Energy Networks, Justice & Vulnerability
Energy networks need to evolve quickly to meet UK government energy and climate targets. The UK Government have launched a “Clean Power Mission” to deliver at least 95% low carbon electricity generation by 2030. At the same time, more electricity will be required for newly deployed heat pumps and electric vehicles to meet the UK’s climate commitments. Achieving these goals will require expanding some energy networks (electricity and heat in particular), while scaling down or changing the use of others (gas).
“An estimated 13% of UK households live in fuel poverty”
At the same time, energy poverty and vulnerability in the UK require urgent attention. Some of those households are especially vulnerable (older persons, people with poor health, people on very low incomes and those in poor quality housing).
These groups struggle to cope with sudden increases in energy prices or supply disruptions and face challenges accessing essential energy services, such as heating or cooling, impacting health and well-being. Upgrading networks as part of the clean power mission could play a role in reducing costs and alleviating pressures on vulnerable households, but they may also be disproportionately exposed to disruption associated with the transition.
How do energy networks currently exacerbate poverty and vulnerability?
Network investment and maintenance is paid for through standing charges on bills, a fixed daily amount which is paid irrespective of the amount of energy used. As highlighted by National Energy Action, low-income households often spend less than average on energy and so a higher proportion of what they pay goes towards these standing charges. These charges are particularly problematic for those on prepayment meters, who may have to pay a backlog of such charges before being able to access gas and electricity.
Those living in more remote areas, for example, those living off the gas network are more likely to be fuel poor. These groups often have access to less reliable network services. Growing digitalisation of how people engage with energy could exacerbate vulnerability, for those who lack technical literacy.
How could Net-Zero Energy Networks help to Reduce Energy Vulnerability?
Developing networks that can support the UK’s climate commitments could help to address energy poverty and vulnerability in multiple ways. However, if changes to energy networks are not carefully managed, they could risk exacerbating energy poverty and vulnerability, both through financing evolution and maintenance of networks, and through limiting options that the energy poor and vulnerable have in the transition.
Improved electricity networks can enable widespread heat pump and electric vehicle deployment. This would make household heat and transport costs dependent on the cost of electricity rather than the cost of gas and petrol. As we move to a more renewable electricity system, this will enable households to benefit from lower cost renewable energy de-coupled from the price of fossil fuels.
Heat networks in urban areas can provide lower cost heat to households and businesses where waste heat is available. Government-owned social housing, home to some less affluent households, may be particularly suitable for heat networks, owing to density of households and greater simplicity of contractual arrangements.
There could also be opportunities for energy poor and vulnerable households to be financially rewarded for reducing energy use in ways that support decarbonisation and reduce strains on networks. For example, uptake of energy efficiency measures (eg. home insulation) could reduce overall heat demand.
This could allow smaller heat pumps to be installed, and reduce the need to upgrade some electricity networks. This would mean lower upgrade costs for network operators. With appropriate financial mechanisms, some of those reduced costs could be passed on to customers in the form of electricity bill reductions. Some electricity network operators already offer bill reductions for customers who change times of electricity use to those when networks are not constrained, but these schemes could be broadened to encompass a wider range of measures to reduce energy demand, or become more targeted towards vulnerable households.
How could net-zero energy networks exacerbate energy vulnerability?
However, the benefits of net-zero energy networks may not be available to all, and the costs may not be shared fairly. Those living in rented properties may not have the ability to install heat pumps or electric vehicle chargers to make use of upgraded networks, and those living in flats or houses without off street parking may be unable to benefit from network upgrades to facilitate electric vehicle charging.
Whilst heat networks offer the potential for lower heating costs in social housing, careful regulation is required to avoid overcharging where households rely on this network as their sole source of heat.
If households are unable to use electricity flexibly, flexible tariffs could result in higher costs (eg. those on ventilators, or at home all day). Lack of choice could be particularly problematic for those with limited flexibility, whose options may already be disproportionately constrained.
Without adequate regulation, less affluent households could overcontribute to upgrade and maintenance costs of energy networks to accommodate switching from gas to electricity. More affluent households are transitioning to electric heat pumps and disconnecting from the gas grid. Fewer households attached to the gas grid means that maintenance costs are spread across fewer (less affluent) households, leading to increased standing charges. At the same time, costs of upgrading networks to accommodate more heat pumps are spread across standing charges of all households, including those with gas boilers. Whilst not permitted by current regulation, the gas grid may also be deprioritised for investment and maintenance in the longer term, which could mean less reliable heat for the energy poor who remain connected.
What are the opportunities and challenges around justice in energy network transitions?
Developing procedures that provide opportunities for meaningful input from diverse parties affected by changes to energy networks can help to avoid exacerbating inequalities in the energy transition. Such procedures are particularly important in energy network development, because of the role that networks play in enabling and constraining future options for energy infrastructure.
Local authorities typically consider supporting these members of the community as a key part of their remit. However, some local authorities have highlighted a lack of meaningful engagement of communities as a limitation in current local area energy planning processes. This could lead to a lack of trust in future low carbon energy transitions. The Oldham Net Zero Accelerator, a partnership between the local authority and community energy organization to deliver a local energy transitions whilst fostering community participation to ensure local social, economic environmental benefits, represents an innovative approach to overcoming this challenge.
For energy networks, distribution of future patterns of supply and demand may look different if they are based upon community priorities (e.g. maximising community wealth by installing generation and EV charging facilities on community buildings). If these issues are not considered in network plans, it may not be possible to connect these projects.
Beyond unjust outcomes of a transition, failing to properly take account of procedural and representational justice in the energy transition could jeopardise efforts to deliver the government’s Clean Power mission. Early intimations of this are visible in local resistance to deployment of electricity transmission infrastructure on the East coast. Whilst central government intervention could help to overcome legal challenges in the short term, broader engagement is necessary to deliver the broader net zero transition.
Blog Post: Sheridan Few, Peter Taylor, Richard Oduro, Caitlin Robinson and Lucie Middlemiss
What next?
Through the Supergen Energy Networks project, and in collaboration with the Fair Energy Futures research community, we are planning to further explore issues around energy networks, vulnerability, poverty, and energy justice. In doing so, to highlight challenges and examples of good practice, and to chart a route forward for energy networks capable of delivering net zero, whilst maximising opportunities to address existing inequalities and adhering to principles of energy justice.
If these themes are of interest we would love to hear from you, and would encourage you to sign up for our workshop, location and date TBC.
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