not be forgotten either. They would benefit from a lower rate or additional relief from huge standing charges.

“We hope too, that longer term the prime minister will focus on greater investment in energy efficiency. It not only saves consumers money and makes homes warm and safe places to live, it creates jobs, provides an economic return to the Treasury and reduces strain and costs for our stretched health services.”

Elsewhere Simon Virley, vice chair and head of energy and natural resources at KPMG, described the strategy as a “missed opportunity”.

He said: “The absence of any serious attempt to reduce demand and improve energy efficiency is a major omission in the plans announced today. Britain has the least energy efficient housing stock in Europe: taking action to reduce demand, as is happening as a matter of urgency in other European countries, could reduce bills permanently, and lower our dependence on imported oil and gas.

“By failing to act on energy efficiency and by not harnessing all the cheapest forms of low carbon energy, this strategy is a missed opportunity to improve energy security, lower bills permanently and deliver net zero at least cost to consumers.”

‘Critical gap’

The chief executive of the Association for Decentralised Energy (ADE), Lily Frencham, said her organisation was “hugely relieved” to see the prime minister commit to a fund that will provide equivalent support for heat network customers.

However, she too expressed concern about the lack of energy efficiency measures announced.

She added: “While we celebrate today’s announcement for its progress on heat networks, if the prime minister does indeed wish to ‘tackle the root causes of high prices to make sure we are never in the same position again’, she has made a critical omission – energy efficiency.

“The lack of emergency, immediate action now to support the widespread deployment of energy efficiency measures ahead of this winter marks a critical gap in the UK’s defences against the worst impacts of the energy price crisis, and a major hole in the country’s short and long-term energy security.”

The frictions inherent in balancing net zero, security of supply and affordability are at the core of the agenda for the Utility Week Forum, on 8-9 November in London. Find out more here.