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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