Rising ‘Non-Energy’ Costs


Warm Home Discount

Support for households who are living in or are at risk of fuel poverty.

ECO (Energy Company Obligation) Covers:

  • Affordable Warmth Obligation – To provide heating and insulation improvements for low-income and vulnerable households (but social housing tenants are not eligible for affordable warmth).
  • Carbon Saving Obligation – to provide funding to insulate solid-walled properties (internal and external wall insulation) and those with ‘hard-to-treat’ cavity walls.
  • Carbon Saving Communities Obligation – to provide insulation measures to people living in the bottom 15% of the UK’s most deprived areas. It is expected that this element of ECO will particularly benefit the social housing sector.

Smart Meters

The smart meter installation programme beginning in 2014 could cost upwards of £11 billion.

Renewable Obligation

The amount of renewable energy bought by the suppliers is managed through the issue of Renewables Obligations Certificates – ROCs

Non-energy costs are making up an increasing proportion of total costs and now account for as much as 40% of a typical energy bill. This represents a 50% increase since 2008 and another 15% increase in the next financial year due to the introduction of the carbon floor price (The carbon price floor came into effect on 1 April 2013. In essence, this is a tax on non-renewable fuels used in the generation of electricity. This is passed on via the existing Climate Change Levy. Further increases are in the pipeline under the changes being introduced under the Electricity Market Reform, which is still being finalised.

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