Introduction

To understand the impact of the energy transition on the fuel poor, it is crucial to first understand its impact on the energy system at large.

Energy transition refers to the global energy sector’s shift from fossil-based systems of energy production and consumption to renewable energy sources (S&P Global, 2020). The energy system must, therefore, undergo a fundamental change to accommodate the increasing amounts of flexibility in the system and changing consumer behaviour. Flexibility for innovators will, in turn, need to be balanced with stability for investors; retailers will also require clear price signals to launch innovative business models.

Fuel poverty remains a complex and persistent problem, exacerbated by the COVID19 pandemic and likely to be further affected by escalating decarbonisation efforts.

In February 2021, Government released an updated fuel poverty strategy for England (Sky News, 2021). In line with energy transition and climate change requirements, the strategy focuses heavily on policies to update the energy efficiency of housing, with £2.5 billion earmarked for the Home Upgrade Grant (it is crucial to note that long-term funding for the Grant has not yet been approved (Committee on Fuel Poverty, 2021). It sets out a plan for additional investments of over £10 billion into energy efficiency improvement regulations for the Private Rented Sector, and a further £60 million to be invested in retrofitting social housing. England also updated its fuel poverty metrics from ‘Low Income, High Cost’ (LIHC) to ‘Low Income, Low Energy Efficiency’ (LILEE) to prioritise home insulation (HM Government, 2021). This efficiency focus is also mirrored in Government’s 10 Point Plan for a Green Industrial Revolution (Gov.uk, 2020).