Energy People Trust

Meeting with Ken – University of Glasgow, Urban Studies Department, and Ann – ScottishPower Energy People Trust.  Meeting at Urban Studies Department, Bute Gardens, Glasgow

Using Glasgow’s underground train, I made my way to the University of Glasgow to visit Professor of Housing Economics, Ken Gibb, and Ann Loughrey, Head of Corporate Social Responsibility from ScottishPower, one of Britain’s six large energy companies. We met in Ken’s office at the Urban Studies Department.

Ken indicated that he completed some research on fuel poverty several years ago and is currently a Trustee of the ScottishPower Energy People Trust.  Ann outlined her 25 year association with fuel poverty and energy efficiency. After working as a campaigner for many years, Ann joined Scottish Power in 2005 and helped establish the Trust.

Ann’s account of the Scottish developments with regard fuel poverty, like previous accounts, began in the 80’s and was a direct response to vulnerable people paying high fuel prices, while suffering unemployment and dire heath consequences. Small local groups began campaigning, and the installation of loft insulation and security measures, paired with some landscaping, provided through training programs linked the needs of the community with the desire for urban and community regeneration/renewal. Many small business started at that time, and some are still operating today. It was from this foundation that a wider perspective on fuel poverty grew in the 90’s.

Ann provided information on the need for fuel poverty to be defined in the early days. Brenda Boardman supplied the definition of 10% of income that has become well recognized. Ann explained that campaigners strive for this to be recognized as 10% of disposable income (after tax and other expenses are made). This definition for fuel poverty found wide recognition and acceptance, and even made it into the dictionary.

In the late-1990’s campaigners were pushing for the major political parties to sign up to a target to eradicate fuel poverty. New Labour, with Tony Blair, signed up, and when they won office committed to the election promise, by designing a long term goal to eradicate fuel poverty (this was one of many intergeneration goals, concerning aged care, child poverty, and student issues). Out of these targets grew the grant schemes, and eaga. Authority was devolved to Scotland and Wales at this time, so responsibility for fuel poverty was transferred from the central administration, although Westminster kept power over benefits/tax and energy policy.

In April 2009, the new Scottish Parliament reviewed and introduced the Energy Efficiency Scheme, with four stages. First, phone information regarding suppliers and entitlements. Second, measures such as light bulbs and insulation. Third, what else is required, income maximization services. Fourth, what government can provide.

Ann outlined how Labour observed the numbers in fuel poverty halved. The number in fuel poverty dropped to 280 000 in Scotland and has since rebounded to 850 000.  Upon their election Labour tidied up the benefit system and introduced new benefits to lift real incomes, which went some way to reducing the number of people in fuel poverty (50% of drop was income related). Fuel price drops accounted for 35%, and energy efficiency measures accounted for 15%. All wiped out with the energy price hike.

As government saw the number in fuel poverty climb, they moved to place the responsibility on utility companies (who were making massive profits). Four of the six big utilities are foreign owned. The introduction of social tarrifs, trust funds, energy efficiency measures, and partnerships emerged from this point.

An argument can be put that governments have “picked all the low hanging fruit”, the easier measures such as wall and loft installation have been completed, and the harder aspects of tackling fuel poverty are now being faced. Ken indicated that social housing has had massive investment over 20 years, and grant schemes such as Warm Deal have been used in the private sector to lift housing quality substantially. The issue is what type of fuel poverty is left.

Scottish Power Energy People Trust emerged as an independent charity in 2005 – has distributed GBP6.5million in 3.5 years. Ann indicated that independent research helped establish the need for a trust. The Trust funds front line agencies through four mechanisms– money for crisis funds, funding for benefit assessment/income maximization programs, money  for energy efficiency initiatives, and funds for research. The most popular stream is benefit/income maximization, with some applicants to the fund claiming for every GBP1 injected they can assist clients to claim GBP20 (there is reportedly GBP10billion unclaimed each year). The priority for the trust is agencies working with families with children, and young people living independently for the first time. (Historically the aged have been the primary target of initiatives).  The energy regulator, ofgem, evidently reports that this Trust is an example of best practice.

A contemporary complication revolves around the pressures felt by Housing Associations/Local Authorities managing social sector housing, as tenants and others request higher standards of accommodation in new builds. This can often result in the building of newer properties with ensuites and comparable to that found in the private market (in order to compete), but it brings new issues of condensation/dampness and extractor fan installation etc. The issue is whether the costs of  additional designer elements may have been better spent on solar thermal hot water etc.

Ken indicated that with devolution of authority, came some barriers to financial management. Ken explained that the Scottish Parliament can not borrow money, where as Local Authorities have some limited borrowing capacity. Evidently, Gordon Brown (now embattled Labour Prime Minister), when he was Chancellor of the Exchequer, introduce a Prudential Borrowing Scheme that paved the way for low cost borrowing by local authorities if they had an income stream, such as rent.

New issues. There exists some discontent concerning the benefits private sector landlords enjoy through the provision of fuel poverty programs. That is, although the tenant of the day can live more comfortably, the benefit ultimately remains with the landlord in the form of a property that has been improved. The concern mainly rests with landlords who increase the rent on the property because of the capital improvements.

I finished the session by asking Ann, “In the beginning, in the 1980’s, what did it take to build momentum around this issue?”. Ann indicated that it begins with “campaigning”, and requires sympathetic politicians to come on board. Ann explained that the “All Party Warm Homes Group” was fundamental in building momentum, and providing access to MP’s, and key players. Use journalists, and sell the message across government departments – the health benefits, the education benefits, the social inclusion benefits, the employment benefits, the infrastructure benefits (increasing life expectancy of the housing stock). This message continues to appear; small groups of committed people drive the issue initially and build public and political support to get action.

~ by jerrimfellow09 on June 10, 2009.