Blog: Creating a future energy system that works for everyone

Here in the UK, domestic heating accounts for around 14% of all UK carbon emissions. It’s little wonder then that banning gas boilers is seen as a positive decarbonisation decision, and electrification hailed as a cure-all for home heating.

But what’s missing from the discussion around policies and proposed incentives is a real and honest representation of the relationship between energy and poverty. The Fuel Bank Foundation bears witness to the effects of rising energy prices on people in fuel crisis every day. Since the organisation was formed, it’s worked with more than 1.2 million people in the UK who simply cannot afford to top up their prepayment meter, buy insulation or get their boilers repaired; people who might otherwise be unable to heat their homes, cook their meals or have a hot shower.

Xoserve’s Victoria Mustard recently met with Matthew Cole, Head of Fuel Bank Foundation, to find out his views on the current net zero plans and how we can make sure everyone has equal access to the energy system.

Ensuring everyone is considered as decarbonisation plans are made

Fuel Bank’s work provides Matthew and his colleagues with unique insights into the relationship that people in poverty have with energy. The idea of installing a heat pump in their home, or even implementing what others would consider basic energy efficiency measures, may seem entirely impossible. As Matthew explained,

‘People who come to us often are on a low income with very little flexibility. It can be really hard to ‘weather the storm’ and the thought of investing big amounts of money in something new is just a pipedream. But they’re some of the most energy-aware people I’ve ever come across… they absolutely understand the value of energy and how you can use energy more efficiently… but they’re just not able to afford to make the changes needed.’

Matthew went on to describe how gathering information on how low income households use energy could be really useful. Energy efficiency is almost always their top priority, above and beyond any other measures, and while it’s often overlooked as we focus on more radical decarbonisation plans, it can provide benefits to the energy system and the entire UK population as well as individuals. Energy efficiency has the potential to reduce overall energy consumption, reduce the strain on our system during the energy transition and, when widely adopted, will naturally lead to a significant reduction in carbon emissions. Matthew believes it is a common sense step we can't afford to miss:

‘To decarbonise the UK we need to understand what our base level demand for energy should be. To really understand that, we’ve got to make sure homes are well insulated. At the moment, we’re trying to decarbonise a leaky system…

What’s more, as people who really think about and monitor energy consumption and need to make the smallest investments with the biggest value, low income households could potentially provide some valuable energy efficiency learnings and help us think about the energy transition, heat demand and energy essentials from a new perspective. As Matthew says,

‘Mentally, people [in fuel crisis] are already there. They understand how energy efficiency improvements could really make a difference - but they simply can’t afford to make their homes more efficient.’

We need to change the way we communicate about energy

To ensure that no one gets left behind on the net zero journey, Fuel Bank believes that it’s going to be crucial to rethink the way we communicate about energy.

Today’s energy suppliers are certainly getting better at talking to their customers. Most have stepped up to fulfil a supportive role that they might previously felt was at odds with their primary purpose: to sell energy. But there’s still plenty of room for improvement. It’s easy to take it for granted that everyone understands energy as a commodity, for example, when in reality there are many people that understand energy as ‘heat and light’ rather than ‘gas and electricity’. Some may not even know what fuel supplies they have flowing to their home. As Matthew explains,

‘There can be a tendency to use complex industry language when we’re talking about energy, pre-payment meters and other services. We’re all responsible for solving that by providing information in a way that’s simple to understand.’

There are a few different reasons why communicating in a clearer way is important. For one, literacy levels in low income households may be below the UK population average. But there’s also the immediate stress-filled situation to think about; the human element that is easy to forget when theoretical scenarios are mapped out or academic conversations take place:

‘If you're in a crisis, worried about having the heating on at home tonight, your kids coming home from school and how you are going to wash their clothes for school tomorrow, whatever it might be, you’re in survival mode… you need information to be really easy to read, understand and act upon.’

Living without energy shouldn’t become a new normal

One of the other ways that Fuel Bank helps those in fuel crisis is by taking their concerns to policymakers. The charity believes that energy poverty could all too easily become a new normal in the UK and that it will have far-reaching consequences for society as a whole:

‘In some communities it’s really endemic, it's just accepted that there are times of the month when you don’t have heat, light and power.’

Without heat, research shows us that people are more likely to have damp homes, suffer from mental health problems and respiratory illness, and have children that are struggling at school. 41% of Fuel Bank clients also have a critical need for energy in their home, such as powering medical equipment.

So how do we support these people as we transition to net zero? Matthew believes that addressing energy efficiency first and taking a more joined up approach to data gathering might provide an answer:

‘First, we’ve got to really quickly, as a country, address the energy efficiency of properties, on a national, street by street basis…. we also need a social tariff that is really targeted, rather than something ‘universal’.

It’s certainly true that some people on low incomes will be in well insulated homes, while others won’t. People with a disability or medical condition might need higher payments while others without health concerns might need less. Getting the amount of assistance right is important if we are to avoid the trap of increasing bills to fund support, inadvertently raising costs and dragging more people into fuel poverty.

Fuel Bank believes that we should be talking about how we better support priority customers and examining how we make it easier for people to flag that they are rationing energy or cannot pay their bill. With the right data, it should be possible to pinpoint these people and proactively offer them help. And this may be data that already exists, from the NHS and DWP, or perhaps from energy suppliers if functionality is added to their systems that provides an alert when direct debits fail a certain number of times or when emergency credit is repeatedly used or not topped up after it runs out.

Creating a fair and equitable energy system that is also sustainable is a complex problem - but we will only solve it if we find new ways to give a voice to the people most affected by rising energy costs.

To learn more, listen to the full podcast with Matthew Cole below.

Fuel poverty podcast

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