Area Based Energy Efficiency Schemes in Scotland

Andrew Faulk

Consumer Focus Scotland

Overview

• Who we are

• Energy prices and consumers

• Different approaches to energy efficiency

• Area-based schemes: what works?

• Current funding streams

• Where next...?

Consumer Focus

• Consumer Focus is the consumer champion for England, Wales, Scotland and, for postal issues, in Northern Ireland

• We work across the economy, with special emphasis on energy and post markets

• Ask the Advisor for energy questions

• Consumer Focus Scotland energy policy:– Directly on devolved issues– With colleagues on GB issues

Energy prices, past and future

Source: Ofgem, Project Discovery

How can consumers reduce costs?

• Switch to the best tariff for their household

• Adopt energy efficient behaviours

• Install longer term energy efficiency measures

• Our job is to make these actions as easy as possible for consumers

How are consumers responding?

• A quarter ‘sometimes or always’ have difficulty paying energy bills; a further quarter are now ‘more concerned’

• Increasing interest in energy efficiency behaviours, more limited take-up of physical measures

• Better off consumers more likely to act • Barriers for others:

– Living in rented accommodation– Up front costs– Hassle factor– Knowing ‘how to’ go about

installing measures

Energy efficiency services for different consumers

Area-based Schemes in Scotland

• Some run by suppliers – CERT, CESP

• Supported by Climate Challenge Fund

• Increasingly, supported by Scottish Government

Success Factors

• Work through local organisations

• Provide free or low cost measures

• Smooth customer journey with enabling measures is critical

• Link to other assistance

• Monitoring and evaluation data is currently poor

Scottish Government Schemes

Home Insulation Scheme• Areas proposed by local authorities• Delivery by EST & regional

contractors• Free loft-top up popular measure• Referrals to Energy Assistance

Package

Universal Home Insulation Scheme• Testing effect of free measures• More emphasis on partnership

working• Bids invited, decisions in process

Community Energy Saving Programme (CESP), GB wide

• Funded through suppliers, lowest 15% SIMD

• Whole house approach, including expensive measures

• 18 live schemes, 60 in development (including Scottish Hydro / GHA)

• Industry open to discussion: match funding and good information critical

What happens next? - UK Green Deal

• UK Government ‘Pay As You Save’ scheme

• Revised suppliers’ obligation replacing CERT

• Likely area-based element

• Details currently under development– Customer journey?– How does finance work?– More expensive measures – SWI, microgen?

Housing Agency Perspectives?

Clear strengths• Strong local presence • Long history and experience of energy work,

including whole building / communal systems• Better understanding of housing stock than

other agencies?

But• Access to finance, especially for Hard to treat

properties?• Other barriers?

Andrew FaulkConsumer Focus Scotland

0141 227 1842

Andrew.Faulk@consumerfocus.org.uk

Questions?