Welcome. North West Fuel Poverty Forum Policy Update. 30 th January Diane Bland NEA Project Co-ordinator

Transcription

1 Welcome North West Fuel Poverty Forum Policy Update 30 th January 2013 Diane Bland NEA Project Co-ordinator

2 Price Rises Complete 3,300 kwh of electricity and 16,500 kwh of gas on a standard dual fuel tariff. Domestic energy prices 2013 Supplier Current bill New bill Effective from British Gas 1,260 1,336 November EDF Energy 1,202 1,332 December E.ON 1,260 1,370 January npower 1,244 1,356 November ScottishPower 1,349 1,368 December SSE 1,235 1,354 October ,258 1,352 Average

3 Other fuel types Average price of space and water heating alone (2011) Oil: 1,511 Coal: 1,181 LPG: 1,915 Electric: 1,228 Oil/Coal/LPG//Oil - Based on 3 bed house 117,900 kwh for space and water heating alone

4 Fuel Debt Scale and Impact Scale Ofgem (Q ) 692,567 = electricity 700,751 = gas Average Debt 354 = electricity 377 = gas Increase in debt over 600 Copyright NEA 2013

5 Policy in Flux! Warm Front just about to end Cert ended Green Deal and ECO started Energy Bill due Fuel Poverty Strategy due before summer Reviews, Reforms and Inquiries..

6 Reviews, Reforms, Inquiries Office of Gas & Electricity Markets (Ofgem) Vulnerable Consumer Strategy Review Priority Service Register (PSR) Promote Best Practice/New ways for distributors to engage Ofgem Retail Market Review Encourage and equip consumers to get best deal Reforms to ensure consumer protection and better service Department of Energy and Climate Change (DECC) Better deal for energy consumers Collective switching

7 Reviews, Reforms, Inquiries Select Energy and Climate Change Committee Inquiries into Green Deal Domestic energy prices, supplier profits and fuel poverty Office Of Fair Trading OFT - Energy Efficiency: Empowering Consumers, Encouraging Growth Fuel Poverty Action Group 10 th Annual Report

8 Retail Market Review SIMPLER CHOICES Ban on complex multi-tier tariffs and scrapping of uncompetitive dead tariffs All tariffs shown as a standing charge and single unit price Limit each supplier to 4 core tariffs per fuel Single price for each tariff discounts based on dual fuel or lower cost payment methods Must include one variable rate tariff and one fixed rate tariff

9 Retail Market Review CLEARER INFORMATION All consumers given their supplier s cheapest tariff on their bill and estimated savings they could make if they switched to it A Tariff Comparison Rate to compare tariffs like for like across the market New improved annual statement with personalised information to help consumers find their best deal

10 Retail Market Review FAIRER TREATMENT Fair treatment to be enforced by standards of conduct backed by fines Consumers to default to cheapest tariffs at the end of fixed term contracts Ofgem to consider ways to promote more collective switching

11 From the side-lines Labour s Real Energy Market Review Abolish Ofgem and substitute a tough new energy watchdog with the power to force energy companies to pass on price cuts when wholesale costs fall Require energy companies to pool the power they generate and make it available to any retailer to open up the market and make it more transparent Require energy companies to put all customers aged over 75 on the company s cheapest tariff thereby saving up to 4 million pensioners up to 200 on their annual energy bills

12 DECC Better deal for energy consumers Discussion document seeks views on proposals to ensure consumers get the cheapest energy tariffs and looks at: Simpler tariffs and the cheapest tariff for consumers Clearer information More help for vulnerable consumers Helping consumers switch Facilitating collective purchasing and switching Third party intermediaries

13 Collective Switching Switching companies - (Which?) approach suppliers to get a better price reverse auction. Individual households switching has gradually declined and collective switching is seen as an avenue to address this issue. The first major switch organised in June 2012 by Which? Resulted in 95,000 registering with 37,000 doing so and achieved an average saving of 233 per annum

14 Green Deal Inquiry Select Committee on Energy and Climate Change undertook an inquiry into Green Deal. The inquiry asked: What are the best indicators of progress, and how should they be measured e.g:? Take-up Accessibility Energy/carbon savings Closed, but interesting to see results.

15 Inquiry - domestic energy prices, supplier profits and fuel poverty. Energy & Climate Change Committee seek evidence on following issues: Is Gov t on track to meet its fuel poverty targets? Has Hills review resulted in any changes in fuel poverty policy? To what extent are current policies reaching the right people? Will proposals to ensure consumers are on cheapest tariff impact on fuel poverty? To what extent do fuel poor households engage in switching? Written evidence is to be submitted by February

16 Other inquiries Office Of Fair Trading OFT - Energy Efficiency: Empowering Consumers, Encouraging Growth Identified certain practices that fail to meet consumer law and undermine consumer confidence Further investigation into areas of concern Guidance published for consumers Compliance guidance reminders to companies

17 Sound advice but deaf ears? FPAG 10 th Annual Report HECA

18 Green Deal and ECO A Guardian survey of the 24 companies listed as domestic "assessors" for the scheme on the Government s website found that: Of 18 contactable 5 will charge between 95 and 150 for an upfront assessment fee 11 were not able to answer the question 1 - (Mark Group) plans to offer the assessment for free 1 company had been mistakenly listed as a provider on the government's website.

19 ECO and Equity Two recent reports suggest the cost of ECO to the Government (the bill payer) will be higher than expected Energy UK say 94 p/a on the bills rather than 53. IPPR say poor targeting is a big factor and more area-based approaches would help.

20 Selling the Green Deal to UK households Key Findings - UK Energy Research Centre Jan 2013 A key assumption that market barriers are holding back a flood of demand for energy efficiency in homes - is overly simplistic. The biggest motivating factor in the decision to renovate is to improve domestic life Up to a third of decisions to renovate are triggered by specific events For homeowners planning to renovate, the Green Deal is an attractive option Contractor reliability, and avoiding hassle and disruption to domestic life, are the most important factors.

21 Fuel Poverty Summit - Edinburgh Ed Davey restated the UK Govt s approach in tackling fuel poverty Help with costs (winter fuel payments, cold weather payments, Warm Home Discount) Energy efficiency (ECO, Green Deal) GD good for fuel poor because it will create new market and will drive down costs through competition Competition (tariff reform, collective switching) very keen on latter: made it a condition of recent Council competition that bids had to show how their initiatives would help fuel poor

22 Fuel Poverty Summit - Edinburgh Ed Davey restated the UK Govt s approach in tackling fuel poverty Change to fuel poverty definition through Hills: good for policy development, sets priority for action, focus on those in deep fuel poverty Claimed that fuel poverty advocates support Hills definition?? Costs of ECO: Government looked at methodology used by IPPR and found it flawed. Govt will review ECO costs once scheme has bedded down.

23 Fuel Poverty Summit - Edinburgh Ed Davey restated the UK Govt s approach in tackling fuel poverty Low income off-grid consumers will benefit from renewable heat incentive and growth of oil clubs All key Government departments will be involved in new Fuel Poverty Strategy: focus on how to identify fuel poor, best proxies, local authorities and third sector will play a key role because they can help build trust

24 CERTifiably SPG? CERT compliance for SPG targets varied from 12.2% to 62% Ofgem to the rescue! Suppliers can automatically attribute 32% of their social housing work to SPG because trend shows 33% of social housing tenants will be on a qualifying benefit. Ofgem s approach is pragmatic and to some extent understandable, but it masks a failure on the part of suppliers to identify and assist the most vulnerable and financially disadvantaged energy consumers.

25 CERTifiably SPG? Figures to April 2012 Ofgem Aug 2012

26 CERTifiably SPG? Figures to April 2012 Ofgem Aug 2012

27 CERCERTifiably SPG? Figures April 2012 Ofgem Aug 2012

28 CERTifiably SPG? Figures to April 2012 Ofgem Aug 2012 CERT compliance for SPG targets varied from 12.2% to 62%. Ofgem to the rescue! Suppliers can automatically attribute 32% of their social housing work to SPG because trend shows 33% of social housing tenants will be on a qualifying benefit. Ofgem s approach is pragmatic and to some extent understandable, but it masks a failure on the part of suppliers to identify and assist the most vulnerable and financially disadvantaged energy consumers.

29 Latest excess winter death figures Estimated 24,000 excess winter deaths in England and Wales in 2011/12 an 8% reduction from 10/11. As in previous years, higher in females. Between 2010/11 and 2011/12 male excess winter deaths decreased from 11,270 to 10,700 female deaths from 14,810 to 13,300. Majority occurred among those aged 75 and over: 19,500 excess winter deaths in this age group in 2011/12 compared with 4,500 in the under 75-year-olds.

30 Cold costs, warmth saves Age UK has calculated that the estimated cost to the NHS in England arising just from cold homes is around 1.36 billion per year. Cold, damp, thermally inefficient houses which people cannot afford to heat sufficiently to protect their health are a peculiarly British public health scandal.

31 NEA Warm Homes Campaign National Fuel Poverty Awareness Day, February 1 st NEA Warm Homes Campaign throughout February

32 Jenny Saunders OBE As chief executive of NEA her leadership, energy and dedication have ensured that the plight of those unable to afford to keep their homes warm does not go unnoticed and that action is taken to help.

33 Interesting reports Age UK, The cost of cold: Why we need to protect the health of older people in winter, IPPR, Energy efficiency: who pays and who benefits? 2012 EC Joint research Centre, Heating and cooling: Best available technologies in Europe, 2012 Institute for Sustainability, Retrofit Insights, 2012

34 NW NEA Meeting Andrew Ward 30 th January 2013

35 ECO 1 st October What happened? 35

36 ECO Guidance Consultation The ECO Guidance for Suppliers Consultation was issued in November. Response required by 25 th January likely to come into effect from April. Key Asks To consider the delay and the uncertainty over the guidance in the initial period understanding /flexibility required Minimum 8 week gap between final guidance being published and changes coming into effect Ensure Brokerage and guidance aligned - consider implications of Brokerage on the one month rule requirement Include an ongoing banking type mechanism to give suppliers certainty of progression towards targets Specify core information and refrain from enforcement. All other info to be provided in a timely manner DWP/HMRC verification required as opposed to holding evidence of benefits A better means of evidencing householder Land Registry check on 5% to confirm individual, not company To specify what they will accept under good reasons give examples (notification extensions/not completing 100% of the installation etc) Clarify evidence required for HHTCWI Clarify boiler definitions and improve boiler assessment checklist Change the guidance relating to warranties shouldn't have to provide a warranty for full system Provide detailed rural and adjoining area information Conduct a full review of ECO once there is enough delivery experience/ before ECO 2 discussions start so lessons can be learned. 36

37 Energy Company Obligation Where is ScottishPower? 37

38 Where are we? Closing off CERT and CESP Key Contractors Learning as we go Sharing risk Opportunities - partners with funding 38

39 Affordable Warmth Referrals Energy Saving Advice Centre Including verification with DWP Other referral sources Energy Company Assessor Property assessment (EPC) Installer Installation of Affordable Warmth measures 39

40 Andrew Ward

41 NHS CQUiN Targets Fuel Poverty Clare Redfern Stockport MBC Jan Sinclair Stockport NHS Foundation Trust Stepping Hill Hospital

42 Agenda Overview of how it started NHS perspective Setting up the system from both sides Training Referrals what, where, who Issues Results

43 Starting Out Fuel Poverty CQUIN H.I. Indicator No.25 Rationale for inclusion: Cold housing = key contributor to a range of health problems including respiratory and excess winter deaths. Contact with services = valuable opportunity for patients to engage help and support in order to avoid above health deficits.

44 Setting Up The System NHS IT networks Slotting the fuel poverty services into existing referral pathways on line. Choosing the right wards targeting key areas in order to obtain the speciality group of patients in order to maximise the referrals i.e. Respiratory and stroke wards. Fuel poverty link nurse in each area essentially to be motivated and confident in talking to patients about fuel poverty issues and: To coordinate appropriate patients for referral Be the main contact for advice and queries Make the referral via the on line electronic process SMBC Setting up the referral system

45 Training Quick and basic Don't need to know the ins and outs of grants Haven t got time for lengthy sessions Quick reminder guide Bespoke training to suit the needs of the ward areas Patient Need Refer Result

46 Referrals Simple ways to refer Online via NHS network staff already familiar with this process of referral (easily accessible and instant confirmation) Lifestyle coordinator liaison with energy efficiency services in Stockport to ensure accurate information re referred patients i.e. correct patient, patient not in residential care facility. Freepost referral cards

47 Referrals Referrals are made to: Insulation Scheme Heating Grants local and national Warm Homes Discount (practically all) Trust Funds if necessary United Utilities Care Scheme Stockport Advice Benefits/Debt Local charities Age UK Stockport, Signpost for Carers, Disability Stockport, Adult Social Care, Royal British Legion GM Fire Fire Safety Checks Home Security Home Repairs Fuel Bills Advice (practically all) Fuel Switching collective or otherwise

48 Referrals Out of Area Refer to national schemes where applicable Warm Homes Discount Warmfront / EST Green Deal Source local advice centres Fuel Bills Advice Trends More about income than housing Practically all patients / customer eligible for Warm Homes Discount Utility Priority Group Schemes United Utilities Care Scheme reduced water bills

49 Issues Staff resistance too busy Make it as simple as possible Quick Provide results Gratitude Timings Cant deal with referrals straight away Quantity and quality of referrals Lack of funding

50 Results Total Referrals 141 Total Open Cases 37 Total Closed Cases 104 From closed cases only total of services received 316 Estimated Financial Impact 14,740 Catergory Number Ill-health 104 Children Under 5 1 Over Vulnerable 95

51 NHS Benefit Avoidance of repeated admissions to hospital due to the impact of fuel poverty issues on poor health. Opportunistic referral into services without time consuming advice seeking processes. Potential patients from deprived areas of the borough who wouldn t normally seek help and advice helping to bridge the gap of health inequality. Payment to the Trust due to gaining the target of fuel poverty referrals.

52 Summary Simple referral system Very brief training to wards Fuel Poverty Champions Feedback Results

53 Contacts Clare Redfern Affordable Warmth Officer SMBC Jan Sinclair Lifestyles Coordinator NHS Foundation Trust - Stockport jan.sinclair@stockport.nhs.uk

54 Overview of the Welfare Reforms Allyson Whisker Partnership Development Manager (North) Citizens Advice

55 Outline What s Happening? What is Citizens Advice doing?

56 Welfare Reform The scale of change is huge. Biggest reform of social security for over 60 years 18 billion is to be cut from the welfare bill by 2014 Every area of the benefit system is set to change Already an impact on thousands of families and individuals across the UK

57 Main Changes Universal Credit New Will Will Tougher benefit replace all means tested benefits and tax credits be paid to people both in and out of work sanctions will be introduced, tying claimants more closely to labour market activity.

58 Main Changes Universal Credit Couples made up of pensioner working age will be a working age household instead of a pensioner household. This could mean losses in excess of 100 per week for some.

59 Main Changes Housing Benefit Several Planned Changes Under Direct changes introduced savings of 2 billion by in the way housing benefit rates are set will mean that fewer properties will be available or affordable to rent within the rates available. Occupancy Payments

60 Main Changes Disability Living Allowance (DLA) Will be replaced by a new Personal Independence Payment (PIP) Budget for this benefit will be cut by 20 per cent from its current level. Entitlement will be based on a new face-to-face medical assessment. Around one in six current DLA claimants will not qualify for PIP.

61 Main Changes Employment and Support Allowance (ESA) Contribution-based Around ESA will be time limited to one year 300,000 people assessed as disabled or too ill to work will lose over 95 each week as a result

62 Main Changes Council Tax Benefit National benefit will be replaced by localised schemes Current budget (less 10 per cent) Local authorities can decide how their local scheme will operate Only pensioner households are protected Working age households with full help - likely to pay at least 20% from 2013

63 Main Changes Social Fund Some aspects abolished Budgets devolved to local authorities No requirement to provide any specific support

64 Main Changes Benefit Cap No one will receive more money out of work than the level of average wages Currently set at 500 a week for a family and 350 for a single person The implication that a family can receive more when out of work than in work, is not the case The few families who do receive more than 500 when out of work would also receive that level of benefits on top of their wages when in work

65 Action by Citizens Advice Welfare Reform Programme and Programme Manager to lead and coordinate activity across the service. Citizens Advice lobbied extensively as the Welfare Reform Bill passed through Parliament Secondary legislation is yet to be laid out and there is still much more work to be done Supporting CABx locally to help them work with their LAs on the development of localised schemes and to share good practice

66 Action by Citizens Advice Seven key objectives: secure funding for Citizens Advice and the bureau network influence policy to achieve the best results for the public including a structured campaign approach update information sources and provide additional tools to support the advice process

67 Action by Citizens Advice produce training to meet the needs of bureaux develop new services to meet the needs of the public develop capacity in bureau network to deliver services develop key partnerships to reduce duplication and costs

68 Action by Citizens Advice Scoping the impact of the reforms on our service Talking to other organisations in the sector about joint working Question of physical capacity to meet demand Linking with a range of other initiatives within the service including financial inclusion work.

69 Contact: Allyson Whisker Partnership Development Manager Citizens Advice

70 Thank You North West Fuel Poverty Forum Diane Bland NEA Project Co-ordinator