Energy Saving: The UK Perspective and Addressing Issues of Fuel Poverty Keith Tovey Energy Science Director CRed Project Н.К.Тови М.А., д-р технических наук Факультет экологических исследований Университета Восточной Англии
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
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.
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 World’s 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 > Carbon Dioxide > Global Warming
The Background to Energy Conservationper capita Consumption in Watts in UK ~ 5 kW 1970 1980 1990 2002Domestic 816 882 902 1060Transport 623 786 1076 1207Industry 1379 1069 855 769Other 411 414 425 442Conversion 1712 1565 1745 1844Total 4942 4716 5004 5321Non-Energy 240 165 249 241 • Transport Energy use has risen 10.5% in last decade • Domestic use has risen by over 10%
Energy Tariffs: The UK PerspectiveTraditionally tariffs in UK composed of two parts: A standing charge irrespective of level of consumption• A unit rateThis adversely affected low consumers.Since Deregulation the majority of tariffs now have a break pointtariff• No standing charge:• First N units at a relatively high rate• Remaining units at lower rateHas less effect on low consumers.Some companies have tariffs including both a standing charge and abreak point tariff
Energy Tariffs: The UK Perspective Tariff A B C D Standing charge (£ per annum) 40 0 0 20 Unit Rate A (pence per kWh) 8.5 12 11.5 9.5 Break Point (kWh) 1000 2500 2500 Unit Rate B (pence per kWh) 8.6 8.8 8.5 700 300 250 600 250 500 200 Cheapest Tariffs 200 < 1000 kWh C Total Cost 400 Total Cost 150 A A 150Total Cost 300 B B 100 C 1000 to 1500 A D C 200 D D B 100 50 1500 to 4500 C B 100 D 0 0 50 > 4500 A 0 1000 0 2000 500 3000 1000 5000 4000 500 1500 6000 2000 7000 2500 1000 3000 1500 2000 Annual Consumption (kWh) Annual Consumption (kWh) Annual Consumption (kWh)
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.
Consumer ProtectionEnergywatch: 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.
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)*
Metering•Specialist Metering Companies have entered market since 1998.•Siemens Energy Services is now the largest independent supplierof 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.
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.
Energy Tariffs: Provision of Comparison Services
Energy Saving: The UK Perspective• The Background to Energy Conservation• Tariff Structure and issues of Fuel Poverty• Perception of Energy Conservation in the UK? • The Domestic Sector • An example from a large business• How is Energy Conservation promoted in the UK?• Conclusions
The Background to Energy ConservationHow much Carbon Dioxide is each person emitting as aresult 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
Energy Saving: Awareness / Education / Advice• Understandable LanguageA mobile phone charger left on ------ up to 25 kg CO2 a yearStandby on television > 60 kg per yearFilling up with petrol (~£30 for a full tank) --------- 90 kg of CO2 (5% of a balloon)A tumble dryer uses four times as muchenergy as the equivalent washing machine - use the dryer sparinglyBoiling an extra cup full of water causes theemission of 25 cupfuls of carbon dioxide.
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
Generation of Electricity with a Gas Engine61% Flue 3% Radiation Losses Losses 36% efficient GAS Engine Generator 36% Electricity
Combined Heat and Power at UEA11% Flue 3% Radiation Localised Losses Losses 81% generation can efficient make use of waste heat. Exhaust GAS Heat Exchanger Reduces conversion losses significantly Engine Generator Engine heat Exchanger 45% Heat 36% Electricity
Energy Saving: Perception of Energy Conservation in the UK? Before Installation: Energy and Carbon Dioxide electricity gas oil1997/98 kWh 19895328 351418158 33150 kg/kWh 0.43 0.186 0.277 total balloons tonnes CO2 8555 6537.6 9.2 15101.7 8390 After Installation: electricity (kWh) demand 20436531 CHP generation 15630431 export 977000 gas (kWh) oil (kWh) import 5783100 Boilers CHP net import 4806100 14510078 28263077 922563kg/kWh 0.43 0.186 0.186 0.277 total balloonstonnes 2066.6 2698.9 5256.9 255.5 10278 5710 Saving in CO2: 4824 tonnes or 31.9%
Energy Saving: Perception of Energy Conservation in the UK?Before the scheme Energy Bill > £1 000 000 per annumAfter scheme Annual Saving initially around £ 400 000 per annumHowever, the introduction of the New Electricity TradingArrangements have had an impact out of balance issues for suppliers to whom exports were soldGovernment targets were to achieve 10 000 MW by 2010However, number of schemes have declined slightly, and target willnot be reached may be difficult to achieve 7500 MW
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? • What grants are available • How is it financed?• Conclusions
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? • What grants are available • How is it financed?• Conclusions
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.thecarbontrust.co.uk
Solar Energy - The BroadSol Project Solar Collectors installed 27th January 2004Annual Solar Gain 910 kWhGrants of £500 were available per installation
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
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 email@example.com Н.К.Тови М.А., д-р технических наук Факультет экологических исследований Университета Восточной АнглииEnergy Science Director, Low Carbon Innovation Centre