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Minutes of CFP meeting, January 2024

Updated 8 July 2024

Committee on Fuel Poverty (CFP) meeting minutes – 29 January, 2024

Members present:

• Caroline Flint (Chair)
• Anu Singh
• Liz Bisset
• Anthony Pygram
• Gordon McGregor
• Belinda Littleton

Invited guests in attendance:

• Officials from the Department for Energy Security and Net Zero (DESNZ)
• Jenny Saunders (Affordable Warmth Solution, AWS)
• Gareth Powell (AWS, Newcastle University)
• Jeremy Nesbitt (AWS)

Agenda item 1: Chair’s welcome, members interests and minutes of last meeting

The Chair welcomed members and thanked them for their engagement. No new member interests declared. Members cleared minutes for November 2023.

Agenda item 2: Stakeholder engagement

Members noted additional stakeholder engagements to be added to the engagement log.

Agenda item 3: Affordable Warmth Solutions

Representatives from Affordable Warmth Solutions and Newcastle University (hereafter referred to collectively as AWS) reported on an evaluation conducted of the Warm Homes Fund (WHF). This evaluation aimed to recognise key principles which would help with future program design. AWS noted the WHF evaluation objectives, fund criteria, and how the fund could evolve. AWS noted that the WHF evaluation provides a blueprint model for future schemes identifying value for investment.

AWS introduced the session and presented the aims and applicability of findings. AWS anticipated that successful contributing principles identified in this project could be incorporated into ministerial decisions and future scheme design. The evaluation communicates a link between advising on good policy and effective scheme delivery.

The Committee asked about previous running costs of system users. AWS representatives clarified that the decrease in running costs for users was a decrease in the modelled amount of heating. AWS noted 80-90% of users were using inefficient, outdated electric heaters.

The Committee asked if a fabric first approach was used regarding electrically heated homes. AWS confirmed a fabric first approach was used where possible and that users on outdated electric heaters and with poor insultation were targeted. AWS noted those who required a package of support (e.g. insulation measures and improved heating) were targeted first, allowing for a more holistic approach and a singular customer journey.

The Committee asked if there was an increasing number of self-disconnections. AWS noted that they had considered which energy bill data year to use. AWS considered the timing of the spike in energy bills last year and used a constant set of prices from 2020-21. Rather than trying to model every scenario, AWS modelled set price increases (e.g. 100%, 200% increase). AWS noted a negligible CO2 increase as the households targeted were not high emitters.

AWS commented on Figure 7 of the AWS Summary Report and noted that more homes have lower running costs because of energy efficiency improvements.

The Design of Energy Efficiency Programmes (DEEP) blueprint highlights the lessons learnt, core elements and key stakeholders for designing energy efficiency programmes. AWS noted that learning from each energy efficiency programme is key for designing the next and highlighted the ‘Core Elements’ and ‘Guiding Principles’ as key.

The Chair thanked AWS for the presentation and asked if they had given consideration of how DEEP blueprint could be applied to different schemes and how it could be scaled up. AWS said they have a framework for thinking across programmes but have not quantified its impact on a wider scale.

The Committee asked about central heating systems being replaced by electric heating systems and what the implications are moving forward. AWS replied that as the Warm Homes Fund was designed seven years ago it made sense at the time to include gas boilers; however, AWS noted DEEP blueprint principles can be used for any technology and new funds have applied lessons learnt from heat pump delivery.

The Committee asked for more information regarding Figure 9: Distribution of Properties in the AWS Summary Report.

The Committee asked if there was a single approach to targeting, whether EPC bands A to D were included as part of the process, and if AWS had learnt anything from different approaches. AWS explained they had included homes in EPC bands A-D. In rural areas, AWS targeted park homes and found major benefits including cost effectiveness and the ability to build trust with households. In urban areas they allowed local authorities a degree of flexibility with eligibility. AWS noted the success of the Energy Company Obligation (ECO) Local Authority Flex scheme. ECO LA Flex was dependant on local authorities having capability and capacity to deliver schemes (whether in-house or outsourced).

The Chair asked what AWS would consider key priorities for future fuel poverty strategy in England. AWS highlighted: continuity of funding; flexibility in eligibility criteria allowing for community development; minimal administrative burden.

The Chair thanked the AWS team for their time and presentation.

Action: AWS to send CFP a readout and explanation of Figure 9: Distribution of Properties found in AWS Summary Report.

Action: AWS to send some examples of experience of local authority delivery of ECO LA Flex and other local delivery schemes

Agenda item 4: Minister Solloway update

Minister Solloway thanked the CFP for the continuing contribution and welcomed the CFP’s feedback, particularly regarding managing debt, the targeting of support and supporting fuel poor households living in the private rented sector.

CFP members shared thoughts on current priorities and discussed work on the upcoming Fuel Poverty Strategy Review.

The Committee provided updates on their recent work, including consultations they had fed into, and their annual research project.

Agenda item 5: Fuel Poverty Strategy Review

DESNZ presented an update on the Fuel Poverty Strategy Review.

Agenda item 6: DESNZ update

DESNZ gave an update of current fuel poverty schemes and priorities, reflecting on the discussion with the Minister.

AOB

The next formal meeting will be held on 25 March 2024.