The economy, immigration, the Irish border.
These were a few of the key topics leading up to the EU referendum vote, and all three continue to be focal points in the ongoing Brexit negotiations between the UK and Brussels. What wasn’t talked about so much, however, was the direct impact that Brexit will have on the ‘daily lives’ of people in the UK, and recent findings are showing that energy prices are expected to rise as a result of Brexit.
In a recent open letter to the President of the European Commission, Jean-Claude Juncker, and UK Prime Minister, Theresa May, a collective of UK and EU companies urged both leaders to have strong stances on climate and energy to foster prosperity and enhance the ability of both parties to tackle climate change. The letter also warned that a no-deal Brexit scenario, amongst many other things, would lead to an increase in UK energy bills.
How will this impact the daily lives of people in the UK?
For a start, an increase in energy prices could lead to what is commonly known as ‘fuel poverty’, a household situation which can damage people’s quality of life and health, as well as impose wider costs on the community. OFGEM currently estimates that as of May 2018, the average variable tariff for a dual fuel customer was £1,138 per year, which equates to nearly 5% of the average UK household budget, and given how the UK hasn’t seen average wage increases of 3% since 2015, an increase in energy prices will be sure to put a strain on households.
It is important to note, however, that fuel poverty isn’t necessarily just down to energy costs.
Many houses in the UK aren’t using energy efficiently, meaning there is a bigger chance that energy is being wasted. Households are thus having to spend more to keep their homes warm, and according to EU analysis, UK homes are some of the most expensive to heat in Europe because of poor maintenance and insulation, with 30% of homes in England having an EPC (Energy Performance Certificate) rating of E, F or G; the lowest brackets.
What this suggests is that there is maneuvering room to mitigate rising energy costs through more energy efficient options, and in the event of a no-deal or an unfavourable one, these options will provide a much needed safety net amidst projected energy price spikes. So what can be done?
Firstly, improving home insulation has many upsides in saving money whilst significantly reducing heat loss.
According to the Energy Savings Trust, a household can save yearly amounts of anywhere from £285 to £395 with loft insulation, £330 to £725 with cavity walls and £40 to £65 with floor insulation; just to name a few money savings options.
The Energy Savings Trust also found that lighting accounts for 15 percent of a typical household’s electricity bill, and that significant savings could be made through an array of energy efficient practices and purchases such as changing which bulbs you use and how you use them. LEDs, for example, are said to be more efficient than CFLs (compact fluorescent lamps) and will save you more money in the long term. So, by replacing all bulbs in your home with LED alternatives, a household can save around £35 a year on electricity bills.
What these findings reveal is that energy inefficiency is very much a reality for many households here in the UK, and given how there are indeed options to counter energy efficiency, this begs the question, “why aren’t more people employing these energy saving options”?
There are three possibilities why this may be.
Firstly, upgrading a house to become more energy efficient does incur an initial upfront cost, which for some households might be too expensive. There is also the strong possibility that information is not disseminated in a way which people can come by easily, and thus the benefits of energy efficient upgrades are simply being lost upon the public. Finally, people may also not be pursuing energy efficient practices due to a lack of ‘motivation’.
What is interesting about these reasons is that all, save the ‘lack of motivation’, have traditionally had solutions. This is obvious owing to the fact that motivation is a personal and intrinsic human behaviour, and therefore is almost impossible to change using an overarching solution. Or is it?
The Manchester based energy management and trading company, EnergiMine are developing a blockchain powered EnergiToken (ETK) rewards platform. This platform will allow people to earn EnergiTokens for partaking in energy efficient practices, such as using low carbon transport, using less energy at work, amongst other things. Once obtaining ETK, people will be able to use EnergiTokens for an array of different purposes, ranging from paying off their energy bills, purchasing energy efficient appliances, trading their tokens on exchanges, and using ETK as a payment method such as at electric car charging points.
One of EnergiMine’s partners, ON5, already offer strategic programmes and workshops for communities, homes and businesses, to help them reduce their energy consumption, and subsequently their energy bills. ON5 value clear and accurate information, finding innovative solutions, and using digital technological tools and campaigns to enable everyone to become an ‘eco-actor’ by making simple changes to their current consumption habits. With simple yet effective guidance from ON5, and the incentivising reward of EnergiToken, changing consumption behaviour has never been more beneficial for the consumer.
Therefore, if energy bills are to rise as a result of Brexit, these findings refreshingly reveal that there are indeed alternatives to counter this, and what’s more, the impact of energy often comes down to how one views and consumes energy.
Use less, save more.
