Affordable Energy Strategy
Dr Stjohn O’Connor
Energy Efficiency & Affordability Division
Department of Communications, Energy and
Natural Resources, Ireland
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Process
• Inter-departmental Group on Affordable
Energy
• Appointed Indecon to assist in developing
strategy
• Consultation with interested
parties/government departments
• Published November 2011
• Rollout: 2012 onwards
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Starting Point
Retrofitting
Thermal Performance
Social
Consumer
tariffs
Protection
Income
Supports
Energy prices
Energy Action Fuel Poverty Conference – 6/7 February 2012
Income level
3
Focus on Energy Efficiency: co-benefits
Reduced energy
infrastructure costs
Reduced
Emissions
Fewer energy
subsidies
Health Dividend
Local
employment
Higher property
values
Improved
community
appearance
Social Dividend
Local spending
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Findings: Extent of Energy Poverty: Expenditure Method
Energy Poverty in Ireland – Number of Households Experiencing Energy Poverty
Definition/Measure
Energy Poor – All Households
No. of Households –
2009
% of All Households 2009
Household Expenditure on Energy Greater
than 10% of Household Disposable Income
316,712
20.5%
Households experiencing Severe Energy
Poverty (expenditure greater than 15% of
disposable income)
151,344
9.8%
Households experiencing Extreme Energy
Poverty (expenditure greater than 20% of
disposable income)
83,137
5.4%
• While the expenditure share method is an arbitrary and, in many
cases, unsatisfactory measure, it does give an indication of the level of
household resources taken up in obtaining home heating and transport
It also helps to give an indication of potential vulnerability, especially in
the event of an energy price rise.
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Findings: Extent of Energy Poverty: Subjective Method
Subjective Measures of Energy Poverty
Year
Source
Survey
A: Households
reporting that they
cannot afford to heat
their homes
adequately
B: Households that had
to go without heating in
the past year due to lack
of money
Composite Indicator (A,
B or both)
Share of
Househol
ds (%)
Number
of
Househol
ds
Share of
Households
(%)
Number of
Househol
ds
Share of
Household
s (%)
Number of
Household
s
2003
SILC
3.5
47,000
7.8
104,000
8.9
119,000
2004
SILC
3.7
51,000
5.7
79,000
6.9
95,000
2005
SILC
4.0
57,000
6.5
93,000
7.7
110,000
2006
SILC
4.6
68,000
6.6
97,000
8.1
119,000
2007
SILC
3.6
56,047
5.7
88,382
6.8
104,382
2008
SILC
4.2
67,139
6.7
105,483
8.0
127,984
Source: Indecon based on data provided by CSO
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Findings: Energy Poverty Rates by Income Group
120,000
80.0%
Nos. of Households and Energy Poverty Rates by Income Decile
68.5%
70.0%
100,000
Estimated No. of Energy Poor Households in 2009
60.0%
55.7%
Energy Poverty Rate - Energy Poor as % of All Households in Income Decile
80,000
50.0%
40.0%
60,000
40.0%
30.0%
40,000
24.3%
20.0%
14.9%
58,568
35,656
21,781
9,491
4,587
20%
30%
40%
50%
60%
70%
1.0%
10.0%
761
81,670
10%
0 Action Fuel Poverty Conference – 6/7 February 2012
Energy
3.1%
1.6%
1,405
100,410
6.5%
2,388
20,000
0.5%
7
0.0%
80%
90%
100%
Findings: Energy Poverty Rates by Household Composition
100,000
60.0%
Nos. of Households and Energy Poverty Rates by Household Composition
90,000
50.0%
Estimated No. of Energy Poor Households in 2009
49.1%
80,000
Energy Poverty Rate - Energy Poor as % of All Households by Composition
70,000
39.0%
40.0%
60,000
29.6%
50,000
30.0%
21.8%
40,000
20.0%
30,000
15.3%
9.6%
20,000
9.2%
8.0%
10.0%
10,000
0
94,647
9,488
56,409
63,543
3,396
Energy Action Fuel Poverty Conference – 6/7 February 2012
6,675
9,009
4,923
0.0%
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Findings: Energy Poverty Rates by Accommodation Type
Nos. of Households and Energy Poverty Rates by Accommodation Type
180,000
30.0%
Estimated No. of Energy Poor Households in 2009
160,000
24.3%
Energy Poverty Rate - Energy Poor as % of All Households by Accommodation Type
25.0%
140,000
19.6%
120,000
100,000
20.0%
14.7%
15.0%
12.1%
80,000
9.5%
60,000
10.0%
5.8%
40,000
5.0%
20,000
0
171,019
139,751
2,065
334
Energy Action Fuel Poverty Conference – 6/7 February 2012
1,086
739
0.0%
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Findings: Key Risk Factors
• Low income, particularly where a household falls
within the lowest income decile (where 68.5% of
households are energy-poor) or where the head of
household falls within the ‘working poor’ group
(51.1%)
• Where a household is occupied by older people,
and particularly if they are living alone (49.1%) or
where the main breadwinner is widowed (50.5%)
• Households renting their homes from a local
authority (39%)
• Households living in accommodation built prior to
1945
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Implementation
• Starting point: Income supports, efficiency
measures and customer protections
• Recognise the environment we operate in
• Focus on what we can achieve (lots)
• Requires a co-operative effort
• Innovate
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Income Supports
• Weekly Payments (unemployment
assistance)
• Fuel allowance payments
• Household Benefits Package (Free
electricity or gas units)
• Heating supplements under the SWA
scheme (Assists people who have special heating
needs e.g. disability, ill health or infirmity)
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Thermal Efficiency Measures
• Measures targeted at 3 areas:
– Private housing
– Social housing
– Voluntary housing
• Important to understand the housing stock/skills
that are in the market
• 2 million housing units
– 1.6 million occupied and in private ownership
– 130,000 social housing units
– 25,000 voluntary housing units
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Domestic Efficiency Measures
• Three strands:
– Private Housing; Social Housing and Voluntary Housing
• Private Housing (DCENR & SEAI)
– Delivered by community-based organisations and private
contractors
– 80,388 homes have been upgraded since 2001 to date under
the WHS
• Social Housing (DoEHLG)
– Delivered by local authorities and private contractors
– €47million spent on energy upgrades in 2009 and 2010
• Voluntary Housing
– Covered by both DoEHLG and DCENR/SEAI
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Domestic Efficiency Measures
Other Initiatives
– Central heating scheme for social housing
– Housing adaptation grants for older people
and people with disabilities
– 2010 building regulations
– Better Energy: Homes
– Energy saving targets for energy suppliers
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Irish Energy Prices
• Fully liberalised market
• All-island energy market
• High level of supplier switching amongst
customers
• Customer charters for energy suppliers
• Disconnection policy
• Dedicated information portal
(www.energycustomers.ie)
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Future Direction
• Early action essential
• Implement strategy (48 actions), which means:
– 5 priority work packages
– Area-based approach
– Ensure greater access to energy efficiency
measures
– Reform eligibility measures
– Review the National Fuel Scheme and
Household Benefits Package
Energy Action Fuel Poverty Conference – 6/7 February 2012
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Thank you
stjohn.oconnor@dcenr.gov.ie
Energy Action Fuel Poverty Conference – 6/7 February 2012
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