Energy: Low Incomes
(asked on 4th September 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, how much money energy companies have spent on assisting low income households in each of the last five years.
Larger domestic energy suppliers have been required to provide assistance to households under a number of supplier statutory obligations in the last five years. The Carbon Emissions Reduction Target (CERT), the Community Energy Savings Programme[1] (CESP) and the Energy Company Obligation (ECO) have required energy suppliers to provide energy efficiency measures to homes. CESP required measures to be installed in low income areas[2]. Under CERT at least 40% of carbon savings had to be delivered in homes of a Priority Group of low income and vulnerable households. ECO has had an element aimed primarily at low income and vulnerable households and from April this year that was increased to 70% of the obligation. In addition, the Warm Home Discount (WHD) primarily requires energy bill rebates to be made to low income and vulnerable households each winter.
Spending under ECO and Warm Home Discount
| 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 |
WHD[3] | £290m | £283m | £326m | £315m | £323m (est.) |
ECO[4] (Affordable Warmth spending[5]) | £7m | £630m | £175m | £206m | £242m |
Total: | £297m | £913m | £501m | £521m | £565m |
Although energy suppliers continued spending under CERT until 2012/13 and CESP until 2013/14 we do not have the data on the proportion of spending which went to low income households.
Energy suppliers have the ability to determine how to meet their obligations over designated time periods rather than following set delivery in any single year. They can frontload or backload delivery which affects the spend profile.
Energy suppliers have also provided direct financial and other assistance to their low income customers over the past five years but we do not have data on the value of that assistance.
[1] CESP was also an obligation on large electricity generators.
[2] The legislation required measures to be delivered in specific geographical areas (Lower Super Output Areas in England and Wales, and Data Zones in Scotland) selected using the Income Domain of the Indices of Multiple Deprivation (IMD) in England, Scotland and Wales. In England the lowest 10% of areas ranked in the IMD qualified and in Scotland and Wales the lowest 15% qualified.
[4] ECO started in January 2013. Spending by quarter: https://www.ofgem.gov.uk/ofgem-publications/58425/certfinalreport2013300413pdf
[5] The Affordable Warmth Group is made up of low income and vulnerable households.