Presentation to LVSC : 10th December 2013

E3G - Third Generation Environmentalism

1

The Fuel Poverty Crisis in the UK

6 million households in fuel poverty(10% definition)

1.6 m children in fuel poverty in UK

Higher risk of

respiratory diseases

Higher risk of

mental health problems

Children in fuel poverty in UK

Netmums Survey – 1 in 4 members choosing between feeding and heating

Elderly in fuel poverty in UK

6 million older people in fuel poverty

Elderly in fuel poverty in UK

31,100 Excess Winter Deaths last winter

Rising Energy Bills

Energy bills have doubled since 2005

UK : bottom of Western Europe Fuel Poverty League Table

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Estimated proportion of households spending considerable share of their expenditure on energy

Average household's expenditure on energy

The Cause:The woeful state of Britain’s homes

UK vs Sweden

UK vs Sweden

• Warmer UK winters• Lower Energy Prices in UK• Same Income

• 4 X more people unable to heat home in UK

• 20% higher rate of excess winter deaths in UK

• 70% more fuel poverty in UK• Homes leak three times more

heat in UK

Poor insulation = high risk of fuel poverty

Climate change: buildings

43% of carbon emissions

The long term solution

Make homes super energy efficient

UK : funding reduced for fuel poor

• Financial support for fuel poor cut by 20% over course of this Parliament

• Financial support for energy efficiency measures for fuel poor reduced by 20%

• Warm Front axed in 2013

Green Deal – The Headlines

Energy Company Obligation

• ECO will remove up to 250,000 households from fuel poverty by 2023

• Winter 2012 / 2013 – 300,000 more households fell in to fuel poverty

The Ask

Use carbon revenues to make all fuel poor homes super energy efficient

E3G - Third Generation Environmentalism

17

Target: Manifesto Commitments

The Carbon Revenue Prize

£60 Billion

Enough to super-insulate 9 million homes

The long term revenue stream

1.9 2.0 2.2 2.3 2.5 2.7 2.9 3.03.3

3.64.1

4.75.2

5.76.2

.6.7

.7.7

.8.8

1.0

1.0

.9

.8

.7

.7

.6

£.0 Bn

£1.0 Bn

£2.0 Bn

£3.0 Bn

£4.0 Bn

£5.0 Bn

£6.0 Bn

£7.0 Bn

£8.0 Bn

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Rev

enu

e (£

Bn

)

Year

EUETS Revenue Carbon Price Floor Revenue

Carbon Revenue Estimates 2013-2027

Carbon revenues grow from £1 billion to £8 billion per year over 15 years

21

What could we achieve in a fuel poor home?

The Impact

• 9 million households super energy efficient

• Quadrupled carbon savings

• Generation of 128,000 jobs

Biggest Fuel Poverty

Alliance Ever Created

Public Meetings Across UK

Media Coverage

• 5 national

articles or

broadcasts

every week

The macro-economic case

Cambridge Econometrics: Economic Impacts

• Short term investment stimulus– generates up to 71,000 jobs in 2015– boosts economic output more than VAT cuts, fuel duty reductions and government

spending– Best for growth

• Long term economic gains– Up to 128,000 jobs in 2027– Lower gas imports– extra domestic spending– Best for growth

Political Support

• 205 MPs in support

• Third most supported petition in Parliament out of 1330

• Liberal Democrats adopt as official party policy

• Labour to announce new Energy Efficiency Green Paper

Autumn Statement 2013

£50 off energy bills

• Warm Homes Discount funded from general taxation

• ECO – Fuel poverty elements ring-fenced

• ECO – Carbon savings cut by 34%• New Energy efficiency incentives

for landlords and people moving home.

Three Winter Campaign Push

0

50

100

150

200

250

300

350

Winter12/13

Winter13/14

Winter14/15

Public Meetings

Media Coverage

Activism (000)

Alliance Members

MP Support

Re-building Homes: The Number 1 Infrastructure Priority

TNS Public Polling

Number 1 infrastructure choice

• Home Insulation 57%• Power stations 15%• Road building 15%• HS2 3%• Airports 2%• Tube Extension 1%

Burning cash to keep warm

Week of ActionFebruary 2014

The Prize

• An end to fuel poverty

• Every home helped to minimise energy bills

• 4 times more carbon cut

• Greater energy security

• 128,000 jobs & a stronger economy

• Saving lives

• Public support for the low carbon transition

www.energybillrevolution.org