Energy sector ‘not ready for net zero’
Householders need help to upgrade
“Around 80% of our existing housing stock will still be in use in 2050, nearly 23m homes that will require a net zero carbon retrofit.” (National Citizens Advice Consumer Work Plan, 2021-2022)*
Everyone knows the 2050 net zero commitment will be difficult. To succeed, the government needs the support of householders and the energy supply industry. Recent experience is not encouraging:
- ‘Green’ Energy efficiency schemes have flopped
- Prices Overcharging, Not returning large credit balances to customers**
- Switching Complexity. Misleading expectations
- Company failure Many suppliers have gone bust with costs picked up by other companies’ customers***.
Making sure consumer protections are in place as government makes net zero plans is a Citizens Advice priority for 2021-22. At local level, we will monitor the issues our clients raise and invite Reigate & Banstead residents to contribute comments and ideas.
All sides must realise the scale of the challenge and that (re)building public trust will be crucial in meeting it.
* Priorities 2021-22: 1) Social security help is adequate. 2) Consumer protections in place for net zero policy. 3) Postal service no longer fails people with insecure lives, including homelessness. 4) Reduce the harm caused to people currently judged to have ‘No Recourse to Public Funds’.
** Ofgem wants to cut the amount companies can hold when customers over-pay. This could result in the return to households of £1.4 billion or £65 per household on average.
*** Citizens Advice estimates since 2018 around 1.6 million households have been affected by their energy supplier failing. By 2019, nearly £40 million worth of credit balances with failed suppliers were paid for through a levy on customers.
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