ADE welcomes energy payment; support should be targeted at those who most need it
Earlier this week, Ofgem announced the energy price cap for a typical household would rise to £2,800 a year in October, following a £700 spike in April – the regulator warned this meant as many as 12 million households could be hurled into fuel poverty. The government has today confirmed it is to scrap plans for a £200 loan aimed at helping the public afford surging energy bills, announcing that it would be doubling this to a £400 payment, which will not need to be repaid. The ADE is glad to see more money going to consumer’s pockets in this time of difficulty but warns longer-term measures are also needed to avoid the financial catastrophe faced by many households from continuing into the future. The trade association agrees that financial support should be targeted to those who most need it – and highlights that should include those who are experiencing more impact; this includes some heat network customers, because the heat network market works differently to other parts of the system. Support for the sector in the immediate, as well as the long-term, is important, as low carbon heat networks are a sustainable and affordable no-regrets option to reduce the UK’s future reliance on gas - according to the Danish Embassy, 90% of heat network customers in Denmark, a country where the technology is well-established and widespread, have seen no increase in their energy prices this year. Lily Frencham, CEO of the ADE, said:Today’s announcement of additional financial support is both welcome and necessary – many will be relieved. It is important that we continue to think about how to provide targeted support to those who most need it. We must also continue a conversation about ‘what next’, and soon - the way to protect households from energy price rises in the long-term is to remove our exposure to volatile gas markets through decentralised energy technologies such as heat networks and energy efficiency upgrades. We need to go harder and faster towards making people’s homes affordable, improving national energy security and alleviating fuel poverty.Notes to editors: About Heat Networks A heat network scheme comprises a network of insulated pipes used to deliver heat from the point of generation, in the form of hot water or steam, to an end user. Heat networks provide the means to transport heat efficiently. They can be supplied with heat from a diverse range of sources including power stations, waste-to-energy facilities, biomass boilers and CHP plants, gas-fired CHP units, heat pumps, electric boilers and even solar thermal arrays. About the ADE The ADE is bringing energy together to advocate on the priorities for the UK in achieving net zero. We have over 150 members organisations and together we are driving the decarbonisation of heat, championing the role of industry in the green transition and pushing for UK homes, places of work and public services to be energy efficient and smart. Only by getting users engaged and investing in energy efficiency, low carbon heat and providing smart flexibility will be the UK truly be able to decarbonise its energy system. For this to happen, energy must work for the user. At the ADE, we believe that an energy system designed around the user’s needs, enabling the right technology choice in the right place, serves everyone better. For further information please contact: Jonny Bairstow Head of External Affairs Association for Decentralised Energy Tel: +44 (0) 7305 049584 jonny.bairstow@theade.co.uk
