The role of regulation indriving behaviour change

Andrew Faulk

Consumer Focus Scotland

Scottish Government – June 2010

Andrew.Faulk@consumerfocus.org.uk

0141 227 1842

Scottish Housing Stock:Dwellings by NHER Band 2002-08

Why Consumer Focus Scotland is interested: Ofgem predict continuing energy price rises

How are consumers responding to rising energy costs?

• Half report no problems, but a quarter are ‘more concerned now’ and a further quarter ‘sometimes or always have difficulty paying’

• Growing adoption of low cost energy efficiency behaviours

• Less adoption of energy efficiency investments, especially in private rented sector

Both affordability and carbon targets mean we need to look at behaviour change

Consumer aspects of behaviour change

• Sustainable Development Commission / National Consumer Council, 2006

• Regulation, pricing and social factors interact

• Exemplify, Enable, Encourage, Engage

•...and consider ‘Event’

Existing Energy Efficiency Services

• Different solutions for different consumers– New housing standards– Information – Funded programmes for fuel poor– Area-based approaches, working

through trusted groups– Grants and incentives (PAYS, Council

Tax rebates)

• Change needed means regulation of existing housing in addition

Different types of regulation

Issues in designing regulation(s)Which sector? • Private rented, social, owner occupied

What approach? • Set standard • Agreed measures

When? • trigger at point of sale or rental • Set standard at given date

Implementation?• Effect on housing supply• Who is responsible – capacity issues• Support needed for different consumers

Key Points

• Regulation of housing is complicated!

• Needs to integrate with prices and social factors

• Emphasise the benefits – lower costs, better health, less carbon

• Consider practical implementation issues, and pilot new approaches

• Allow for change over time and monitor progress