Looking at consumers’ experiences of utilities in 2032, we would expect to them to be using less energy and water. Advances in energy efficiency methods for housing, such as insulating materials, mean people should expect to see a third less energy and water consumption by then.
“In the future, we would no longer expect people to be consumers of energy and water supply companies.They must be users of energy service markets. Customers should not have to become more ‘smart’ about utility efficiencies – their services should.
“As the market becomes smarter, with smarter meters and a better understanding of consumers’ needs, this will lead to more co-operative relationships between householders and utilities.
“By 2032, consumers should know about energy issues. We would hope to see more awareness about household and community generation of energy and the importance of carbon reduction.
“We hope the language of fuel and water poverty will have fallen into disuse. If energy efficiency hasn’t tackled the problems of fuel and water poverty, then we will have failed to take advantage of increases in technology that could transform the lives of those who can least afford to pay.”
Adam Scorer, director of policy and external affairs, Consumer Focus
“We give advice to two million people a year and rising, who are predominantly on low incomes or who rely on welfare benefits. Our top concern is to make sure the amount they are being asked to pay for essential services, such as energy and water, is affordable.
“With energy, this is extremely challenging. We don’t have a system of price controls in place, and with major investment required to deliver energy in the future, we are concerned about how this will affect its cost and how those on the lowest incomes will be able to pay their bills.
“We also hear there are rising numbers of people in debt to their water supplier. A price review in 2014 could result in a commitment to major expenditure, and a further period of price rises. So in the future, water debt could become an issue.
“Over the next 20 years, we need measures in place to assist people in fuel poverty and to help all consumers predict and budget for their utility bills.
“We need action from suppliers, regulators and government to ensure price rises are as low as possible, and that consumers are getting the best deals. We need an end to high-pressure sales tactics and help for those in debt.
“Some people on benefits who live on the lowest incomes could be spending about half their monthly income on energy bills. In 20 years’ time, if that spend is 100 per cent, what are people supposed to live on? We must prevent this happening.”
Teresa Perchard, director of policy and advocacy, Citizens Advice
“For Friends of the Earth, one of the main problems is that we have an energy system that is ‘broken’. It is dominated by a handful of energy companies who have kept us hooked on increasingly expensive fossil fuels, which has driven up bills dramatically.
“This combination of bill rises and an energy system based on fossil fuels and energy waste, alongside centralised ownership, has been bad
for everyone.
“We want a shift into renewable energy, where costs drop rapidly. We would like an opening up of the energy system so that there are more players, including an expansion in decentralised energy. And communities should be recognised as having an important role to play in making energy efficiencies.
“We need to manage the amount of energy we use because energy efficiency and demand management is crucial in tackling fuel poverty and carbon emissions. That is why we are running our Final Demand campaign, which calls for a public inquiry into the power and dominance of the big six energy companies, and how they have kept us hooked on fossil fuels (www.foe.co.uk/finaldemand).
“Another issue is the upcoming Electricity Market Reform, where government must act to stop a new dash for gas, and bring forward a massive round of investment in onshore and offshore wind, wave, tidal, solar and other renewable technologies. In that way we can tackle dangerous climate change and boost the UK’s energy.”
Paul Steedman, senior campaigner, Friends of the Earth
“Utilities need to restore the public’s confidence in them. It does not help that they have distrust of these companies.
“To restore this trust, energy companies must be clearer about the way they engage with consumers. They have to be clearer about how they explain various surcharges on bills, improve how they deal with complaints, and provide information about trends in energy use.
“As customer confidence returns, energy companies will become more about selling, building work and installing energy appliances. More customers could be focused on having a whole energy service, rather than just receiving an energy supply. Businesses will need to be up front, and offer a clear prospectus about what they have to offer.
“This approach could mean a return to the model of utilities we had 25 years ago, where energy companies had showrooms so customers could discuss what gadgets were available to install in their homes. But to take this approach forward, utilities need to research what works for older people, making sure, for example, that central heating control units or smart meters are accessible and easy to use.
“In the future, utilities need to join up more with consumer organisations to support those who are hard up and need help, such as individuals who need more energy because they are immobile and not keeping warm. And energy and water companies should be lobbying government to provide appropriate support to meet exceptional needs.”
Mervyn Kohler, special adviser, Age UK
“Companies want to incentivise people to pay by direct debit because it is in their interests for people to pay in as timely a way as possible. But if you have a low and uncertain income, you cannot pay in this way.
“For those unable to access direct debit schemes and who are paying on a key or a card to get credit, per unit costs are often the highest of any payment scheme. It is unfair that people on the lowest incomes are paying the highest costs for energy.
“Households affected by poverty are on the increase as a consequence of benefits cuts. We estimate that there are 1.5 million children affected by fuel poverty. In 20 years’ time, we want to see this figure reduced.
“The social tariff schemes energy companies deal with are just the tip of the iceberg in terms of the number of families affected by fuel poverty. We would like to see more extensive social tariff schemes.
“There is a tension between how much government and energy companies are responsible for providing adequate support for families to meet their needs, through tax credits and benefits for those unable to work. But companies need to play a greater role, and have more dialogue with government to work out this balance of responsibility.
“We would like progress on improving fuel efficiency of homes targeted at housing occupied by the poorest people. To end fuel poverty, families need enough income, fuel must be affordable, and homes must be energy efficient.”
Tim Nichols, spokesman, Child Poverty Action Group
This article first appeared in Utility Week’s print edition of 24 February 2012.
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