minimum household energy need

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How the cost of a Minimum Essential Standard of Living varies with dwelling energy efficiency MINIMUM HOUSEHOLD ENERGY NEED Robert Thornton Research Associate Vincentian Partnership for Social Justice

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How the cost of a Minimum Essential Standard of Living varies with dwelling energy efficiency. Minimum Household Energy need. Introduction. Research by the VPSJ on behalf of the SVP - PowerPoint PPT Presentation

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Page 1: Minimum Household Energy need

How the cost of a Minimum Essential Standard of Living varies with dwelling energy efficiency

MINIMUM HOUSEHOLD ENERGY NEED

Robert ThorntonResearch Associate

Vincentian Partnership for Social Justice

Page 2: Minimum Household Energy need

www.budgeting.ie

Introduction

• Research by the VPSJ on behalf of the SVP• How the cost of a Minimum Essential

Standard of Living (MESL) is impacted by the energy efficiency of a household’s dwelling

• 3 household types - variation in the cost of MESL at 3 levels of dwelling efficiency

• Assesses risk of Energy Poverty & Income Adequacy

Page 3: Minimum Household Energy need

www.budgeting.ie

Minimum Essential Standard of Living

Page 4: Minimum Household Energy need

www.budgeting.ie

&

ELECTRICITY

or

GAS OIL

Household Energy Need

Page 5: Minimum Household Energy need

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Definition of Energy Poverty

A household is considered to be energy-poor if it is unable to attain an acceptable standard of warmth and energy services in the home at an affordable cost

Warmer Homes

Page 6: Minimum Household Energy need

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Defining Energy Need

• Acceptable standard of warmth

› 21°C in main living area

› 18°C in rest of dwelling

• Energy services

› Energy for other household needse.g. light, cooking, laundry, social (television, computer, etc.)

• Affordable cost

› Energy need must cost less than 10% of net income

Page 7: Minimum Household Energy need

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Household Types

1) Two Parents, Two Children (Pre-School & Primary School age)› Mid-Terraced House, Dublin› Private Rented in receipt of Rent Supplement

2) One Parent, One Child (Primary School age)› Apartment / Flat, Dublin› Private Rented in receipt of Rent Supplement

3) Pensioner, Living Alone› Mid-Terraced House, Rural› Social Housing, Differential Rent

Page 8: Minimum Household Energy need

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Three Levels of Efficiency

Low energy rating more commonly found in private rented sector

Median energy rating

Efficient energy rating

Page 9: Minimum Household Energy need

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Annual cost of Energy Needed

Two Parent(Terraced House)

One Parent (Flat /

Apartment)

Pensioner(Terraced House)

-

1,000

2,000

3,000

4,000

5,000

INEFFICIENT

EFFICIENT

Page 10: Minimum Household Energy need

www.budgeting.ie

BER E1 BER C3 BER B2€0

€10

€20

€30

€40

€50

€60

€70

€80

€90

€100

78.34

58.28

39.76

Extreme

Two ParentPre-School & Primary School age children

• MESL Expenditure› €432.27 per week

excluding energy

• Household Income› €434.32 per week

social welfare• Income inadequate in

all cases• Energy Poverty in two

cases

Energy Poverty

Severe

Page 11: Minimum Household Energy need

www.budgeting.ie

One ParentPrimary School age child

BER G BER D1 BER B2€0

€10

€20

€30

€40

€50

€60

€70

€80

€90

€100

72.93

38.74

30.34

EP

Extreme

Severe

• MESL Expenditure› €272.81 per week

excluding energy

• Household Income› €259.72 per week

social welfare• Income inadequate in

all cases• Energy Poverty in all

cases

Page 12: Minimum Household Energy need

www.budgeting.ie

PensionerLiving Alone

BER E1 BER C3 BER B2€0

€10

€20

€30

€40

€50

€60

€70

€80

€90

€100

83.71

58.19

35.12

EP

Extreme

Severe

• MESL Expenditure› €271.49 per week

excluding energy

• Household Income› €236.70 per week

social welfare• Income inadequate in

all cases• Energy Poverty in all

cases

Page 13: Minimum Household Energy need

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Conclusions

• 9 Social Welfare Dependent cases presented–Energy Poverty found in 8 cases• 5 cases of Extreme Energy Poverty

(energy costs over 20% of net income)• 1 case of Severe Energy Poverty

(energy costs over 15% of net income)

–The scenario not in Energy PovertyEnergy costs are 9.15% of

income

Page 14: Minimum Household Energy need

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Conclusions

• Social Welfare is not providing an adequate income for the three household types examined

• Efficiency improvements can lower the depth of energy poverty

• Low & inadequate social welfare supports must be addressed in conjunction with energy efficiency

Page 15: Minimum Household Energy need

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Summary Results Social Welfare Dependent Household Scenarios

HOUSEHOLD TYPE DWELLING TYPE

INCOME€ PER WEEK

BER ENERGY € PER WEEK

ENERGY POVERTY

Two Parents & Two Children(Pre-School & Primary School Age)

Mid-terraced houseUrban, Gas Heating

434.32 BER E1

78.3418.04

%EP severe

BER C3

58.2813.42

%EP

BER B2

39.769.15

%No

One Parent & One Child(Primary School Age)

Flat / ApartmentUrban, Gas Heating

259.72BER G 72.93

28.08%

EP extreme

BER C3

38.7414.92

%EP

BER B2

30.3411.68

%EP

Pensioner, Living AloneNon-Contributory Pension

Mid-terraced houseRural, Oil Heating

271.49 BER E1

83.7135.37

%EP extreme

BER C3

58.1924.58

%EP extreme

BER B2

35.1214.84

%EP