Improved insulation and heating standards are seen as the most rational and sustainable means of mitigating heating price increases and ensuring affordable warmth. While we must decarbonise our energy system, we must also ensure that the needs of those on lower incomes and experiencing fuel poverty should be protected. We commend both Councils for designing and developing this strategy and have also made some comments to the questions posed in the consultation.

NEA recognises that many low-income households experience affordability issues with their essential household bills, rarely struggling with one bill in isolation, and as a result is delivering a programme of work which seeks to support ‘People Living in Water Poverty and Fuel Poverty’.

In the first few months of 2020, the world watched a global pandemic unfold. Countries around the world were imposing strict nationwide lock-downs, with economies basically shutting down to control the spread of the virus. The turning point for the UK came on 23rd March when Prime Minister Boris Johnson addressed the nation.

In a modern world, water is recognised as a human right.  It is understood to be essential to life and yet some are so concerned about the cost of it that they actively decide not to use the water they vitally need and find themselves falling into debt or self-rationing their water use. These families may also be making impossible choices between heating and eating, at the same time as restricting bathing to once a week, all sharing the same bath water, because the cost of their water, and the cost of heating it, is just too high.

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.

The Connecting Homes for Health pilot project was delivered by fuel poverty charity NEA, Northern Gas Networks and YES Energy Solutions. In what’s believed to be an industry first, it combined funding from the Fuel Poor Network Extension Scheme and Warm Home Discount Industry Initiatives to install free gas connections and central heating systems in over 100 properties in the North East of England whose residents were on low incomes and at risk of cold-related ill health. Residents also benefited from support and energy advice on how to use their new systems effectively, improve energy efficiency and reduce fuel bills.

In our January 2020 response to Ofwat’s forward work plan, we acknowledged that driving innovation across the water sector was vital to address the strategic challenges the industry faces. We believe the innovation competition allows an additional opportunity for companies to address these key 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.

NEA appreciates that many energy suppliers and their staff will be working tirelessly to provide appropriate support and services for customers in vulnerable circumstances during the COVID-19 outbreak. NEA has also been capturing its own staff’s feedback on the early impacts COVID-19 is having on vulnerable customers’ access to support. The findings provide a snapshot of some emerging trends.