Fuel Poverty

(asked on 2nd November 2017) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the average level of outstanding household energy bill debt in each year since 2010; what estimate he has made of the number of fuel-poor households which will remain in properties insulated below Energy Performance Certificate Band C by 2030; and if he will make a statement.


Answered by
 Portrait
Claire Perry
This question was answered on 7th November 2017

Ofgem’s Domestic Suppliers Social Obligation: 2011 Annual Report shows the average level of consumer debt held by energy consumers in 2010 was £360 for electricity and £339 for gas, and in 2011 £357 for electricity and £371 for gas. The Ofgem report ‘vulnerable consumers in the retail energy market 2017’ shows the average level of debt at the point customers start to repay “take-on debt” from 2012 to 2016. The methodology for reporting debt levels changed in 2012. This means it is not possible to provide a like for like comparison from 2010 through to 2016.

Figure 6 in the Ofgem report shows the average level of debt from 2012 to 2016, and can be found at: https://www.ofgem.gov.uk/system/files/docs/2017/10/consumer_vulnerability_report_web_003.pdf

The fuel poverty strategy has interim milestones to improve fuel poor homes to Band E by 2020 and Band D by 2025. This guides an approach to targeting the least energy efficient properties first, as they are facing the most severe problem. The latest official statistics show that there were 835,000 fewer E, F or G rated fuel poor homes in 2015 compared to 2010. This focus on the least energy efficient homes does mean that fewer D rated homes are improved to Band C, within the same budget. The latest statistics show that 8% of fuel poor households are were rated Band C or better in 2015 and this is projected to increase to 11% in 2017.

We will continue to make progress towards the fuel poverty milestones and 2030 target. The Clean Growth Strategy recently committed to at least £640m of support per year for home energy efficiency through to 2028 and we will be consulting in the new year on our proposals for the Energy Company Obligation (ECO) to run from 2018 to 2022. In parallel, we will be considering the best forms of support for home energy efficiency over the longer term for subsequent consultation.

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