The ADE: ‘Financial support is welcome, but we need a real, lasting plan to lower bills permanently'

The ADE welcomes energy bill rebate but notes that without a further plan, it is a ‘sticking plaster’ in the face of long-term challenges.  Low carbon heat networks and energy efficiency need to be rapidly scaled-up to protect consumers from future price fluctuations and permanently reduce energy demand.  Enabling flexible electricity use will allow households to play an active role in maintaining a stable, efficient and affordable energy system. The Association for Decentralised Energy (ADE) supports today’s announcement of measures to ease the burden of high energy prices for households, but warns the government needs to do more to address price impacts now and to implement real and lasting solutions, such as heat networks, to cut energy demand.Following Ofgem’s announcement that it will be increasing the energy price cap from a previous limit of £1,277 a year for an average household to the new level of £1,971, the government has unveiled a series of mechanisms to offer financial support to struggling consumers as their bills are ramped up. Although it welcomes the commitment to offer a £200 rebate on household energy bills, as well as a £150 pound council tax rebate, the ADE notes these mechanisms are only ‘sticking plasters’ and will do nothing to avoid the long-term impacts of rising energy costs. The ADE is also concerned that all domestic energy customers will only receive support towards the end of the year, despite many households already struggling to manage their rising bills this winter. Ultimately, the UK would not be in this situation if low carbon heat networks, a sustainable and affordable no-regrets option to reduce reliance on gas, were sufficiently supported and widely deployed across the UK’s towns and cities. Heat networks are an established technology that can harness waste or ambient heat from a range of sources, and in most cases, can significantly reduce price volatility for the consumer. Launching a concerted UK roll-out of heat network infrastructure would be a very positive step towards making sure the government won’t need to step in and artificially control prices again.  Lily Frencham, CEO of the ADE, said:The way to protect households from energy price rises in the long-term is to remove our exposure to volatile gas markets through heat decarbonisation and energy efficiency. “The Government has stepped in today with sticking plasters for the next few months. However, it is not enough – either for the immediate crisis that could well continue into next year or for the long-term. Now, it needs to learn from this crisis to go harder and faster towards making people’s homes affordable, comfortable and net zero.As the Chancellor has stated, energy efficiency measures such as insulation also enable households to reduce energy consumption and as a result, save money on their energy bills. As the UK’s homes become more efficient, overall energy demand will fall, resulting in lower energy prices across the economy. There is already a shortfall in meeting the Government’s manifesto pledge of £9.2bn on energy efficiency – now it needs to put words into actions and significantly scale up support for energy efficiency. Long-term, the UK has the opportunity to move to a system of comfortable, affordable homes where households are paid to support the network through offering their flexibility. Whilst today’s announcements are welcome, the Government needs to stop plugging holes in the dam and move concertedly towards a much more sustainable and fairer energy system.  Notes to editors: About Heat Networks A district heating 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. District heating networks provide the means to transport heat efficiently. Heat networks 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. Click here for more information about district heating and here for case studies. About Energy Efficiency Energy efficiency in buildings reduces demand for the heating and power of the indoor space through a combination of measures, such as insulation, draught proofing, and LED lighting. The cheapest, safest and most secure form of energy is the energy we do not use. That is why energy efficiency must be allowed to compete on equal terms with new supply capacity. Energy efficiency means the construction of fewer new generating plants and reduced network infrastructure investment combined with greater resilience and lower carbon emissions. About the ADE The ADE is bringing energy together to advocate on the priorities for the UK in achieving net zero.  It is 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.  The Association has more than 150 members active across a range of technologies and markets and is widely recognised as one of the leading industry bodies in the sustainable energy sector.  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