Onzo, the leading designer of home energy management systems, has commented on the battle to combat fuel poverty following last week’s publication of the government’s annual report on the subject and estimates that the number of people affected may double, to seven million, by the end of 2008. Onzo argues that the sudden and steep rise in fuel prices should not be allowed to distract us from the underlying issues that drive fuel poverty. These remain the same – poor energy efficiency and inadequate incomes. They affect us all to varying degrees; and the government has failed to tackle them adequately.
According to Joel Hagan, Chief Executive of Onzo, a windfall tax is not the answer. “Windfall taxes alienate business, which likes certainty in earnings and does not want profits periodically diverted to the Treasury when it is short of cash. We need energy companies to invest in generation, distribution and metering; any diversion of funds will impact capital expenditure plans”. Hagan went on to welcome the commitment from the energy companies to spend £910m over three years on energy efficiency but pointed out that this sum will not go far. It will probably improve the insulation of somewhere between 100,000 and 200,000 homes in each of the three years – a drop in the ocean when there are around 22.5 million homes in the UK.
The causes of fuel poverty are a mixture of high energy prices; low household incomes; poor energy efficiency; and individual vulnerability. Money to tackle the problem should be directed at those with the lowest income, the least energy efficient dwellings, dwellings with outdated heating technology, and those that are most vulnerable to low temperatures – the youngest, the eldest, those with impaired mobility, and those with conditions that affect breathing. That means handouts until the infrastructural improvements can be made, and a much more vigorous programme undertaken to improve the energy efficiency of the UK housing stock.
High above all the other issues stands individual behaviour, however. As Hagan says, “We need to know how much energy appliances use. We need to know what we could save by taking certain actions. We need prompts for when to use and when not to use. We need to know how much we use compared with other people. We need to know how we are performing against a target. At the beginning of the road to changing behaviour is accurate, timely and actionable information, from energy efficiency labelling on appliances, energy displays, printed information and websites”.
Fuel poverty is an archetypal challenge to joined-up government. Onzo welcomes the creation last week of a new Department for Energy and Climate Change which should some way to ensure the co-ordination of policy, although the important potential of the internet as a channel of information on energy usage seems lost in the Department for Culture, Media and Sport because it is assumed to be primarily a channel for entertainment. In fact it is fast becoming an essential utility.
It is to be feared that when winter energy bills arrive on the doormat in the spring the true extent of the problem will be felt. There is need for immediate action to put a sticking plaster over the wound, but this should not disguise the vital necessity to address the issue once and for all. Without imaginative thinking fuel poverty will remain a disgraceful blemish on our modern society. The time for developing long-term solutions is now.
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