The energy sector is now on the verge of a once in a lifetime transformation. It is work that is long overdue, and if enacted successfully, could make the UK a green superpower and generate significant economic growth.
The mission to deliver clean energy by 2030 is an important statement of intent from this government – as a CEO in the sector I welcome these words of change. For too long, the energy sector has been a specialised, obscure area of industry and an unwelcome bill on the doormat for consumers. It has the potential to be more: an engine for economic growth, a way to future-proof our workforce, and an infrastructure upgrade to secure our energy independence going forward.
The UK household is absolutely crucial to these plans. Carbon emitted by heating homes accounts for almost a fifth of the UK’s total emissions – rising to 25 per cent if you factor in commuting and travel. That is a huge part of our overall footprint, and something we can address in the domestic space. The hard truth is that across the country, these words still mean too little to people. The UK has endured an acute cost of living crisis, and a period of real hardship for those paying the heating bill. With winter around the corner, bills are still £633 higher, on average, than they were three years ago.
In Britain, fuel poverty is still a genuine, pressing concern. Green technologies are in the hands of too few. If we were to be honest with ourselves, meaningful change still feels out of our reach. While we know there is promise for tomorrow, there is still work to be done to bring people along on our shared mission. As a retailer for many years, it’s my belief that the customer should always be at the heart of any good organisation –including the government. It’s on every one of us to make changes that are so desperately needed in the energy market to benefit UK households for the long term. It is also our responsibility to clarify what we can do to make a difference to the cost of living, without placing the burden of cost and responsibility on the individual. At OVO, we have a definitive plan to make that happen in a way that creates a fairer future.
First, we need to tackle the pressing issue of rising energy bills and help those who are most in need. Too many people in the UK still live in fuel poverty, making tough choices when it comes to their household budgets. Since 2022, OVO has provided £140m in support to customers who need it, but we urgently require the introduction of a social tariff, to formalise the nation’s supports when it comes to energy bills.
This will require government support in the form of data and identification to make sure that help gets to everyone who needs it. We’ve had supportive conversations with ministers and teams within the government, and it is time to deliver a social tariff to the customers who require some help.
Second, we need to break down the barriers that make it harder for customers to access clean energy and technologies at home – through technologies like solar panels, heat pumps, and electric vehicle (EV) chargers. We can see there is a real, promising appetite from consumers to adopt green energy technology. Yet, the reality is the cost remains as the biggest barrier.
Our recent research on EVs show that, although 85 per cent of the public are in favour of owning an electric car in the next five years, almost two-thirds (62 per cent) say it is not something they can currently afford.
After cost, the next challenge is information. We need to help people to make positive, informed decisions about their home. Our research highlights that many people believe solar panels only work in the summer when there is a cloudless sky.
Some believe that air source heat pumps only work in hotter climates – if they are aware of them at all. Low carbon technology brings bills down all year round – but only if people believe in it and have the financial ability to access it.
Even with the right information to hand, there is an ongoing challenge with readiness. The truth is, in an emerging market, we need to be ready and able to meet the customer wherever they are on their journey and take those first steps with them. In solar and heat, we are using energy saving programs which allow customers to bank bill credit over time. This funds larger ticket items such as roof panels in the future, which benefits renters who may wish to buy a property further down the line but may not be ready yet.
Many people who want EVs also won’t have a driveway attached to their home – over half of people don’t. Because of this, we’re investing in making on-street charging as simple and cheap as possible so there’s no sting when you have to charge away from home.
Third and finally, we must make the most of every opportunity we get to install green technology. All the new homes Labour are planning to build must come with this low carbon technology as standard, and they must intervene where possible to make installing green technology accessible, and cheaper, in every home. Then the real work can begin on refurbishing our existing housing stock, which are some of Europe’s oldest and most outdated properties.
While the worst of the 2022 energy crisis is hopefully behind us, there are lessons we must learn to prevent that type of crisis becoming the new normal in the future. While the road to renewable power and energy independence may feel long, there’s not a moment to waste in bringing about the changes needed to lower bills and reduce carbon emissions and communicating the benefits to consumers. With a new government comes a renewed ambition for change. And that change begins at home.
