trans european saving-presentation_feb21_2006

Energy Saving: The UK Perspectiveand

Addressing Issues of Fuel Poverty

Keith Tovey

Energy Science Director

CRed Project

Н.К.Тови М.А., д-р технических наук

Факультет экологических исследований Университета Восточной Англии

• The Background to Energy Conservation– Why is it important?

• Tariff Structure and issues of Fuel Poverty

• Perception of Energy Conservation in the UK?

• How is Energy Conservation promoted in the UK?

• Conclusions

Energy Saving: The UK Perspective

Energy Saving: Why is it important?

• The UK has been self sufficient in energy

• Under present trends the UK will be a substantive importer of natural gas and oil by 2020

• It makes sense to reduce energy demand and still remain competitive economically.

• Reducing energy demand will also see a reduction in carbon dioxide - the main contributor to Global Warming

• The Government has set targets and provided mechanisms to provide grants for individuals and industry.

• However, more could be done.

• In UK each person is consuming energy at a rate of

5.1 kW

• In USA it is 10.6 kW

1/20th or World’s Population consumes 25% of all energy

• In Europe it is 5.7 kW• In Russia it is also 5.7 kW

• Globally it is around 2 kW

• ENERGY Consumption > Carbon Dioxide > Global Warming

The Background to Energy Conservation

1970 1980 1990 2002Domestic 816 882 902 1060Transport 623 786 1076 1207Industry 1379 1069 855 769Other 411 414 425 442

Conversion 1712 1565 1745 1844

Total 4942 4716 5004 5321

Non-Energy 240 165 249 241

per capita Consumption in Watts in UK ~ 5 kW

• Transport Energy use has risen 10.5% in last decade

• Domestic use has risen by over 10%


Energy Tariffs: The UK Perspective

Traditionally tariffs in UK composed of two parts:

A standing charge irrespective of level of consumption

• A unit rate

This adversely affected low consumers.

Since Deregulation the majority of tariffs now have a break point tariff

• No standing charge:

• First N units at a relatively high rate

• Remaining units at lower rate

Has less effect on low consumers.

Some companies have tariffs including both a standing charge and a break point tariff

Energy Tariffs: The UK Perspective

Tariff A B C D

Standing charge (£ per annum) 40 0 0 20

Unit Rate A (pence per kWh) 8.5 12 11.5 9.5

Break Point (kWh) 1000 2500 2500

Unit Rate B (pence per kWh) 8.6 8.8 8.5

0

100

200

300

400

500

600

700

0 1000 2000 3000 4000 5000 6000 7000

Annual Consumption (kWh)

Tot

al C

ost A

B

C

D

0

50

100

150

200

250

300

0 500 1000 1500 2000 2500 3000


Tot

al C

ost

A

B

C

D

50

100

150

200

250

500 1000 1500 2000


Tot

al C

ost

A

B

C

D

Cheapest Tariffs

< 1000 kWh C

1000 to 1500 D

1500 to 4500 B

> 4500 A

• OFGEM controls the prices charged by National Grid (Transco) and the Distribution Companies

• These are natural monopolies.

• Transmission and distribution make up around 25-30 per cent of the average domestic bill.

BUT

• OFGEM also has a duty to ensure the companies can finance investment needed to rewire Britain. • Rewiring is necessary with increased use of Renewables.

The Role of the Regulator

Energywatch: set up by the Utilities Act (2000).

• Funded by Department of Trade and Industry

• Funding comes from the licence fee paid by all energy companies

• It looks after consumers interests and deals with complaints

• Energywatch is accountable to the DTI.

• Energywatch is separate from OFGEM.

• Two organisations work closely together.

• Relationship with OFGEM is set out in a Memorandum of Understanding.

Consumer Protection

Energywatch:

Some key projects currently underway by Energywatch:

• Dealing with Rogue Traders who try to get people to switch suppliers

• Dealing with late and inaccurate bills

• In 2002/2003 Energywatch had

• 45,546 account, billing and other complaints (up from 37,075)*

• 34,027 transfer complaints (up from 30,743)* • 12,960 direct selling complaints (up from 6,991)*

Consumer Protection

•Specialist Metering Companies have entered market since 1998.

•Siemens Energy Services is now the largest independent supplier of metering services.

•It reads gas and electricity meters throughout the UK•Processes customer data and handles the payment of bills.

•Siemens covers nearly 8 million households (around one-third)

•It provides a metering service for •British Gas, •Powergen,• npower, •Scottish Power,• Scottish & Southern Energy.

Metering

• Privatisation• Introduction of Pool• Deregulation• NETA / BETTA• Were designed to reduce charges to consumers and domestic

consumers in particular• Would address the Government aim of reducing number of people

classified as “Fuel Poor”• Deregulation had the greatest effect• Fuel prices have risen substantially in recent 2 years in response to

rises in Whole sale Prices • In Real Terms – prices are now approximately back to pre –

Deregulation Prices.• Government provide all pensioners with £200 heating allowance

each year.

Energy Tariffs: The Question of Fuel Poverty

Energy Tariffs: Provision of Comparison Services

• The Background to Energy Conservation



• How is Energy Conservation promoted in the UK?• Conclusions


• The Domestic Sector

• An example from a large business

How much Carbon Dioxide is each person emitting as a result of the energy they use?

In UK 9 tonnes per annum.

What does 9 tonnes look like?

Equivalent of 5 Hot Air Balloons!

To combat Global Warming

we must reduce CO2 by 60%

i.e. to 2 Hot Air Balloons

How far does one have to drive to emit the same amount of CO2 as heating an old persons room for 1 hour?

3.2 km


• Understandable Language

Energy Saving: Awareness / Education / Advice

A mobile phone charger left on

------ up to 25 kg CO2 a year

Standby on television > 60 kg per year

Filling up with petrol (~£30 for a full tank)

--------- 90 kg of CO2 (5% of a balloon)

A tumble dryer uses four times as much energy as the equivalent washing machine

- use the dryer sparingly

Boiling an extra cup full of water causes the emission of 25 cupfuls of carbon dioxide.

• some see Energy Conservation as a way to save money– less interested when they learn it may take many years to pay back

• others see Energy Conservation as a moral and environmental issue and

will strive to incorporate energy saving at an early stage • many over-estimate the size of their energy bills• several people see themselves as already being energy efficient.

– PowerGen Energy Monitor (October 2004)• many are influenced by other factors

– e.g. double glazing rather than cavity insulation!• Many are unaware of what grants are available

Energy Saving: Perception of Energy Conservation in the UK?

Domestic Consumers

EngineGenerator

36% Electricity

GAS

61% Flue Losses

3% Radiation Losses 36%

efficient

Generation of Electricity with a Gas Engine

EngineGenerator

36% Electricity45% Heat

GAS

Engine heat Exchanger

Exhaust Heat

Exchanger

11% Flue Losses

3% Radiation Losses 81%

efficient

Localised generation can make use of waste heat.

Reduces conversion losses significantly

Combined Heat and Power at UEA


Before Installation: Energy and Carbon Dioxideelectricity gas oil

1997/98 kWh 19895328 351418158 33150kg/kWh 0.43 0.186 0.277 total balloonstonnes CO28555 6537.6 9.2 15101.7 8390

After Installation:

tonnes 2066.6 2698.9 5256.9 255.5 10278 5710kg/kWh 0.43 0.186 0.186 0.277 total balloons

net import 4806100 14510078 28263077 922563import 5783100 Boilers CHPexport 977000 oil (kWh)gas (kWh)CHP generation 15630431demand 20436531

electricity (kWh)

Saving in CO2: 4824 tonnes or 31.9%


Before the scheme

Energy Bill > £1 000 000 per annum

However, the introduction of the New Electricity Trading Arrangements have had an impact

out of balance issues for suppliers to whom exports were sold

After scheme

Annual Saving initially around £ 400 000 per annum

Government targets were to achieve 10 000 MW by 2010

However, number of schemes have declined slightly, and target will not be reached may be difficult to achieve 7500 MW





• Conclusions


• What grants are available

• How is it financed?




• Conclusions


• What grants are available• How is it financed?

Energy Saving: Energy Conservation Grants

Home Energy Conservation Act 1995 - HECA

www.heca.co.uk

Energy Saving Trust: Grants for Domestic Properties - also Transport

www.est.org.ukCarbon Trust: Grants for Businesses

www.thecarbontrust.co.uk

Energy Saving: HECA www.heca.co.uk

Energy Saving: Energy Saving Trust: www.est.org.uk

Energy Saving: Energy Saving Trust www.est.org.uk

Energy Saving: The Carbon Trust www.thecarbontrust.co.uk

Energy Saving: Energy Labelling

Solar Energy - The BroadSol Project

Annual Solar Gain 910 kWh

Solar Collectors installed 27th January 2004

Grants of £500 were available per installation

• UK has made some steps to reduce primary energy• More could be done• Achieved as a combinations of

– Legislation– Energy Conservation GrantsEnergy Labelling– Promotion of Renewable Energy Schemes– Climatic Change Levy – Participation in EU (Carbon) Emissions Trading Scheme– Awareness / Education / Advice

Energy Saving: Conclusions

Key Web Sites:

Home Energy Conservation Act

www.heca.co.uk

Energy Saving Trust

www.est.org.uk

Carbon Trust

www.thecarbontrust.co.uk

National Energy Foundation

www.natenergy.org.uk

Н.К.Тови М.А., д-р технических наукФакультет экологических исследований

Университета Восточной АнглииEnergy Science Director, Low Carbon Innovation Centre

[email protected]

trans european saving-presentation_feb21_2006

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