Research was undertaken by CSE to investigate which households will be most affected by Government energy policies to decarbonise electricity generation up to 2020.
This work was commissioned by Consumer Futures and was published in June 2013 in a report called ‘The Hardest Hit’. Click here to download a copy of the report.
CSE’s Ian Preston was the lead analyst.
"The report shows that the future design of policy needs to put fairness first rather than assessing the impacts after. The press coverage to date* has primarily focussed on the losers whereas the report clearly identified some big winners from energy policy."
To identify the hardest hit, we looked at which households will benefit and which will lose out as the Government rolls out its energy policies – like the EU Emissions Trading Scheme, Energy Company Obligations and Smarter Metering.
“Because energy policies are paid for mainly through our electricity bills, those households that use electric heating but don’t benefit from the various schemes and policy initiatives, will bear a greater share of the cost.
“We think that there may be as many as 2.1 million low income households who are the losers from current Government policy.”
These consumers are difficult to identify precisely but are likely to be either those living in purpose-built flats with electric heating, or households that include people of pensionable age in any type of property with electric heating. The research also looks at how these 'hardest hit' groups might be compensated.
‘The Hardest Hit’ calculates the average benefit to consumers of energy policy by 2020 to be £31, significantly lower than Government estimate of £166. The report also warns against relying on more efficient products and appliances to reducing consumers’ bills since the take up of new products may not be as high as predicted.