How the green levies help reduce fuel poverty

There has been a large amount in the media recently over the “green levies” on fuel bills, or as some refer to them, the “green taxes”. On Wednesday the 23rd October this became more prominent politically after an announcement in Prime Minister’s Questions to review them. However, there is a large amount of misunderstanding and misinformation regarding these levies.

The first question is what percentage of the average bill is actually due to these levies? The Department of Energy and Climate Change (DECC) has calculated the energy bill split, which is shown in Figure 1. As can be seen, the “green levies” actually make up a small amount of the bill [1].

UK average dual fuel breakdown from [1]Figure 1: UK average dual fuel breakdown from [1]
However, an important question to ask is; what are these levies actually for? They are split up into three main parts:

  • Fuel poverty alleviation measures (£61 a year – 4.8% of an average dual fuel bill)
  • Renewable Energy Support (£37 a year – 2.9% of an average dual fuel bill)
  • Climate Change Policies (£13 a year – 1% of an average dual fuel bill)

With the figures of how much these measures cost, now let’s look in more detail at each of them.

Fuel poverty alleviation measures (£61)

The issue which is missed in most of the media is that the energy efficiency parts of the bills are spent on lifting people out of fuel poverty. This £61 is spent on three different measures:

  • Warm Home Discount (£11 a year – 0.9% of an average dual fuel bill)
  • Smart Metering and Better Billing (£3 a year – 0.2% of an average duel fuel bill)
  • ECO Energy Efficiency Scheme (£48 a year – 3.8% of an average dual fuel bill)

Warm Home Discount Scheme

This is for elderly people who have a low income. Specifically, it is for people who are:

  • 75 or over and getting the Guarantee Credit element of Pension Credit (even if you get Savings Credit)
  • Under 75 and only getting the Guarantee Credit element of Pension Credit (you won’t qualify if you also get Savings Credit)

This discount can be up to £135 on bills. The removal of this £11 on everyone’s bills would mean pensioners on low incomes would be pushed further into fuel poverty. More information on the shceme can be found here: The Warm Home Discount scheme page on gov.uk

Smart Metering and Better Billing

The £3 that the average user pays towards the energy companies a year for Smart Metering and Better Billing is spent on the roll out of smart meters, which will be completed by 2020.

The ideas behind this are that they will allow more accurate bills, and also allow people to understand how they are using energy in their own home with more clarity, and so save energy. It is intended to help with reducing fuel poverty, but also it will help the electrical networks through giving a better picture of where energy is being used and where it is not.

ECO Energy Efficiency Scheme

This is the major part of the “green tariffs” which are opposed by certain parts of the media. The idea of ECO is to insulate the homes of those in the worst fuel poverty. It replaced the CERT and CESP schemes which insulated many homes across the UK. If you had free cavity wall insulation and loft insulation given to you in the past few years, this is how it was funded.

The breakdown of measures provided by CESP is given below (taken from [2])

Table 1: Measures given out by CESP
Measure Type Measure Number of measures
Insulation Loft insulation 23,503
Cavity wall insulation 3,000
Solid wall insulation (internal) 5,002
Solid wall insulation (external) 75,255
Draught proofing 13,010
Glazing 21,779
Flat-roof insulation 1,791
Under-floor insulation 151
Heating Replacement boiler 42,898
Heating controls provided with a new heating system 60,016
Fuel switching 11,066
District Heating District heating (connection to) 6,459
District heating (upgrade) 11,247
District heating meter for individual house billing 6,026
Microgeneration Heat Pump 594
Solar Water Heater 485
Photovoltaic panel 11,546
Behaviour Home energy advice package 94
Total 293,922

The breakdown of measures from CERT are given in [3]. These covered energy heating, lighting and energy efficient appliances. The energy companies were allowed to decide how to spend the money, but it had to result in saving energy, and over 40% had to go to priority groups (pensioners and those on particular benefits). The insulation measures were:

Table 2: The insulation measures given out from CERT - please note there were many other measures as well
Cavity wall insulation 2,568,870
Professional loft insulation 3,897,324
DIY loft insulation (m2) 112,850,996
Solid wall insulation 58,916
Draught proofing 23,986
Window glazing (m2) 34,590,263
Hot water tank jackets 436,958
Radiator panels (m2) 259,851
Flat roof insulation 701
Fuel switching 108,516
Shower regulators 9,653,441
Replacement boilers 31,986
Heating controls 1,454,336
Communal heating 92

Other measures included 303 million light bulbs, which OFGEM stopped on the 1st of January 2010 over concerns because it was not clear whether they were being used and research suggested enough had been distributed to satisfy demand. Further measures included renewable energy systems and energy efficient appliances.

With ECO, the government now feels that enough of the “easy” to insulate homes have been improved. There are many homes which are more difficult to insulate, such as those with solid walls and no cavities. ECO is designed to help those in “hard to treat” homes. The energy companies are obligated to use this money to “provide measures which improve the ability of low income and vulnerable households”, ie. People in fuel poverty.

An example of these improvements can be seen in Figure 2 below taken from [4]. These show the difference between a typical post war system built house without insulation, and the next door neighbour which has external wall insulation. As can be seen, the loss of heat from house B is significantly reduced**.


Figure 2: Thermal image of Wimpey No Fine system built homes. "A" has no insulation and "B" has external wall cladding. Homes like "A" are to be targeted under ECO using measures like "B" has.Figure 2: Thermal image of Wimpey No Fine system built homes. “A” has no insulation and “B” has external wall cladding. Homes like “A” are to be targeted under ECO using measures like “B” has.

Renewable Energy Incentives (£37)

  • Feed in Tariffs (£7 a year – 0.6% of the average dual fuel bill)
  • Renewables Obligation (£30 a year – 2.4% of the average duel fuel bill)

Feed in Tariff

Obviously, the main driver for these is to tackle climate change, but that is another subject for another blog. The Feed in Tariff has led to a major increase in jobs in the UK, all for (on average) £7 a year per household. Destroying the Feed in Tariff so save £7 a year per household would lead to massive redundancies in the domestic renewable energy installer market – as well as the supporting industries. Destroying businesses and encouraging redundancies will clearly throw more families into poverty.

An important point which is not considered when criticising the Feed in Tariff is that many housing associations have used the Feed in Tariff to allow them to roll out renewable energy to residents. Many social housing areas in the North East of England now have solar panels, which can reduce residents energy bills by £65* a year. This is an example of how the Feed in Tariff is used to reduce fuel poverty. Housing Associations involved in such schemes include South Tyneside Homes, Your Homes Newcastle and South Tyneside Homes.

Renewables Obligation

Moving onto the Renewable Obligation, increasing renewables will also insulate the UK against the ever increasing wholesale costs of fossil fuels. This is one of the economic arguments for renewable energy.

Carbon Taxes (£13)

£13 a year from the average bill go to actual taxes on carbon. These go to the European Emission Trading Scheme (EU ETS) and the Carbon Floor Price. Tackling climate change is vitally important, but the purpose of this blog is not to discuss these issues, it is to discuss how “green levies” are spent. Approximately £1 a month per household goes to actual real carbon taxes.


The majority of Green Levies go to schemes to reduce fuel poverty. By removing this funding, those who are most vulnerable will have no support to improve their homes and lift them out of fuel poverty. Renewable Energy funding will help insulate the UK against future wholesale gas prices, and is also used by housing associations to fund schemes to lift residents out of fuel poverty. The only real “green tax” is the £13 which goes to the EU ETS and Carbon Floor Price. Removing that won’t really help with bills.

Essentially, removing the “green levies” component of energy bills will remove assistance for those in fuel poverty.

For more information on hard to treat homes and fuel poverty, please see: ERDF Social Housing Energy Management Final Project Report

Works Cited

[1] Department of Energy and Climate Change, Estimated impacts of energy and climate change policies on energy prices and bills, London: UK Government, 2012.
[2] OFGEM e-serve, Community Energy Saving Program Update, London: UK Government, 2013.
[3] OFGEM e-serve, The final report of the Carbon Emissions Reduction Target (CERT) 2008-2012, London: UK Government, 2013.
[4] Narec Distributed Energy, ERDF Social Housing Energy Management Project – Final Project Report,  Blyth: National Renewable Energy Centre, 25th October 2013


[*] This is based on a price of £ 0.146057/kWh for electricity, based on data from www.energy.eu. The energy yield of a photovoltaic system pointing south at an incline of 35° based in Newcastle is 902 kWh/year. We assume only half this electricity is used by the resident and the rest exported.

[**] It is important to state the example below was paid for by the European Regional Development Fund (ERDF), not ECO, but it is a good image of the type of work ECO is designed for.

Solar Energy UK

Solar Energy UK logo
Nick Davies from Narec Distributed Energy will be speaking at Solar Energy UK on the 10th of October, giving a seminar on the integration of photovoltaic and solar thermal systems with other technologies. Based on experience and independent testing results, Nick will give an overview of the advantages and disadvantages of current “add-on” technologies on the market for these systems.

Solar Energy UK exhibition (formerly Solar Power UK) is the essential solar networking platform in the UK.  By bringing together the entire industry associated with PV, solar businesses have the opportunity to make the changes necessary to drive the industry forward and ensure its sustainability for the future. In 2012, over 4700 visitors and 181 exhibitors from across the globe attended Solar Power UK making it the largest solar dedicated event in the UK. Now in its fourth year, Solar Energy UK 2013 is the latest in a series of events brought to the UK’s industry by Solar Media Ltd. The event will expand to include a Distributed Energy Zone to reflect all sectors committed to the local generation, storage, use and transmission of energy. Energy storage products are included among these solutions making this event.

Nick will be speaking in the Technology Theater area of Solar Energy UK on Thursday the 10th of October from 10.45am to 12.15pm, his seminar is titled “Innovative technologies – can they improve solar performance in housing stock?”. Other organisations giving seminars in the Technology Theatre over the three days include the Department of Energy and Climate Change, Solar Trade Association and the MCS PV Working Group.

For more details on Solar Energy UK, including a full detailed seminar timetable, please check the Solar Energy UK website


Air Source Heat Pumps vs. Gas Boilers


Air Source Heat Pumps

Air source heat pumps take energy from the air outside of a buildings through a process using a refrigerant fluid. The measure of performance of a heat pump is called the COP, which is the comparison of the amount of energy used in the system (compressor, pumps etc) against how much energy it takes out of the air. The higher the COP, the better the system. This blog looks at the values for the COP which are required for an air source heat pump to perform better than a gas condensing boiler system in terms of reducing greenhouse gas emissions and fuel costs.

Greenhouse Gas Emissions

Air source heat pumps run on electricity. According to the UK Government’s “2012 Guidelines to Defra / DECC’s GHG Conversion Factors for Company Reporting” the average value for greenhouse gasses emitted per kWh of electricity is 0.54702 kgCO2eq/kWh, whereas for gas this is 0.20435 kgCO2eq/kWh. If we assume that the alternative to a heat pump would be a new gas boiler at 90% efficiency (e.g. www.boilers.org) then in order for an air source heat pump to have a lower level of greenhouse gas emissions, it would need to have a COP of over 2.41 in the UK.

In Europe, the carbon intensity of electricity varies. Using information from the GaBi Professional Database, it can be seen than the levels of CO2eq/kWh vary greatly, within this database the UK has a value of 0.597 kgCO2eq/kWh, whereas some countries have far higher values such as the US with 0.64012 or Greece with 1.1012. Alternatively, many countries (especially in Europe) have far lower global warming potentials than the UK, such as Spain with 0.4131 kgCO2/kWh, Latvia with 0.1794 kgCO2eq/kWh, Sweden with 0.16331 kgCO2eq/kWhh or even Iceland with 0.0194 kgCO2eq/kWh. These figures mean that heat pumps will be far better with carbon performance in some countries.

The UK’s emissions will hopefully decrease in the future, however the trend over the past ten years has been for the kgCO2eq/kWh value of electricity to remain fairly stable.

Financial Costs

Financial costs of electricity and gas are complex to work out, with numerous different tariffs. However, using figures from the website energy.eu, the price of domestic electricity is given as 0.17078 €/kWh. Whilst domestic gas is given as 0.0445 €/kWh. As before it can be assumed a gas boiler will run at 90% efficiency, so the cost per kWh of heating would be 0.0494 €/kWh. This would suggest that in order for the heat pump heating cost to be the same or better than gas, the COP would be need to be 3.45. If we look to the industry prices for electricity and natural gas, the necessary COP for a heat pump to be more economical than gas would be 3.05.

Real Life COP values

The Energy Saving Trust carried out on site testing of 83 heat pumps, published in the report “Getting warmer: a field trial of heat pumps”. This showed for air source heat pumps the ‘mid-range’ of measured COPs was near 2.2 and the highest figures in excess of 3.0. The test also included ground source heat pumps, which has slightly higher measured system efficiencies than the air source heat pumps. The ‘mid-range’ ground source system efficiencies were between 2.3 and 2.5, with the highest figures above 3.0.

Further analysis of the EST trial by DECC in March 2012 (Detailed analysis from the first phase of the Energy Saving Trust’s heat pump field trial) examined a number of these heat pump installations in more detail, paying particular attention to the factors that influence system performance. It appears some sites had anomalies in the data, for example boost heater energy consumption not measured, the contribution of an oil boiler being included in system heat and some data provided from a manufacturer rather than the EST monitoring system. Consequently, some of the EST report data has been revised and Table 1 of the DECC report shows the mean system efficiency to be 1.82 for ASHP and 2.39 for GSHP. The ‘good performance’ GSHPs achieved 2.98 and 3.04 system efficiencies.

Narec Distributed Energy has carried out detailed monitoring of numerous air source heat pumps, and our results tally with those of the Energy Savings Trust, with values between 2.0 and 3.0, although the upper end is rare.

It is important to note that both the Energy Savings Trust report and Narec Distributed Energy’s own work has shown that heat pumps tend not to perform in real life with as high a COP as might be expected from manufacturer’s literature. This is due to a high number of reasons, including installation, the buildings the system is in, and the way it is operated.


As long as an air source heat pump has a COP of higher than 1 then it should be cheaper than electricity and reduce carbon emissions. Compared with higher carbon fuels such as oil burners or coal fires heat pumps perform well, reducing costs and carbon.

However, the above calculations show that a boiler running on natural gas will be cheaper to run than an air source heat pump, and also will probably have lower carbon emissions. This situation may change in the future if the carbon intensity of the UK grid decreases, or heat pump efficiencies increase.

To summarise, at the present time (2013), on a cost and greenhouse gas basis, air source heat pumps should only be installed in off-gas properties. In off gas properties they can make a significant contribution towards reducing energy costs, lowering fuel poverty and lowering greenhouse gas emissions from heating.


Further reading:

For a detailed look at the COPs of solar thermal, thermodynamic panels and Air Source Heat Pumps in relation to domestic hot water, please see  our discussion paper “COP Water Heating Technologies”

If you are interested in lab or in-situ monitoring of the COP of heat pumps, please email info@narecde.co.uk or call 01670 543 009

EU Anti-dumping duties for imports of PV Panels and components

In September 2012, the European Commission initiated an anti-dumping investigation on solar panel imports from China. The enquiry is due to publish it’s findings in June 2013 but the UK Solar Trade Association (STA), said this week that they believe that the Commission has already decided to impose significant import duties to any panels purchased from China by as much as 67%.

The anti-dumping enquiry was initiated at the request of EU ProSun*, which represents some of the European photovoltaic manufacturers who felt they couldn’t compete financially with the Chinese manufacturers due to, they say, the large subsidies provided to the Chinese companies by the Chinese government.

link to EC investigation: http://europa.eu/rapid/press-release_MEMO-12-647_en.htm

What makes this case of significance to the UK is that Anti-dumping duties are strongly opposed in many quarters, notably by importers and installers, who support cheap panel imports from China. As the UK has only a small PV manufacturing base it’s progress in PV installations, fueled by the DECC’s innovative FIT scheme, has benefited by the steep fall in prices of panels of imports, primarily from China.

STA CEO Paul Barwell said:

“These duties, if imposed, will damage the UK solar market, particularly the large scale ground-mount sector. It seems absurd that Commissioner De Gucht is supporting these proposals, when the duties will actually result in a net reduction in EU solar jobs, restrict the growth of the solar market, and damage Europe’s chances of meeting its 2020 renewable targets.”

“Solar power has shown impressive cost reductions in recent years, enabling Government to set a pathway of gradually reducing subsidies. However, the cost increases resulting from these duties will throw the UK off course from its solar roadmap. We will continue lobbying DECC and BIS to ensure the UK votes ‘no’ to these proposed duties.”

Source: http://www.solar-trade.org.uk/news.cfm?id=176

From the other EU countries, there is concern EU tariffs would be damaging for efforts to develop clean energy utilising photovoltaic panels which are proving to be a popular technology to aid EU countries to meet their 2020 targets. Others fear retaliation by Beijing who could apply import tariffs to other types of equipment imported into China, the number 2 trade partner of Europe.

The preliminary findings from the investigation are officially due in June 2013.

*EU ProSun’s website describes themselves as an initiative of European photovoltaic manufacturers who united in order to promote PV technology and the sustainable growth of the European solar industry, as well as urge the European Commission to restore a level playing field with China. They also lobbied for a similar investigation for solar glass which was launched in March 2013.

Solar Thermodynamic Panels: Independent Test Challenge

Heat meter for the testing of low carbon heating systemsHeat meter on an air source heat pump system at our training centre

UPDATE: We now have a system being tested in our Thermal Testing Laboratory. More information can be found in the links below.

Solar Thermodynamic Panels

There has been a great deal of talk in the energy industry over the past year on solar thermodynamic panels. Some marketing material and testimonials suggest very promising results, however it seems there is has been no independent testing or verification of these systems in the UK.

As an independent test centre, associated with the National Renewable Energy Centre, we are offering free testing for a solar thermodynamic manufacturer who will supply and install a system for free at our headquarters in Northumberland

Solar collector technology

Marketing literature often compares thermodynamic panels with conventional solar thermal systems, but there are key differences in collector design.

Solar thermal collectors have evolved over the last 30 or so years into mainstream construction products with EN and BS standards. Collectors are usually glazed and combine selective coatings and high insulation levels to maximise the flow temperature and optimise solar energy collection efficiency. In the temperature band for heating water (e.g. 20-50 K above ambient) test results show efficiency is typically 55 to 65% for glazed collectors. Unglazed collectors are rarely, if ever, used for heating domestic hot water in the UK because the efficiency falls quite dramatically with increasing temperature difference; although they are very effective for low temperature applications such as heating swimming pools in summer.

The technology is well proven and typically saves between 50 and 70% of water heating energy; a 4m2 system will typically deliver around 1600 kWh of heat at the tank, using about 45kWh of electricity in the process. Back up heat is usually provided by gas boiler.

Thermodynamic panels are usually unglazed flat plates and use refrigeration technology to boost the flow temperature to the heat the water. It can be thought of as air source heat pump (without the fan) that can take additional gains by collecting solar energy if it is suitably orientated. Thermodynamic panels have the advantage they can produce heat from non-optimal collector orientations, or even at night, because of the temperature uplift the heat pump compression cycle offers. The key question is, how efficient is this process and what carbon saving benefit is there over the existing water heating system bearing in mind the current UK grid electricity carbon content?

COP (coefficient of performance)

Thermodynamic systems use electricity for the heat pump compressor and circulation pump. Therefore, like any other type of heat pump, they will have a COP (coefficient of performance), which is a comparison of the energy taken to run, against the output heat energy from the system.

The COP of air-source heat pumps typically lies in the range of 2 to 4, depending on the weather conditions and season. Lower values are usually associated with domestic hot water production because of the high temperature uplift required; the higher values for spring/autumn space heating. Many heat pump suppliers recommend a hot water set point of 48 to 50°C to improve performance, with a regular pasteurisation cycle to safeguard against legionella (often using an immersion heater to 60°C once a week or fortnight).

EN standard heat pump testing requires COP testing at several temperature conditions and when interpreting these results it is important to compare the same conditions; e.g. A7W35 means water temperature of 35° and ambient of 7°C, for which one manufacturer quotes a COP of 4.13, falling to 2.80 at A-3/35 when the ambient is -3°C. This shows the COPs that can be achieved with a suitably designed low temperature heating system, such as underfloor in-slab. However, heating domestic hot water to 50°C requires a much higher temperature gradient, so it is reasonable to assume the COP will fall.

Some Thermodynamic suppliers suggests the COP lies in the range of 2 to 7 – the question is for UK water heating which end of the range is most realistic?


Thermodynamic panels have been temporarily suspended from the MCS installation database. This doesn’t mean the systems cannot be installed in the UK, but that they will not qualify for any financial incentives etc. which are for MCS approved technologies only.

The reasons given by Gemserv, who run the MCS scheme are:

  • The performance of the products being installed in the UK cannot be fully determined; this is mainly due to the fact that these solar systems are being installed using refrigerant but the 12975 testing and certification through Solar Keymark did not use refrigerant as the heat transfer medium.
  • Systems with a compression heat exchange unit are unable to meet the requirements for completing the SAP and performance estimation calculations required under MCS, for example hybrid type systems are not covered fully within the SAP methodology which is required to be completed under MCS.
  • It is not clear how compliance with Part G of the building regulations is fully met, due to the system’s packaged control strategy. Installers are required to meet all parts of the building regulations under MCS, and it is uncertain if installers are able to do this with the system’s packaged control strategy.
  • It needs to be determined if the classification of these systems within MCS are actually Solar Thermal systems or if they should be classified as Heat Pump systems.

Independent test offer

We are willing to carry out an independent test on a single thermodynamic panel system, if provided with one fully installed with all required fittings at our test facility in Northumberland, free of charge by a manufacturer. Due to current high levels of work, we should be able to start the test after the end of May.

We are an organisation completely independent of manufacturers, and part of the National Renewable Energy Centre group of companies, so will give completely honest and realistic results. Whatever the results, positive or negative, we will release them on our website and to our press contacts. Let’s find out how it compares.

If you feel up to this challenge, please get in touch on info@narecde.co.uk

Renewable Energy Training Q2 2013 Calendar Published

We have launched the training schedule for our range of bespoke and accredited renewable energy training courses for April, May and June 2013. This includes our two new, highly popular courses.

New Courses for 2013

G59/2 Connecting Large Scale Embedded Generators: This course is aimed at renewable installers, to give them an understanding of the requirements for connecting large scale renewable generators, and the reasons why these exist. We have received extremely good reviews from the first attendees on these courses. From our first four runs of the course, which trained a total of 20 individuals, we found 94% of attendees found the course useful, which 28% strongly agreeing.

Biomass Awareness : The biomass course is aimed at an introductory level, covering a wide range of issues for domestic and commercial scale biomass heating. This includes case studies, details on the fuel sources, and the building regulations. The Renewable Heat Incentive with regard to biomass is also discussed

Financial Incentives

We are running seminars on both the Green Deal and Renewable Heat Incentive, which provide updates with all the latest changes to these two schemes.

LOGIC Accredited Installer Training

We continue to offer LOGIC accredited installer training for photovoltaic, solar thermal and heat pump systems. These courses are essential for installers to fulfill their MCS requirements.


If your company is a North East England based SME, you could receive 100% funding for course attendance. If you are interested in this, please contact Andrew Tipping at andrew.tipping@narec.co.uk.

More Information

The renewable energy training schedule can be downloaded here: Narec DE Training Course and Seminar Dates 2013 – apr may jun

Or courses can be booked online here: Renewable Energy Training Calendar

The full prospectus can be downloaded from: Narec DE Training Seminar and Workshop prospectus 2013

If you wish to go on a course which is not scheduled in the calendar, please contact us on training@narecde.co.uk, we can also carry out our training courses on customer’s premises where possible.

Does renewable energy cause fuel poverty?

There has been a great deal in the news over the past 12 months over how renewable energy subsidies are increasing the prices of energy, and how they are increasing fuel poverty. But how true is this? What real effect does renewable energy have on bills?

It is true that bills are increasing, and that this is having an impact on fuel poverty levels. A detailed breakdown of cost increases is given in the report “Household energy bills – impacts of meeting carbon budgets” by the UK Government’s Committee on Climate Change, the bill increases were split up as follows (excluding profit margins) from 2004 to 2010 for an average dual fuel bill (electricity and gas) [1].

energy price increases in the UK - keyenergy price increases in the UK - wholesale gas = 64%, transmission & distribution = 15%,  VAT = 4%,  renewable energy = 7%, energy efficiency = 10%

Figure 1: UK dual fuel price increases 2004-2010 – notice the wholesale costs of fossil fuels dominate the price rises [1]

So, we now know the different factors that caused the bill increases. But, excluding profit, how are electricity and gas bills split up? Currently,  bills are set out as follows:

Electricity Gas
Wholesale Fossil Fuel Costs
59% 65%
Transmission, distribution and metering 22% 26%
Renewables/energy efficiency/carbon price 14% 4%
VAT 5% 5%
Table 2: Fuel cost makeup in the UK [1]

It is important to stress that money funding low carbon measures, such as Carbon Emissions Reduction Target (CERT), was used to insulate homes, and thus although the low carbon measures have slightly increased bills, this money is being used to lift the most vulnerable out of fuel poverty.

From the graph above, it can be seen that renewable energy is not increasing bills. The reliance on wholesale prices of gas are a major contributor, and it seems likely that fuel bills will continue to increase with the wholesale price of fossil fuels, which are showing a general long term increasing trend.

The Future

It is important to state that a greater dependence on renewable energy will protect the UK somewhat from these increases, the UK expects to have 30% of electricity from renewables by 2020 [2] . The gas grid will be mainly natural gas, unless there is a considerable increase in the production of gas through methods such as anaerobic digestion. Currently this is limited to a few brewery waste and sewage schemes, so there is considerable growth potential.

Work by the Committee on Climate Change has shown that if renewable energy systems continue to be invested in, this will increase energy bills by £100 by the year 2020. However, not investing in renewable energy could lead to far higher bills. For example,  if fossil fuel gas is the main component of the energy system in the UK in the future, then bills could increase by £600 by the year 2050 [3].

In short, renewable energy is not the major cause of energy price increases, and not supporting renewable energy will cause bills to be increased even more.

[1] – Household energy bills – impacts on meeting carbon budgets, Committee on Climate Change, 2011

[2] – National Renewable Energy Action Plan for the United Kingdom“, UK Government, 2009

[3] – Energy prices and bills – impacts of meeting carbon budgets“, Committee on Climate Change, 2012

The effects of fuel poverty on children

Narec Distributed Energy have been carrying out a range of work to use renewable energy and low carbon technologies to fight poverty, specifically fuel poverty, but this also has a major impact on child poverty.

Fuel poverty can have major effects on children. To give general information on child poverty in the UK, a well referenced selection of information is given by CPAG (Child Poverty Action Group) [1]:

  • There are 3.8 million children living in poverty in the UK today. That’s 29 per cent of children, or more than one in four. [2]
  • There are even more serious concentrations of child poverty at a local level: in 100 local wards, for example, between 50 and 70 per cent of children are growing up in poverty [3].
  • Work does not provide a guaranteed route out of poverty in the UK. Almost two-thirds (58 per cent) of children growing up in poverty live in a household where at least one member works [2].
  • People are poor for many reasons. But explanations which put poverty down to drug and alcohol dependency, family breakdown, poor parenting, or a culture of worklessness are not supported by the facts[*].
  • Child poverty blights childhoods. Growing up in poverty means being cold, going hungry, and not being able to join in activities with friends. For example, 71 per cent of families in the bottom income quintile would like, but cannot afford, to take their children on holiday for one week a year [2].
  • Child poverty has long-lasting effects. By 16, children receiving free school meals achieve 1.7 grades lower at GCSE than their wealthier peers [4]. Leaving school with fewer qualifications translates into lower earnings over the course of a working life.
  • Poverty is also related to more complicated health histories over the course of a lifetime, again influencing earnings as well as the overall quality – and indeed length – of life. Professionals live, on average, eight years longer than unskilled workers [5].
  • Child poverty imposes costs on broader society – estimated to be at least £25 billion a year [6]. Governments forgo prospective revenues as well as commit themselves to providing services in the future if they fail to address child poverty in the here and now.
  • Child poverty reduced dramatically between 1998/9-2010/11 when 900,000 children were lifted out of poverty [2]. This reduction is credited in large part to measures that increased the levels of lone parents working, as well as real and often significant increases in the level of benefits paid to families with children.
  • Under current government policies, child poverty is projected to rise from 2012/13 with an expected 300,000 more children living in poverty by 2015/16 [7]. This upward trend is expected to continue with 4.2 million children projected to be living in poverty by 2020.

According to the charity Shelter in the report [8]; “These children are living in damp, cold, infested housing or on estates that are shamefully neglected and ridden with fear and filth. Living at the whim of bad landlords who threaten and neglect. Living under the cloud of eviction and debt. Or they are literally homeless – not on the streets but in emergency housing waiting for somewhere permanent to live.”

Information is given by “The Impact of Fuel Poverty on Children” policy briefing written by Professor Christine Liddell [9]. This looked into peer reviewed research globally on the effects of fuel poverty on children.

For example, a study in the US compared two groups of low income children in five different cities. Group 1 lived in families which were receiving a winter fuel subsidy, and group 2 were not. It was found that infants in homes without subsidy were 40% more likely to be admitted to hospital or primary care clinics in their first three years. They were also more likely to be underweight.

Why is this? Like anyone, infants stay warm by burning calories. Thus when they are cold, they have fewer calories available for other jobs such as growing or building a healthy immune system. Additionally, the paediatricians involved in this work speculated that there are risks to children’s cognitive development from years of being underweight.

To put it simply, as stated by the housing charity Shelter, “bad housing wrecks lives”

Work carried out by Narec Distributed Energy which has impacted on fuel poverty includes:

The most recent Narec news stories on this work are:

[*] For example, G Hay and L Bauld, Population estimates of problematic drug users in England who access DWP benefits, Department for Work and Pensions, 2008, suggest that 6.6 per cent of the total number of benefit claimants in England were problem drug users. While drug misuse may prove to be a key reason this group of people finds it hard to escape poverty, it clearly has no explanatory power for the other 93.4 per cent of claimants.

[1] “Child poverty facts and figures,” [Online]. Available: http://www.cpag.org.uk/child-poverty-facts-and-figures#footnote1_xgr6bwh. [Accessed 2012 08 30].
[2] “Households Below Average Income, An analysis of the income distribution 1994/95 – 2010/11,” Department for Work and Pensions, 2012.
[3] “Child Poverty Map of the UK,” End Child Poverty, 2011.
[4] “GCSE and Equivalent Attainment by Pupil Characteristics in England 2009/10,” Department for Education , 2011.
[5] “Life expectancy at birth and at the age of 65 by local areas in the UK, 2004-6 and 2008-10,” Office of National Statistics, 2011.
[6] D. Hirsch, “Estimating the costs of child poverty,” Joseph Rowntree Foundation, 2008.
[7] J. B. a. R. J. M Brewer, “Child and working age poverty from 2010 to 2020,” Institute for Fiscal Studies, 2011.
[8] “Toying with their future – the hidden cost of the housing crises,” Shelter, 2011.
[9] C. Liddell, “The impact of fuel poverty on children,” Save the Children, 2008.

Construction of 3.4MW wind turbine in Blyth

Blades for 3.5MW wind turbineBlades for 3.5MW wind turbine

Over the past week we have been watching the construction of a new REPower 3.4MW wind turbine for Hainsworth Energy.

It has been an incredibly impressive event to watch, as after two weeks of preparation the whole system was put together in four days.

The system will be commissioned at the end of September.

Device Statistics

  • Power Output: 3.4MW
  • Energy: Enough to supply over 2000 homes a year
  • Height: 128 meters

Projects such as these help protect the UK from the global energy prices and help combat anthropogenic climate change.

Below we have a range of photos, and more on the Narec Distributed Energy Twitter


Construction of RE Power wind turbine in BlythPart one of the tower put in place
Construction of RE Power wind turbine in BlythPart three of the tower lifted
Construction of RE Power wind turbine in BlythCrane ready to move part three of the tower into place
Construction of RE Power wind turbine in BlythFirst three parts of the tower connected
Construction of RE Power wind turbine in BlythNacelle lifted up toward the top of the tower
Construction of RE Power wind turbine in BlythNacelle moved into place
Construction of RE Power wind turbine in BlythNacelle now connected
Construction of RE Power wind turbine in BlythClose up of nacelle
Construction of RE Power wind turbine in BlythThree blades connected to hub lifted as one
Construction of RE Power wind turbine in BlythBlades moved into position
Construction of RE Power wind turbine in BlythCareful lifting an alignment of blades
Construction of RE Power wind turbine in BlythCompleted wind turbine

Narec Distributed Energy launch new renewable energy website

sunflowersNarec Distributed Energy

At Narec Distributed Energy we have now launched our own website.

We are part of the UK’s National Renewable Energy Centre, a world leading centre for all renewable and low carbon technologies. This website is dedicated to the substantial work which Narec Distributed Energy carry out in renewable and low carbon technologies, particularly in the built environment.

We carry out a range of services on a range of different renewable and low carbon technologies, using our dedicated team within Narec Distributed Energy, and also using staff from the wider National Renewable Energy Centre.

To see a selection of the project we have work on (or are currently working on) please have a look at the case study section of this website:

To see the latest news from Narec Distributed Energy, please subscribe to the RSS for our news section, and to our twitter at @NarecDE

We thank 21Inspired for the quick and professional website which they created