(29 November 2010) Energy prices are set to increase. A failed internal market for electricity and gas which did not see prices decrease, scarcer resources and growing demand leading to higher fuel prices as well as the need to tackle climate change and invest in infrastructure are the main reasons. But as energy prices go up, low income households find it more difficult to pay their bills and are confronted with energy poverty. Debts increase. Families can not heat their homes or do not have light. Citizens faced with energy poverty often live in lodgings with poor ventilation and high humidity. And with cold and moisture people are more ill.
Following a successful EPSU and European Anti-poverty Network campaign the 3rd directive to open the markets asked Member States to address energy poverty in national action plans. But little progress is made. The Belgian Presidency decided to put the issue on the agenda of the Council of Ministers of Energy.
Paul Magnette, the Federal Minster for Energy and climate reported that 13% of Europeans (65 million) spend more then 2x the national average on energy with 40 million people reporting problems with paying their bills. There are important differences between countries though. The Minister argued that citizens threatened with fuel poverty also lower their consumption. This means that they do not life a live with houses sufficiently heated for example. A [study->www.fuel-poverty.org] revealed the extend to the problems focusing on measures to address energy poverty –ranging from protection of consumers, reduction of energy related expenditure of households,to addressing the functioning of the market, preventing disconnections and intervening in the price (social tariffs) and improving energy efficiency in buildings especially social housing.
Several examples were given of social or health workers actively advising low-income households and people in poverty on energy use. Training of such workers was important.
The Minister reported that the Energy Council 3 December would address:
- A definition of the problem of energy poverty
- Evaluate the impact of energy poverty on consumers
- The establishment of a network of ombudspersons
- Reduction of energy consumption (in line with the 2020 target of improving energy efficiency with 20%) Funding for measures to address energy poverty could be made available.
The Minister stressed the role of local authorities in assisting with improving energy efficiency. Italian workers representative Eduardo Iozia of the European Economic and Social Committee presented the committee’s opinion dealing with the issue of energy poverty in the context of liberalized markets and the economic crisis. The committee wants this to become a new social priority with a common EU definition and improved statistical information. A 2009 report of the European regulators on vulnerable users underlines there is a lack of data. The EESC wants a longer term action strategy with national action plans and a European Centrum to monitor energy poverty. The general consensus between unions, environmental organizations, organizations of people in poverty, anti-poverty campaigners such as EAPN and other social action groups was that addressing energy poverty requires a range of policies starting with improving the income of people and ensuring that purchasing power is guaranteed and not eroded. Energy prices should not increase for this group through special tariffs for example. Energy bills can be kept in check by addressing energy consumption through investing in better housing, insulation which in turn requires funding in social housing. The Belgian trade unions presented a joint position (see presentation below) which draws attention to the importance of a comprehensive approach which was echoed by Jan Willem Goudriaan, EPSU Deputy General Secretary in his contribution. He argued: “The mandate of the European energy regulators needs to change. Their mandate now is to promote competition. For them it is the only way to promote the interests of consumers. But the mandate should be to protect the interests of consumers and low income households and that can be done through a variety of measures, including regulated prices. Now the regulators want to abolish these, asking people in poverty to hunt for the lowest offers and price, actively participating in the liberalized markets. Clearly they do not realize what it is to life in poverty.”
Several organizations and not least those of people in poverty were very skeptical of the advantages of introducing smart meters for them. The risks of disconnection, of unintelligible differentiated prices, of having to pay for the meters and their installation that do not pay themselves back have not been sufficiently addressed. While the Directives on opening the market for electricity and gas (2009/72/EC) and (2009/73/EC) do foresee the possibility of a cost-benefit analysis this is not done in many countries.
EPSU has also expressed reservations in its contributions to the consultations on smart meters. The Conference took place on 24 November 2010, (Charlerloi), Belgium
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