Heating and Energy Use in the UK

Recent research shows that 38% of all energy use in the UK is for generating heat: space heating for homes and other buildings, hot water, cooking and a variety of industrial processes. For this generation of heat, the majority of the energy supply comes from gas, around a quarter comes from oil and coal and only 1% is from renewable sources (DECC, 2009).The majority of domestic energy consumption is for space heating, accounting for around 60% of household energy consumption in

48 2011 (DECC, 2012; Kane et al, 2011; Pendleton & Viitanen, 2011), with hot water as the second greatest requirement, accounting for approximately 15% of the demand (Fell & King, 2012). Affecting this energy consumption, as aforementioned, Shove & Chappells (2005) asserted that expectations of the indoor environment and the comfort within this are immensely demanding to maintain. Arguably, this notion applies in reference to thermal comfort and the demand on space heating at convenience will endeavour to be higher.

In support of this, Shorrock and Utley (in: Druckman, 2008) identified that average internal temperature preference has risen by approximately 6% between 1970 and 2001. Before the introduction of gas central heating in the 1970s, temperatures of 20o_{C or less were more commonly preferred and people used clothing to regulate} thermal comfort more to avoid high energy costs. In contemporary times, people prefer temperatures of 23o_{C to 25}o_{C, achieved through greater energy}

consumption for heating (Dowson et al, 2012). In addition, space heating is highly dependent on technical factors such as the type of dwelling, insulation levels and the efficiency of the heating system. Dowson et al (2012) point out that the major issue of the existing housing stock is significant wastage of heat through poorly

performing solid walls, single glazing and non-insulated buildings.

The combined savings from insulation and heating efficiency improvements already implemented have reduced domestic space heating by an estimated 41.2 million tonnes of oil equivalent. Without these improvements it is estimated that energy consumption would have been twice as high as its current levels (DECC, 2012). However, the issue remains that the UK faces a major challenge to improve the thermal performance of its existing housing stock (Dowson et al, 2012). The reason for failure of reaching the Decent Homes Standard is often due to poor thermal comfort, because of outdated heating systems, low or no insulation, single glazing and draughty doors or windows (Hamza & Gilroy, 2011).

Global energy supply still predominantly relies upon fossil fuels, such as coal, oil and natural gas (Bahaj, 2002). Affluent regions of the world are accustomed to an economic and social lifestyle based on an abundance of energy and demand is

49 increasing (Bahaj, 2002). Much debate has ensued over the remaining availability of fossil fuel resources and this has long underpinned the need for more sustainable energy usage. Internal production of fossil fuels is decreasing in the UK (DECC, 2009), with coal and oil plant closures by 2015, posing a threat to security of supplies (Ofgem, 2009)The nation is increasingly reliant on imports, with the National Grid predicting that 70% of gas demand will be from imports by 2018 (National Grid, 2010). However, it is not just the diminishing of resources that poses a threat to energy security but geopolitical issues (Umbach, 2010).

Jenkins (2010) highlights that new concerns about energy security extend to natural gas, of which international trade is increasing. Russia holds more than 25% of the world’s natural gas reserves, coal reserves and 6% of oil reserves (Umbach, 2010), thus making Russia a dominant force in energy availability, delivery and cost. After the gas conflict in 2005-2006 between Russia and Ukraine, where Russia cut back gas deliveries affecting EU member states, security of energy supplies in Europe became of greater focus (Ofgem, 2009; Umbach, 2010). The energy regulator, Ofgem, has now warned that the UK is at risk of disrupted supplies (Ofgem, 2010). Increased reliance on imports puts the UK in a more vulnerable position,

susceptible to instable international markets and price fluctuations. Fuel prices can rise as a result of world markets or as a direct or indirect effect of policy

(Boardman, 2004). Since 1998, energy prices have been increasing (Ofgem, 2009); major energy companies announced price increases to domestic gas and electricity nearly a decade ago (Boardman, 2004) and it is predicted that gas prices will rise a further 34% and electricity another 54% over the next decade (Ofgem, 2009).

Recent increases in energy prices have substantially added to the number of fuel poor households (Smith & Swan, 2012). For many years, fuel poverty was defined as a household which is required to spend more than 10% of their income on fuel to maintain an adequate level of heating (Bahaj & James, 2007). An adequate level of heating is outlined as achieving 21o_{C in the living room and 18}o_{C in all other}

occupied rooms, as stated by the World Health Organisation (Bahaj & James, 2007; Boardman, 2010). The Department for Energy and Climate Change has recently released a new policy framework for tackling fuel poverty which redefines what

50 constitutes a fuel poor household. A household is now deemed to be fuel poor if their income is below the poverty line (taking into account energy costs) and their energy costs are higher than is typical for their household type.

It was reported in 2004 that the Government’s intervention to reduce, or rather eliminate, fuel poverty was inadequate and deprioritised for funding. It was claimed that the majority of reductions in fuel poverty households from 1991 to 2004 were due to higher incomes and lower fuel prices rather than greater energy efficiency (Boardman, 2004). Nowadays, ensuring all households are adequately and affordably heated is a priority of current UK energy policy (ECI), as is evident through the recent release of the updated strategy from DECC, “Fuel Poverty: A Framework for Future Action” with the revised definitions (DECC, 2013) Prior to this review, the 2000 Warm Homes and Energy Conservation Act stipulated a legal obligation in England to ensure that ‘as far as is reasonably practicable, persons do not live in fuel poverty’ by 2016 (Boardman, 2007; Guertler, 2012). As part of the consequential UK Fuel Poverty Strategy of 2001, a focus on vulnerable households and the implications of fuel poverty on health was a clear priority. An interim target of ensuring that no older householder, family with children or householder with a disability or long-term illness should be at risk of ill health due to a cold home by 2010 was prioritised (Guertler, 2012).

The number of households in fuel poverty is subject to uncertainty against the previous definition; however, research suggests this could be between 3.5 million and 5.5 million households (Guertler, 2012; Jenkins, 2010; Smith & Swan, 2012) which at the higher end is around 21% of the total housing stock (Smith & Swan, 2012). Fuel poverty in the UK remains a real problem in the social housing sector (Bahaj & James, 2007), with approximately 16% of UK households being fuel poor and living in social housing (Jenkins, 2010). As may be expected, fuel poverty has significant implications for the thermal comfort of household occupants and, as discussed previously, this has repercussions for health. Healy & Clinch (2002) reported a study which identified that over half of older people live in inadequate household temperatures during winter against WHO guidelines and there is a significant risk of people living in colder conditions in order to save money. For

51 example, over a third of older people admit to not heating their bedroom,

bathroom or living room in cold weather in order to save money (Hamza & Gilroy, 2011).

However, research has indicated that being in fuel poverty does not necessarily directly result in people living in conditions that are too cold. It has been identified that some people in fuel poverty will still be warm because they buy and use a lot of energy (Roberts, 2008): they will heat their homes enough to achieve adequate thermal comfort, regardless of affordability. Yet, this of course puts them further into debt and further into fuel poverty. Whilst the occupant would not be risking their physical health through inadequate thermal comfort, this could have seriously detrimental effects on other aspects of their lifestyle with consequences to their health and wellbeing.

Higher energy prices are being experienced and, as outlined, are expected to rise; therefore, this can only be expected to exacerbate the fuel poverty issue. Older, retired people living in social housing largely have a fixed pension income, so achieving a higher income to combat higher fuel prices is not possible. The current ‘answer’ to fuel poverty has been through winter payments for vulnerable

households to help with their energy bills (Jenkins, 2010). Winter Fuel Payments are paid to all people aged 60 or over, regardless of their circumstances (Hamza & Gilroy, 2011). These are payments of £250 to household occupants aged 60-79 and £400 for household occupants aged 80 and over (Hamza & Gilroy, 2011). Whilst helping to address fuel poverty, it is clearly not the answer with the current

statistics of those remaining in fuel poverty. This leaves addressing energy efficiency as the critical path to eliminating fuel poverty, as is heavily encouraged by

researchers. Jenkins (2010) proposes that fuel poor homes in the social housing sector may be a suitable area to concentrate on in attempting mass-scale retrofit schemes across the UK.

Two main factors continually presented as reasons for the UK housing stock being inadequate and requiring improvement are fuel poverty and domestic carbon emissions, as is clear over the preceding review. There is a synergy between the

52 two issues of abating fuel poverty and reducing carbon emissions which is

recognised (Smith & Swan, 2012) and highlights the value of increasing the thermal efficiency of properties in addressing both problems simultaneously (Jenkins, 2010). Unquestionably, to tackle energy efficiency and thus impact fuel poverty and carbon emissions, new build properties can be built with this in consideration and to a better standard, as is now policy and regulation. However, as has been previously stated, over three-quarters of the housing stock in 2050 is already in existence and new build properties only add 1% to the housing stock each year (Hamza & Gilroy, 2011). For these reasons, it is suggested that energy efficient refurbishment or retrofitting carbon-saving measures on a large-scale is necessary (Jenkins, 2010; Smith & Swan, 2012).