This policy briefing highlights the positive steps that can be taken now by the UK Government and energy regulator Ofgem to respond to the current energy crisis and support vulnerable energy customers this winter. It is hoped that this will prompt policy interventions in advance of Ofgem announcing in February the next revision to the energy price cap.

This year’s UKFPM identifies the opportunities associated with decarbonising heat for fuel poor households; the barriers they face in doing so; the likely risks of the decarbonisation agenda for them; and which policy developments and interventions are required to ensure that the decarbonisation of domestic heating can be fair and affordable.

The COVID-19 outbreak has already had a significant impact on household finances, especially those that already struggle with the costs of essential services. But there is a bigger gathering storm. Existing debt issues within the water and energy sectors are being badly exacerbated by the current crisis, and whilst welcome, current provision is not adequate to deal with the scale of these challenges.

District heating can contribute to fuel poverty reduction targets through its ability to provide stable and predictable prices for energy over an extended period of time; reduced worry for households about breakdowns or repairs; the creation of local employment opportunities and contribution to economic growth.