Onzo

Onzo has noted the recent report by U Switch, the price comparison and switching service, that average energy bills might rise to £5,000 a year by 2020. U Switch’s Director of Consumer Policy, Anne Robinson, has advised the consumer to take action by investing in making homes more energy efficient and reducing the amount of energy used.

A major disincentive to investment in energy efficiency is the extremely long time it takes for that investment to be repaid through lower energy bills. Onzo argues that the best way to overcome this problem is for the cost of the improvements to be carried not by the householder but by the home. There is a number of ways in which this could be achieved. Onzo has called for local authorities to make loans available for the purpose, using funds raised by the issuing of bonds, which would be repaid by successive home-owners through the council tax machinery.

A significant obstacle to reducing energy use in the home is a lack of understanding of power consumption. Householders badly need a means of providing them with comprehensive and actionable information on energy use. Research shows that energy monitoring displays are the most effective tools for realising a reduction in energy use. There are, however, other mechanisms, some of which are likely to be more cost effective. These include web sites and printed reports, and messages sent to mobile telephones. As they are complimentary, it is likely that a combination of these mechanisms will be the most effective.

Onzo therefore believes that in the programme to roll out smart meters, which is scheduled to take place between now and 2020, a way should be found to allow energy suppliers to fulfil their obligation to provide information to the consumer through a comprehensive range of these tools.