Historically the DNOs’ role and interaction with customers was mostly led by the need to manage and respond to outages. As we transition to a DSO and customers choose to interact with the network for other services, it is important to reconfigure our services to address the needs of all our customers. It is fundamental for network services to be inclusive and fair, to make sure that no one is left behind as we transition to a net zero future. The increased uptake of low carbon technologies (LCT) integrated into our network may result in higher network costs with the distributional effects of this not being fully understood. Present cost structures of connections and DUoS charges might not be equitable for those who find it difficult to access new LCTs, exacerbating the issues faced by vulnerable customers. There is a need to increase our understanding of customer vulnerability in a world that is transitioning to net zero.
Benefits
NPV = Base Cost – (Method Cost – Benefits)
In RIIO-ED1, we expect the following:
- NPV = £1.2m – (£0.5m - £0.2m) = £0.9m where:
o Base Cost = £1.2m
o Method Cost = £0.5m, which is the NPV of project costs
o Benefits = £0.2m, which is the NPV of anticipated benefits coming from engagement with fuel poor customers
In RIIO-ED2, we expect the following:
- NPV = £15.0m – (£10.6m - £2.0m) = £6.4m where:
o Base Cost = £15.0m
o Method Cost = £10.6m
Benefits = £2.0m, which is the NPV of the anticipated benefits coming from network reinforcement deferral and customer satisfaction
Learnings
Outcomes
The outcomes of the project were successfully disseminated through an online webinar to showcase our tool aimed at identifying those in fuel poverty. The webinar included participants from other utilities including energy and water, other DNO organisations, various community groups and others.
The key outcomes aimed at identifying and supporting those at risk of fuel poverty are described below:
1. Signature behaviours of those on fuel poverty – People in fuel poverty use coping strategies such as rationing energy by not using heating, limiting hot water use, and reducing oven use. Some prioritise heating for health reasons or build up debt elsewhere. Those new to fuel poverty may struggle to cope and accumulate energy debt, while fuel poverty can be transient due to various factors.
2. Datasets should represent the household behaviour – Datasets should show rationing behaviour. Smart meter prepayment meter data is effective at this. It needs to represent the entire population so direct debit customers and those that pay on the receipt of the bill need to be included for both electricity and gas.
3. Effective engagement with consumers at risk of fuel poverty – All research showed that information should be sent from a trusted body, such as the Local Council, NHS or well known charity.
4. Services for those at risk of fuel poverty – Community sessions are a great way of levelling and taking away any stigma associated with unaffordable energy bills. Other services include Smart controls and retrofit that need to be effectively described and come with insurance and reassurance. One step eligibility was also very well accepted.
Lessons Learnt
Some of the high-level lessons gained through the project are set out below:
Recommendations to enhance TRL level of the tool:
• The tool has moved beyond static data on fuel poverty to become more dynamic and relevant in real-time. Adding more datasets will increase accuracy and allow DNOs to better target their services.
• Additional datasets could include gas and electricity data, weather data, food bank data, energy debt data, water debt data and universal credit payments. These datasets can be combined to analyse additional consumer behaviours namely rationing heat in Winter, prioritising fuel payments, new fuel poor and others.
Service Proposals:
• Partner workshops and consumer focus groups highlighted that all information to the high risk of fuel poverty group should be sent from a trusted body, such as local authorities or a trusted charity. GP Surgeries are a great way of signposting information.
• Community sessions are a great way of levelling and taking away a stigma associated with unaffordable energy bills. Target these activities towards people with similar interests. For instance, the elderly lunch group or a singalong at the library with toddlers.
Reaching those at risk of fuel poverty:
• Experts shared research on 'hard to reach fuel poor', who struggle to heat their homes, use food banks, and fear losing their homes if they can't pay rent. They don't trust being asked questions or receiving letters, but need information on support from trusted sources like housing associations, local councils, GPs, and charities such as Citizens Advice.
• A tool should identify areas of fuel poverty and relevant housing associations can communicate directly with tenants. Community events advertised on social media can help reach those in private rental systems who are difficult to contact.
Others:
• Ensure the quality of data (in terms of completeness and accuracy) is good enough to identify fuel poverty as datasets utilised may not have been developed for the express purpose of fuel poverty.
• Ensure all data and findings are representative of the population and not simply a subset, or weighted in favour of demographics etc.
