Energy poverty – risks, conflicts and opportunities in the development of energy poverty alleviation policy under the umbrella of energy efficiency and climate change

Panel: 2. Current energy efficiency policies: On stage and backstage

This is a peer-reviewed paper.

Authors:
Louise Sunderland, RAP and Independent, United Kingdom
Darryl Croft, The Association for the Conservation of Energy, United Kingdom

Abstract

The new Gas and Electricity Directives (which repeal their predecessors in March 2011) recognise that “energy poverty is a growing problem in the Community”. The Directives introduce a requirement for Member States to, firstly, define the concept of vulnerable customers, specifically indicating that this may refer to energy poverty, and, secondly, to “take appropriate measures” through national action plans or frameworks, social security systems or support for energy efficiency improvements to address energy poverty where identified.

In this context of the growing problem of energy poverty in Europe and new requirements for Member States to take action, this paper considers the risks, potential conflicts and opportunities in the development of energy poverty alleviation policies under the umbrella of efficiency and carbon reduction. Drawing from experiences in the UK where targets for the eradication of energy poverty (termed fuel poverty) have been in place since 2000 (Warm Homes and Energy Conservation Act), the paper considers the risk that energy poverty poses to the development of challenging demand reduction policies, the potential conflict between energy poverty reduction policies and carbon reduction policies, the tension between the need to keep fuel affordable and the cost of climate change policies, and the strong social driver that energy poverty provides for investment in energy efficiency improvement. The paper will provide insights and lessons for the development of what for many Member States will be a new policy strand in the carbon reduction stable of policies.