Energy Saving: The UK Perspective

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Energy Saving The UK Perspective and Addressing
Issues of Fuel Poverty
Keith Tovey Energy Science Director CRed Project
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Energy Saving The UK Perspective

• The Background to Energy Conservation
• Why is it important?
• Tariff Structure and issues of Fuel Poverty
• Perception of Energy Conservation in the UK?
• How is Energy Conservation promoted in the UK?
• Conclusions

3
Energy Saving Why is it important?

• The UK has been self sufficient in energy
• Under present trends the UK will be a substantive
  importer of natural gas and oil by 2020
• It makes sense to reduce energy demand and still
  remain competitive economically.
• Reducing energy demand will also see a reduction
  in carbon dioxide - the main contributor to
  Global Warming
• The Government has set targets and provided
  mechanisms to provide grants for individuals and
  industry.
• However, more could be done.

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The Background to Energy Conservation

• In UK each person is consuming energy at a
  rate of
• 5.1 kW
• In USA it is 10.6 kW
• 1/20th or Worlds Population consumes 25 of all
  energy
• In Europe it is 5.7 kW
• In Russia it is also 5.7 kW
• Globally it is around 2 kW
• ENERGY Consumption gt Carbon Dioxide gt Global
  Warming

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The Background to Energy Conservation
5 kW
per capita Consumption in Watts in UK

• Transport Energy use has risen 10.5 in last
  decade
• Domestic use has risen by over 10

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Energy Tariffs The UK Perspective

• Traditionally tariffs in UK composed of two
  parts
• A standing charge irrespective of level of
  consumption
• A unit rate
• This adversely affected low consumers.
• Since Deregulation the majority of tariffs now
  have a break point tariff
• No standing charge
• First N units at a relatively high rate
• Remaining units at lower rate
• Has less effect on low consumers.
• Some companies have tariffs including both a
  standing charge and a break point tariff

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Energy Tariffs The UK Perspective
Cheapest Tariffs lt 1000 kWh C 1000 to 1500
D 1500 to 4500 B gt 4500 A
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The Role of the Regulator

• OFGEM controls the prices charged by National
  Grid (Transco)
• and the Distribution Companies
• These are natural monopolies.
• Transmission and distribution make up around
  25-30 per cent of the
• average domestic bill.
• BUT
• OFGEM also has a duty to ensure the companies
  can finance
• investment needed to rewire Britain.
• Rewiring is necessary with increased use of
  Renewables.

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Consumer Protection

• Energywatch set up by the Utilities Act
  (2000).
• Funded by Department of Trade and Industry
• Funding comes from the licence fee paid by all
  energy
• companies
• It looks after consumers interests and deals
  with complaints
• Energywatch is accountable to the DTI.
• Energywatch is separate from OFGEM.
• Two organisations work closely together.
• Relationship with OFGEM is set out in a
  Memorandum of
• Understanding.

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Consumer Protection

• Energywatch
• Some key projects currently underway by
  Energywatch
• Dealing with Rogue Traders who try to get people
  to switch
• suppliers
• Dealing with late and inaccurate bills
• In 2002/2003 Energywatch had
• 45,546 account, billing and other complaints (up
  from 37,075)
• 34,027 transfer complaints (up from 30,743)
• 12,960 direct selling complaints (up from 6,991)

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Metering

• Specialist Metering Companies have entered market
  since 1998.
• Siemens Energy Services is now the largest
  independent supplier of metering services.
• It reads gas and electricity meters throughout
  the UK
• Processes customer data and handles the payment
  of bills.
• Siemens covers nearly 8 million households
  (around one-third)
• It provides a metering service for
• British Gas,
• Powergen,
• npower,
• Scottish Power,
• Scottish Southern Energy.

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Energy Tariffs The Question of Fuel Poverty

• Privatisation
• Introduction of Pool
• Deregulation
• NETA / BETTA
• Were designed to reduce charges to consumers and
  domestic consumers in particular
• Would address the Government aim of reducing
  number of people classified as Fuel Poor
• Deregulation had the greatest effect
• Fuel prices have risen substantially in recent 2
  years in response to rises in Whole sale Prices
• In Real Terms prices are now approximately back
  to pre Deregulation Prices.
• Government provide all pensioners with 200
  heating allowance each year.

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Energy Tariffs Provision of Comparison Services
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Energy Saving The UK Perspective

• The Background to Energy Conservation
• Tariff Structure and issues of Fuel Poverty
• Perception of Energy Conservation in the UK?
• How is Energy Conservation promoted in the UK?
• Conclusions

• The Domestic Sector
• An example from a large business

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The Background to Energy Conservation
How much Carbon Dioxide is each person emitting
as a result of the energy they use? In UK 9
tonnes per annum. What does 9 tonnes look
like?
Equivalent of 5 Hot Air Balloons! To combat
Global Warming we must reduce CO2 by 60 i.e.
to 2 Hot Air Balloons How far does one have to
drive to emit the same amount of CO2 as heating
an old persons room for 1 hour? 3.2 km
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Energy Saving Awareness / Education / Advice

• Understandable Language

A mobile phone charger left on ------ up
to 25 kg CO2 a year Standby on television gt 60 kg
per year Filling up with petrol (30 for a full
tank) --------- 90 kg of CO2 (5 of a
balloon) A tumble dryer uses four times as much
energy as the equivalent washing machine
- use the dryer sparingly Boiling an extra cup
full of water causes the emission of 25 cupfuls
of carbon dioxide.
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Energy Saving Perception of Energy
Conservation in the UK?
Domestic Consumers

• some see Energy Conservation as a way to save
  money
• less interested when they learn it may take many
  years to pay back
• others see Energy Conservation as a moral and
  environmental issue and will strive to
  incorporate energy saving at an early stage
• many over-estimate the size of their energy bills
• several people see themselves as already being
  energy efficient.
• PowerGen Energy Monitor (October 2004)
• many are influenced by other factors
• e.g. double glazing rather than cavity
  insulation!
• Many are unaware of what grants are available

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Generation of Electricity with a Gas Engine
36 efficient
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Combined Heat and Power at UEA
Localised generation can make use of waste
heat. Reduces conversion losses significantly
81 efficient
Engine heat Exchanger
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Energy Saving Perception of Energy
Conservation in the UK?
Before Installation Energy and Carbon Dioxide
After Installation
Saving in CO2 4824 tonnes or 31.9
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Energy Saving Perception of Energy
Conservation in the UK?
Before the scheme Energy Bill gt 1 000
000 per annum
After scheme Annual Saving initially
around 400 000 per annum
However, the introduction of the New Electricity
Trading Arrangements have had an impact out of
balance issues for suppliers to whom exports were
sold
Government targets were to achieve 10 000 MW by
2010 However, number of schemes have declined
slightly, and target will not be reached may be
difficult to achieve 7500 MW
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Energy Saving The UK Perspective

• The Background to Energy Conservation
• Tariff Structure and issues of Fuel Poverty
• Perception of Energy Conservation in the UK?
• How is Energy Conservation promoted in the UK?
• Conclusions

• What grants are available
• How is it financed?

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Energy Saving The UK Perspective

• The Background to Energy Conservation
• Perception of Energy Conservation in the UK?
• How is Energy Conservation promoted in the UK?
• Conclusions

• What grants are available
• How is it financed?

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Energy Saving Energy Conservation Grants
Home Energy Conservation Act 1995 -
HECA www.heca.co.uk
Energy Saving Trust Grants for Domestic
Properties - also Transport www.est.org.uk
Carbon Trust Grants for Businesses www.thecarbon
trust.co.uk
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Energy Saving HECA www.heca.co.uk
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Energy Saving Energy Saving Trust
www.est.org.uk
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Energy Saving Energy Saving Trust www.est.org.uk
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Energy Saving The Carbon Trust
www.thecarbontrust.co.uk
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Energy Saving Energy Labelling
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Solar Energy - The BroadSol Project
Solar Collectors installed 27th January 2004
Annual Solar Gain 910 kWh
Grants of 500 were available per installation
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Energy Saving Conclusions

• UK has made some steps to reduce primary energy
• More could be done
• Achieved as a combinations of
• Legislation
• Energy Conservation GrantsEnergy Labelling
• Promotion of Renewable Energy Schemes
• Climatic Change Levy
• Participation in EU (Carbon) Emissions Trading
  Scheme
• Awareness / Education / Advice

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Key Web Sites Home Energy Conservation Act
www.heca.co.uk Energy Saving Trust
www.est.org.uk Carbon Trust
www.thecarbontrust.co.uk National Energy
Foundation www.natenergy.org.uk
k.tovey_at_uea.ac.uk
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????????? ?????? Energy Science Director, Low
Carbon Innovation Centre