The UK energy system originally developed from municipal energy networks is designed to meet local need. Once again, Councils are getting involved and actively changing the way that they and their residents use energy. Partly this is to save money. It is also to meet the changing circumstances that they and their residents face.
Reducing electricity and gas use on local authority estates generates savings that can be invested in front-line services. What’s more, by creating warmer, healthier homes residents will be able to spend the money that they have saved on their energy bills in the local high street.
While less money is available, local authorities and cities are starting to get more power. Manchester now has unrivalled control over budgets – including health. This creates new opportunities such as considering investment to treat cold homes alongside the impact of cold weather illness on health budgets.
It is from this wider perspective that it is encouraging to hear that local authorities may be given a role in determining the delivery of up to 15% of the new Energy Company Obligation. Improving whole ‘areas’ makes economic sense and local authorities know best where money should be spent to treat the root cause of fuel poverty; the buildings in which we live.
As a nation the UK is on the brink of a wholesale infrastructure upgrade. This is as much out of need as it is design. We have some
of the oldest infrastructure in the world and millions of families live in houses well over 100-years-old.
The National Infrastructure Commission has already identified acute energy challenges for the UK, but a balanced view of both demand and supply side infrastructure is needed.
Council action will be key, but getting our buildings up to scratchit needs support from all levels of Government. Market drivers from HM Treasury, such as linking the price of stamp duty to the energy efficiency of a building when it is sold, will support both councils and families who do invest.
Energy efficiency must also be recognised as a national infrastructure priority. At the very least, doing this will counter ‘silo’ thinking across the Government. A blinkered approach is not economically efficient and undermines the mantra of cost-effectiveness championed from the top.
Better would be a release of infrastructure funds so our 100-year-old homes can be properly insulated – enabling everyone to benefit from smart meters and the other technology so often discussed.
Indeed, where better to start this change than back at the local level where our energy system began?
Josh Robson is head of public affairs at Knauf Insulation
This column is brought to you by Local Authority Energy Index developed by Knauf Insulation
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