Government should shift its focus from insulation to boilers under the ECO scheme to better address fuel poverty, according to Mike Foster, CEO of the Energy and Utilities Alliance (EUA).
Mike Foster made his comments in light of new statistics from the Department for Business, Energy & Industrial Strategy (BEIS) showing that between 2014 and 2015 the number of families living in fuel poverty in England increased from 2.3 million to 2.5 million. This means that in 2015 the proportion of households in fuel poverty was estimated to be at 11%. Considering the consequences of fuel poverty, which include excess winter deaths, respiratory problems and social isolation, the EUA is calling on Government to go further in order to tackle this problem prior to the coming winter.
According to the EUA, the focus of the ECO scheme has shifted towards insulation as a result of capping the number of boilers fitted under ECO at 25,000 over 18 months. This represents a substantial decrease from the prior yearly allowance of 130,000. The EUA says evidence demonstrates that a key way in which fuel poverty can be targeted, and ultimately alleviated, is through replacing old, inefficient boilers.
Mike Foster comments: “Replacing so called ‘zombie boilers’ is key to reducing the number of households living in fuel poverty. The installation of a new condensing boiler can cut energy bills by around a third.”
The EUA’s statistics have shown that there has been a dramatic decline in the number of new boilers being fitted under the ECO scheme. In March this year, 7037 new boilers were fitted, whereas by April only 1211 were – a monthly decrease of 83%.
“Given that it is estimated that there are still around 9 million inefficient boilers being used in the UK, costing consumers more and emitting higher levels of C02, the ECO scheme should consider lifting the cap on new boiler installations in order to combat fuel poverty,” says Mike Foster.
