9. Short Debate: Getting smart with fuel poverty

Part of the debate – in the Senedd at 7:00 pm on 14 February 2018.

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Photo of Lesley Griffiths Lesley Griffiths Labour 7:00, 14 February 2018

Thank you, Deputy Presiding Officer, and thank you to Mark Isherwood for bringing forward this very important debate where he raised some very important points. It gives me an opportunity to describe what we're doing as a Government and it also reminds us of the need to maintain action to tackle fuel poverty. Living in a cold home can have a significant impact on health, educational attainment and overall social and economic well-being. The Welsh Government has been absolutely clear in our commitment to do everything we can to tackle fuel poverty.

Wales has some of the oldest and least thermally efficient building stock in Europe, so it takes more energy to keep homes warm, driving up energy consumers' costs. Improving the energy efficiency of our housing stock is, therefore, key to reducing demand, reducing energy bills and tackling fuel poverty. This debate is focused upon the subject of getting smarter with fuel poverty, and there are many ways we can demonstrate a smarter approach. Smart meters are a non-devolved matter, however, we continue to work with Smart Energy GB, Ofgem and energy suppliers to ensure the needs of Welsh consumers are considered in the roll-out of smart meters. Smart Energy GB's research shows 86 per cent of households with smart meters make changes to their behaviour to save energy and this will be important if we are to achieve our ambitions for eradicating fuel poverty and also, of course, for achieving our ambitious decarbonisation targets.

Smart meters are significant, but there are, of course, other initiatives we must adopt in Wales if we are to eradicate fuel poverty. For example, Wales will be participating in Energy Systems Catapult's Fair Futures programme. The programme aims to understand how to design and deliver services to consumers facing difficulties, with low household incomes and high cost of adequate energy in their homes. The initial focus will be on the smart systems and heat programme area of Bridgend County Borough Council, but will spread to other areas as the Fair Futures programme develops.

The most effective way we can tackle fuel poverty is to improve the energy efficiency of homes of those on low incomes or living in the most deprived areas of Wales. We are doing this effectively through the Welsh Government Warm Homes programme, which includes Arbed and Nest. Warm Homes Nest is our demand-led fuel poverty scheme where households can access free, impartial advice and support to help them reduce their energy bills. Advice is provided in areas such as saving energy and water and energy tariffs. Nest also provides advice and referrals on broader issues, including benefit entitlement checks and debt advice, including money management.

Ofgem has reported an increase in the number of customers in Wales switching energy supplier. Latest figures show the number of people who switched their energy provider in 2016 was higher in Wales than the rest of GB. This is why the advice service through Warm Homes is so important, and we will build on this through the new Warm Homes programme to ensure more homes are getting the best deal, with potential savings of over £200 a year. I would also like to see energy suppliers doing more to ensure customers are on the most appropriate tariffs, rather than continually overpaying on standard variable tariffs.

For those most in need, and living in the least energy-efficient properties, Nest also offers a tailored package of free home energy improvement measures, such as boiler and heater upgrades and installation. Alongside Nest, we have our area-based fuel poverty scheme, Warm Homes Arbed. Arbed focuses upon improving the energy efficiency of homes in some of the most deprived areas. The scheme aims to reduce the carbon footprint of Wales's existing housing stock and, in doing so, provides resilience for households against rising energy costs.

I've maintained the Welsh Government's commitment to action on fuel poverty with a new Warm Homes programme commencing in the spring, which will run for the long term. As Mark Isherwood welcomed, we will invest a total of £104 million in Welsh Government Warm Homes, enabling us to improve up to 25,000 homes of those on low incomes or living in the most deprived areas of Wales. Our investment will also lever in up to £24 million of EU funding in addition to funding from the UK energy company obligation.

Since 2011, we've invested over £240 million to improve the energy efficiency of over 45,000 homes of those on low incomes or living in the most deprived areas. There are some concerns fuel poverty and vulnerable households could be left behind with the smart revolution taking place in energy. Once again, this is why the advice offered to householders within our Warm Homes programme is so important. Nest has provided impartial advice and support to over 98,000 households since 2011.

And whilst I am proud of this Government's ongoing commitment to tackling fuel poverty, there is, of course, more to be done. In November last year, I issued a written statement where I set out my ambition to increase the scale and rate of residential energy efficiency retrofit in Wales. The Environment (Wales) Act 2016 sets our ambition to reduce emissions in Wales by 80 per cent by 2050. The evidence tells us that to achieve our aim, emissions from buildings will need to be close to zero. Currently, homes contribute approximately 15 per cent of Wales's total emissions. Achieving reduced emissions of this scale will require new homes and buildings to be much more energy efficient. It will also require energy efficient appliances and changes to the way we heat our buildings.

Crucially, it will also require the dramatic upscaling of energy efficiency retrofit works on existing homes. Around 70 per cent of homes that will exist in the 2050s will have been built before 2000. My officials are therefore developing options for new interventions, examining how services could be established, operated and funded to deliver not only benefits to those in fuel poverty, but also wider economic, social and environmental benefits for Wales, including decarbonisation. Thank you.