Who pays for and who benefits from energy network transformation? The evolving relationship between networks, demand, and vulnerability

Extended abstract 2-281-26

Energy affordability is a major policy issue in the EU and in the UK, with over 46 million Europeans experiencing energy poverty. At the same time, energy networks must evolve quickly to meet climate commitments. Transforming energy networks is expensive, and shapes the possibilities for energy transitions across places. Without due policy attention, there is a risk that households experiencing energy poverty will overcontribute to the costs of network upgrades that primarily benefit the more affluent who are able to more quickly move to electrical heating and transport (e.g. heat pumps and electric vehicles).

This work presents outcomes from a workshop and interviews with UK policymakers, energy industry, third sector, and academia to address the following research questions and compare with other European contexts:

1. How are vulnerable energy users affected by energy network actions?
2. How can energy networks support vulnerable energy users during the transition to low carbon heating across timescales?
3. What research is needed to enable a fair approach to transforming energy networks and recovering associated costs?

Workshop attendees highlighted approaches to cost recovery for network upgrade and maintenance, and charges to disconnect from networks, as key areas that currently exacerbate energy vulnerability. They further noted difficulties with network permissions for large-scale programmes to electrify heating in social housing. Attendees noted a potential for improvement through evolution of the role of network operators and development of the UK Government’s Warm Homes strategy, and highlighted approaches from across European countries that could help to mitigate existing issues and ongoing risks. They further noted the potential for strategic energy planning processes currently underway to support those experiencing energy vulnerability, but also a risk that these opportunities could be overlooked if planning and delivery does not incorporate sufficient community engagement.

Attendees identified three priority areas for ongoing research around energy networks and vulnerability: a comprehensive survey of network operator’s activities to address vulnerability, quantification of network impacts associated with regulation to improve energy efficiency in rented homes, and development of fair approaches to decommissioning gas networks.

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