The government stated in ‘Our Shared Future’ that they would ‘Amend the Energy Efficiency Obligation Scheme. To boost the supply of retrofits, by increasing the targets which obligated parties must deliver, including for domestic homes and those in energy poverty’. SVP welcomed this announcement. It is disappointed to see that it is not translated into a larger ring-fenced element of the scheme.
While the overall target for the EEOS is larger, and therefore an equivalent percentage will see more savings under the energy poverty sub-target. We would like to have seen more ambitious use of the scheme to target households in energy poverty by increasing the proportion ring-fenced.
There are a number of factors that lead to SVP recommending a higher proportion of the target is focussed on those in energy poverty.
Firstly, the current target is expected to be exceeded (for EEOS 2014-2020 obligated parties are expected to exceed their Energy Poverty target by 20% (consultation paper footnote p29)). This demonstrates that there is both capacity and appetite to reach more people in energy poverty than the existing 5% stipulates.
Finally, the amount of energy efficiency measures needed in energy poor homes, and the assistance needed by these households to make improvements, means the EEOS should focus available resources on these homes to reduce widening inequality between those households who can afford improvements independently, and those that require assistance.
SVP's submission to the Department of the Environment, Climate and Communications April 2021.