Policy & Research

Energy and Environment

Current Work

Energy Best Deal Scotland

Studies show consistently that consumers who benefit from the choice of energy tariffs currently available are those who are better off, and who have access to the internet, and so have better information. We also know that consumers in lower income, vulnerable and disadvantaged groups switch less often and, at times, less effectively. Our report Switching Off , explores some of the barriers to effective switching faced by disadvantaged consumers.

In response, Consumer Focus Scotland, supported by Ofgem, is currently delivering Energy Best Deal Scotland. Building on the Energy Best Deal project run by Ofgem and Citizen’s Advice Bureaux in England and Wales, our campaign has two elements:

- Targeted information and media work aimed at lower income consumers who have never switched, or have not done so recently, encouraging them to find out whether they find a better deal
- Training seminars for frontline agencies serving low income or  disadvantaged consumers, to help build their capacity to advise consumers about managing their energy

In all cases, we encourage consumers to base decisions on a clear understanding of their current energy consumption and cost, and to use a comparison service accredited to the Consumer Confidence code when looking for a better deal. We also publish information on complaints received by suppliers, relative to their total number of customers, to enable consumers to include customer service in their decisions.

Over the winter of 2010-11, we ran seminars for over 250 frontline advisers, and received excellent feedback on the training we delivered. We will continue with face to face training during 2011-12, and are also planning to make available a web-based version of the training.

Accessible Energy Efficiency Services

The Energy Best Deal Scotland campaign also makes links to energy efficiency services, as a means of making further savings. Our research shows that awareness of energy efficiency behaviours or low cost measures is now very high, and that consumers are increasingly adopting these actions, but also that consumers can face a range of barriers when considering longer term energy efficiency measures. Barriers include understanding of the benefits, the up-front costs involved, living in rented property, and the hassle involved.

We believe that different approaches to the provision of advice and support are needed to engage and support different groups of consumers take action on energy efficiency – although the technical solutions may be similar, ways to engage consumers in adopting those solutions will vary.

Fuel Poverty

For those in fuel poverty, a fully funded service is required. Consumer Focus Scotland is a member of the Scottish Fuel Poverty Forum, which oversees the delivery of the Energy Assistance Package (EAP), the main initiative to address fuel poverty in Scotland. EAP provides advice to everyone, but financial support for energy efficiency work is targeted at those receiving certain benefits.

We recently published Turning Up the Heat, benchmarking fuel poverty information and responses in Scotland against other UK countries.

Area-Based Approaches

For areas where fuel poverty is concentrated, or in rural areas in which economies of scale can be significant, we believe that area-based energy efficiency projects have a role. Our report Energising Communities (link) shows that area based projects can generate momentum and demand for energy efficiency measures at community level, and work best where low cost measures like loft and cavity wall insulation are available free or at very low cost.

Access to Finance

More widely, the UK Coalition Government has announced its intention to widen access to finance to energy efficiency measures through the new Green Deal, a Pay As You Save loan scheme. Consumer Focus believes that this approach has the potential to deliver benefits for many consumers who are able to pay, and welcome the Government’s recognition that funded approaches will still be needed for low income consumers. 

Microgeneration

The Green Deal has the potential, in particular, to widen access to microgeneration in Scotland. We have recently carried out research which shows that microgeneration has a clear role in providing affordable heat for areas without access to mains gas. However, there is wide agreement among stakeholders that up-front costs remain a key barrier to increased take-up.

Wider Policies – Climate Change and Zero Waste Scotland

Consumer Focus Scotland contributes towards wider debates which relate to energy issues. We believe policies on climate change can and should be implemented in ways which emphasise the savings consumers can make, as well as environmental benefits, and we have contributed to Scottish Government policy seminars in this area.

We are also represented on the Programme Board of Zero Waste Scotland, which oversees Scottish Government work to engage consumers in waste reduction, re-use and recycling. This is important to us for two reasons. Firstly, surveys show consistently that consumers identify recycling as the most important action they take to reduce climate change emissions – so waste management services have to work well to make sure consumers engage in longer term activities. Secondly, significant time and money has been committed to changing consumers’ behaviours in relation to household waste, and there are opportunities to learn from and apply this experience to wider work on energy efficiency.