Some Enegry Saving analysis for the UK

1. 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

2. 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.

4. 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

5. The Background to Energy Conservation
per capita Consumption in Watts in UK ~ 5 kW
1970 1980 1990 2002
Domestic 816 882 902 1060
Transport 623 786 1076 1207
Industry 1379 1069 855 769
Other 411 414 425 442
Conversion 1712 1565 1745 1844
Total 4942 4716 5004 5321
Non-Energy 240 165 249 241
• Transport Energy use has risen 10.5% in last decade
• Domestic use has risen by over 10%

6. 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

7. 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
150
Total 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)

8. 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.

9. 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.

10. 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)*

11. 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.

12. 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.

13. Energy Tariffs: Provision of Comparison Services

14. 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

15. 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

16. Energy Saving: Awareness / Education / Advice
• Understandable Language
A mobile phone charger left on
------ up to 25 kg CO2 a year
Standby on television > 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.

17. 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

18. Generation of Electricity with a Gas Engine
61% Flue 3% Radiation
Losses Losses
36%
efficient
GAS
Engine
Generator
36% Electricity

19. Combined Heat and Power at UEA
11% 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

20. Energy Saving:
Perception of Energy Conservation in the UK?
Before Installation: Energy and Carbon Dioxide
electricity gas oil
1997/98 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 922563
kg/kWh 0.43 0.186 0.186 0.277 total balloons
tonnes 2066.6 2698.9 5256.9 255.5 10278 5710
Saving in CO2: 4824 tonnes or 31.9%

21. Energy Saving:
Perception of Energy Conservation in the UK?
Before the scheme
Energy Bill > £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

22. 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

23. 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

24. 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

25. Energy Saving: HECA www.heca.co.uk

26. Energy Saving: Energy Saving Trust: www.est.org.uk

27. Energy Saving: Energy Saving Trust www.est.org.uk

28. Energy Saving: The Carbon Trust
www.thecarbontrust.co.uk

29. Energy Saving: Energy Labelling

30. Solar Energy - The BroadSol Project
Solar Collectors installed 27th
January 2004
Annual Solar Gain 910 kWh
Grants of £500 were available per installation

31. 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

32. 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@uea.ac.uk
Н.К.Тови М.А., д-р технических наук
Факультет экологических исследований
Университета Восточной Англии
Energy Science Director, Low Carbon Innovation Centre