Energy is becoming increasingly unaffordable and in response, the Energy Poverty Coalition (EPC), which involves charity and trade union groups1, is seeking, as a matter of urgency, an adequately resourced national strategy to address this deficit.
Energy poverty is the inability to heat one’s home and it is a growing issue which particularly affects lone parent and single adult households.
In its pre-budget submission the ECP says that every household should be able to afford all of their energy needs and live in warm, comfortable homes that enhance quality of life and health.
The focus of the EPC submission is on three areas: the Carbon Tax, Energy efficiency and Energy-related welfare supports.
On the Carbon Tax the EPC is critical of the lack of a Government strategy to alleviate the regressive impact of the Carbon Tax on low income households. In fact the EPC points out that the national Recovery Plan commits the Government to further increases in carbon taxi on top of the 9.4% increase in energy prices in the year to September 2011. “It is clear,” says John-Mark McCafferty, spokesperson for the Coalition, “that people in energy poverty, including the working poor, cannot withstand such cost measures without state support”.
Supports for Increasing Energy efficiency in energy poor households is a key element of any strategy to meaningfully address energy affordability, particularly in the homes of low income households who are not owner-occupiers, i.e. tenants in both the social housing and private rented sectors. The Programme for Government undertakes to double funding for home energy efficiency and renewables programmes until the end of 2013. “It is important that this commitment is delivered upon and that a sizeable proportion is allocated in Budget 2012, prioritising energy-poor households”, says John-Mark McCafferty.
The EPC is concerned about the suitability of Pay-As-You-Save initiatives for retro-fit programmes for low income homeowners. It says that the additional expense on utility bills is simply not affordable for such households. Pay-As-You-Save is also inappropriate for tenants, particularly low income tenants and those in the private rented sector.
In terms of Energy related welfare supports, provided via the Household Benefits package (‘free schemes’) and Fuel Allowance, the submission points out that both have been reduced over the past year, even though they are important policy measures to help poor households meet their energy needs. The EPC are calling for no further energy cuts in either the Household Benefits Package or the Fuel Allowance. It also wants the Fuel Allowance payment extended to include families on Family Income Supplement, and to be more targeted toward the fuel poor.
1 The Energy Poverty Coalition consists of Age Action, Alone, Energy Action, Focus Ireland, the Irish Council for Social Housing, OPEN, Protestant Aid, SIPTU, and the Society of St. Vincent de Paul.
iFrom €15 to €25 per tonne in 2012, with a further €5 per tonne increase in 2014
Full Energy poverty Coalition Submission to Budget 2012 can be viewed or downloaded here
For further information contact:
John-Mark McCafferty, Head of Social Justice with SVP, M: 087 236 3995