Table 4 Alternative policies proposed by the interviewees and their justifications

From: Policy prescriptions to address energy and transport poverty in the United Kingdom

Policy suggestion

Explanation

Revise marginal pricing in wholesale electricity markets.

Marginal pricing means that the cost of electricity sold on the wholesale market is set by the most expensive source (currently natural gas). This means that the lower cost of renewable energy is not passed on to consumers. Allowing renewable energy to be sold at less than marginal cost would reduce consumer bills.

Shift environmental levies on to general taxation.

Shifting environmental levies away from electricity bills on to general taxation would be more progressive and incentivize the electrification of heating.

Expand energy advice and other support services.

Energy advice and other integrated support, delivered by trusted experts, can provide ongoing support for people at risk of fuel poverty.

Prioritize and dramatically upscale the installation of domestic energy efficiency measures through a national infrastructure programme, focusing especially on insulation and measures relating to the building fabric.

Energy efficiency is the most cost-effective way to reduce emissions and consumer bills.

The widespread expansion of bus services, with lower ticket prices and simplification of ticketing options (both for buses and rail).

Expanding public transport provides a way to reduce transport emissions in a way that benefits people with low incomes. The specific idea of ‘inter-modal’ ticketing was mentioned by several stakeholders.

Stronger enforcement of energy efficiency regulations in the private-rented sector of housing, with extra financial resources provided to local authorities to enable this.

The private-rented sector is particularly problematic in terms of fuel poverty and inadequate housing conditions, but current regulations are difficult to enforce because local authorities do not have the necessary resources.

Universal basic income and universal basic services.

Providing a guaranteed income level or free essential energy services as basic rights would ensure every citizen can achieve a decent living standard.

Greater use of social tariffs (that is, lower priced energy tariffs) for those on low incomes.

Social tariffs can ensure energy is affordable while targeting support at those deemed to be more vulnerable to energy poverty.