How to end Energy Poverty? Scrutiny … Greiner - How to...27 ITRE Energy Poverty Workshop Benjamin...

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www.oeko.de How to end Energy Poverty? Scrutiny of current EU and Member State Instruments Presentation of study results Benjamin Greiner ITRE Workshop on Energy Poverty Brussels, 9 November 2016

Transcript of How to end Energy Poverty? Scrutiny … Greiner - How to...27 ITRE Energy Poverty Workshop Benjamin...

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How to end Energy Poverty? Scrutinyof current EU and Member StateInstrumentsPresentation of study results

Benjamin GreinerITRE Workshop on Energy PovertyBrussels, 9 November 2016

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About the Study

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de About Us

● Founded in Freiburg, 1977

● Research and consulting in allenvironmental fields

● Committed to sustainabledevelopment

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de The Team

Katja Hünecke, Project Lead ([email protected])

Hannah Förster, Senior Researcher ([email protected])

Tanja Kenkmann, Senior Researcher ([email protected])

Katja Schumacher, Senior Researcher ([email protected])

Benjamin Greiner, Junior Researcher ([email protected])

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de Aim of the Study

Commissioned by ITRE, beginning of 2015

• Drivers of fuel poverty

• Survey of current existing policies

• Identifying effective measures

• Identifying bottlenecks

• Suggestions & opportunities for EU action

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de Methodology

• Explorative study

• Comparative case studies of 8 Member States

• Gathering of economic indicators, building performance,energy costs, and heating requirements

• Expert interviews and publically available reports to assesspolicy effectiveness

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Energy Poverty in Member States

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de Prevalence of Energy Poverty in Europe

Source: Association for the Conservation of Energy (2013): Energy-Bill-Revolution – Fact File: The Cold Man of Europe.

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de Case Selection

• Geographically differentiated (North / South)

• Economically differentiated (High income / Low income)

• EU-15 and post-2004 Member States

Selection: ES, EI, FR, UK, IT, PL, BG, EL

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de Generic First Findings

• Energy prices on the rise in all Member States

• Energy poverty loosely connected to macroeconomicindicators

• Energy poverty acknowledged as problem in most MemberStates

• Specific policies present in very different forms, but not in allMember States

• Very different track records of policies

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de Spotlight: Ireland

• Definition via expenditure approach

• 52% of poorest decile of households affected

• Better Energy, Warmer Homes: Funding of efficiency measures

• Household Benefits Package: Earmarked benefits

• Fuel Allowance: Seasonal benefits

• Unorthodox Measures: Better Energy Communities, Oil StampsSaving Programme

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de Spotlight: France

• Expenditure definition & a basic right to energy

• 36% of poorest quartile of households affected

• Energy Solidarity Fund: obligations for utility companies

• Social tariffs for electricity & gas

• Habiter Mieux: home improvement scheme, implemented bylocal authorities

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de Spotlight: Bulgaria

• Steep energy prices, low incomes, outdated building stock

• 50% of population at risk of poverty

• Lack of data and resources

• Heating covered via generic social policy

• Building improvement measures unrelated to poverty

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de Spotlight: UK

• Many buildings with low energy performance

• Over 30% of population outside of England affected

• Elaborate methodology (LIHC) and data collection

• Focus on energy company obligations

• Financial support to low income households

• Further devolvement of implementation in 2017

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A closer look at the results

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de Our Analytical Approach to Policies

Dubois, U. (2012). From targeting to implementation: The role of identification of fuel poorhouseholds. Energy Policy, 49, pp. 107–115. doi:10.1016/j.enpol.2011.11.087.

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Three stages to designing a social policy:

TargetingDefining theFuel Poor

IdentificationFinding the Fuel

Poor

ImplementationHelping

Effectively

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de Challenges: Options for Targeting

• Expenditure-based: Simple, but does not take cost-cuttingand differences in housing stock into account

• Low Income, High Costs: Accommodates for individualdifferences in heating performance, but enormous demand onbuilding data and labour-intensive

• Social policy: No additional policy effort, but very inflexibleregarding individual situations

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de Poverty and Fuel Poverty

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LowIncomes

InefficientHousing

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de Challenges: Identification

Frequently underestimated step in policy

Difficult due to

• lack of detailed data about housing

• stigma of receiving benefits

Positive: Implementation by local or neighbourhood authorities(FR, UK)

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de Results matrix

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Problem Definition IE FR UK EL IT ES BG PL EUNational definition for Energy Poverty yes yes no no no no no noData collection and investigation yes yes neutral neutral no no yes yesNational strategy and coordination yes yes yes yes neutral neutral no

Policy Design and TargetingDefinition of target group clear and adequate yes neutral yes no yes no no

Short-term or long-term strategy both both bothshortterm

shortterm

shortterm

mainlyshortterm

mainlyshortterm

marketefficiency

Identification and FundingIdentification of and awareness among target group neutral no neutral neutral no yes no noAdequate funding for PaMs neutral no no neutral no no no neutralMonitoring, evaluation, transparency neutral yes yes no no no yes neutral no

Implementation

Effectiveness of policylowlevel

no no

Long-term improvement of distribution neutral neutral no no no no no no no

yes

neutral

no

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de Effective Policies (1)

Social electricity and energy tariffs (EL, ES)

PRO

Effective improvement if identification works

CON

Financial pressure on energy suppliers

Does not tackle root causes

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de Effective Policies (2)

Support for building renovation (FR, UK)

PRO

Solution to root cause of energy poverty

Side benefit of energy and emissions savings

CON

Hard to allocate sufficient funds

Low performance does not equal fuel poverty

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de Effective Policies (3)

Allowances for energy to low-income households (IT, BG)

PRO

Low administrative burden

CON

May not target fuel poor efficiently

Does not tackle root causes of low income and buildingperformance

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de Challenges for Member States in General

1. Availability of data on housing quality

2. Identification of particular fuel poor households

3. Acquisition of sufficient funding

4. Implementation of long-term solutions

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Recommendations

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de Options on the EU level

1. Provide standardised and extensive data on buildingperformance, deepen the work of BPIE

2. Strengthen the topic in existing channels, such asCitizens’ Energy Forum

3. European minimum standards for building performance

4. Observing subsidiarity

5. Provide funds via existing means

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ITRE Energy Poverty Workshop│Benjamin Greiner│Brussels│9 Nov 16

Contact

Benjamin GreinerResearcher

Öko-Institut e.V.Büro BerlinSchicklerstraße 5-710179 Berlin

+49 (30) 405085 - [email protected]

Katja HüneckeProject Lead

Öko-Institut e.V.Büro DarmstadtSchicklerstraße 5-710179 Berlin

+49 (6151) [email protected]