Edinburgh:
Promoting energy saving in low-income households

EA.UE

,

Country: a) Western Europeb) United Kingdom
Language:
Type: Project, 1
Area: City/Town, 100,000 - 1 mill.
Actors: Local government
Funding: Local government
Topics: Climate protection
Energy
Environmental education
Social equity
Objectives: Improve access to information
Improve environmental efficiency
Increase public awareness
Reduce energy consumption
Instruments:

Abstract:

At the start in 1992 the Edinburgh-based Billsaver project had been an energy efficiency research project which was directed towards the special target group of low-income households. From 1995 onwards it turned into a general study on the real-life energy usage in households. By this long-term field study of actual consumer behaviour the Billsaver project is distinguished from theoretical studies on the potential of energy saving in the domestic sector. It is an example of good practice for the following reasons:

Concept and aims

166

Billsavers is an innovatory monitoring project field-testing the energy savings which can be achieved by using energy efficient appliances and lighting. The project was set up by the Lothian and Edinburgh Environmental Partnership (LEEP) in order to assess the potential for developing businesses to promote take-up and use of energy efficient domestic appliances and low energy lighting in low-income households in Edinburgh. It was the first project of this kind in the United Kingdom.

The Billsavers project is designed in two phases based on "before and after" comparison. The first phase involves a preliminary survey of the potential market, financial mechanisms and technical monitoring to develop a picture of the current usage of appliances and their relative efficiency. This study includes information on the range of appliances present, their condition and method of purchase. The second phase of the project is directed to four different types of intervention:

  1. Comprehensive energy advice and client education;
  2. Maximising the energy efficiency of existing appliances through repairs;
  3. Promoting the use of low-energy light fittings;
  4. Promoting the use of energy efficient appliances (e.g. washing machines, refrigerators, freezers).

Both phases of the Billsaver project are designed to demonstrate the viability of delivering services to households, based on the fact that capital cost being more than offset by savings.

Implementation

In 1992 the Billsaver project started with a feasibility study which was sponsored and technically supported by Scottish Power, the regional electricity company. From December 1992 to March 1993 an initial survey was carried out to determine the number , condition, and age of electrical domestic appliances (fridges, fridge-freezers, freezers, washing machines, cookers etc.) in 300 households in areas of low-income housing in Edinburgh. These surveys included over 500 different questions concerning household composition, type of house, insulation standards, heating systems, ownership and use of appliances and lighting. For two further years 100 of the households surveyed were then selected for longer-term detailed monitoring, being representative households in terms of household size, appliance ownership and so on. During the test phase households meters were installed in order to measure fuel consumption every two weeks. Meters were fitted to individual white goods appliance and to the lighting circuits. In addition, the household kept 'energy diaries' in which they recorded their daily use of heat, individual appliances and lighting. The field workers can therefore cross-check the peoples' recording with the meter data which was entered into a database. This proved to be sensible in order to establish not only the level of energy consumption but also actual patterns of use. Particular examples are fill-ratio for fridges, or the number and types of washes in a washing machine.

The purpose of the feasibility study was to establish a baseline of electricity consumption across all four seasons. After analysing the first year’s data and identifying the most significant savings that could be made, an application was made to the EU LIFE programme to fund full scale research. As the application was successful a new implementation phase could be started. Each household was provided with energy efficient bulbs, where their use of lights warranted this, and for those with high consumption appliances these were replaced with new, energy efficient appliances. All households received advice on how to save energy with respect to their lighting and appliances. During this second year the Billsaver project continued to monitor consumption via meters and energy diaries to establish exactly how much energy was saved in the longer term. Further sub-metering was undertaken to allow sample analysis on other appliances and portable light fittings not metered through the lighting circuit.

Since the underlying principle of the project was to develop a model which can be applied elsewhere, LEEP also sought funding to extend the range of participating households to include households on middle to high incomes. As this part of the project was also approved the number of test households was expanded in January 1995. 300 additional households were recruited for initial interviews, with 100 of these selected for long-term monitoring. This stage of the project will be completed in late 1997.

Results and impacts

The results of the first year’s monitoring were published in 1995 as the "Counting the cost" report. This was launched at a public seminar in May 1995. The post intervention results were published as the "Securing the Savings" report in 1996. The findings of the second stage monitoring of the middle to high income sample households will be published as a third report after the completion of the study in late 1997.

The completion of the first year’s monitoring demonstrated that the chosen approach was able both to maintain client participation as well as to provide information which could help the clients to become more energy efficient.

Contrary to initial expectations of the low-income target group, client awareness and interest in the issue of energy saving and environmental impacts and benefits is high, and after the study only four of the hundred test households withdrew from their commitment to pay attention to energy saving usage of fuel. This level of commitment contrasts strongly with the response to the research that had been undertaken by privatised electricity companies. This result may be due to the local profile of the LEEP and the way it develops initiatives by involving local agencies. In addition, the network approach in the Billsaver concept involves co-operation with local committees which includes local residents.

The findings of the Billsaver project may be used to develop the long-term objective to set up a service for households in Edinburgh which will supply energy-efficient appliances and lighting to clients who would pay for them from the savings they make on fuel bills. LEEP has been in discussion for various agencies over setting up self financing of energy efficiency loans, the first of which is a CFL loans and purchasing project operating through local credit unions. Development of an Energy Services Company may be a longer term opportunity incorporating aspects of consultancy, soft financing or loans, retailing, and contracting (including domestic contract energy management).

The results of the first year’s monitoring were published in 1995 as the "Counting the cost" report. This was launched at a public seminar in May 1995. The post intervention results were published as the "Securing the Savings" report in 1996. The findings of the second stage monitoring of the middle to high income sample households will be published as a third report after the completion of the study in late 1997.

The completion of the first year’s monitoring demonstrated that the chosen approach was able both to maintain client participation as well as to provide information which could help the clients to become more energy efficient.

Contrary to initial expectations of the low-income target group, client awareness and interest in the issue of energy saving and environmental impacts and benefits is high, and after the study only four of the hundred test households withdrew from their commitment to pay attention to energy saving usage of fuel. This level of commitment contrasts strongly with the response to the research that had been undertaken by privatised electricity companies. This result may be due to the local profile of the LEEP and the way it develops initiatives by involving local agencies. In addition, the network approach in the Billsaver concept involves co-operation with local committees which includes local residents.

The findings of the Billsaver project may be used to develop the long-term objective to set up a service for households in Edinburgh which will supply energy-efficient appliances and lighting to clients who would pay for them from the savings they make on fuel bills. LEEP has been in discussion for various agencies over setting up self financing of energy efficiency loans, the first of which is a CFL loans and purchasing project operating through local credit unions. Development of an Energy Services Company may be a longer term opportunity incorporating aspects of consultancy, soft financing or loans, retailing, and contracting (including domestic contract energy management).

Financing and resources used

Billsavers is 'core' funded by the City of Edinburgh Council. Initial sponsorship and technical support was provided by Scottish Power. The extension of the project from its first year feasibility work was financed through a grant from the EU LIFE programme. Other project support was given by the Member of the Association of Domestic Electrical Appliances (AMDEA), the DECADE project of the Environmental Change Unit, University of Oxford, Energy Action Scotland, the Energy Action Grants Agency Trust, GE Lighting and Osram (both CFLs manufactures), and the Scottish Office.

Actors and structures

The Lothian and Edinburgh Environmental Partnership (LEEP) was set up in 1991 to promote sustainable economic development. It is a partnership between local and regional government, Edinburgh University, Scottish Enterprise and various voluntary agencies. The organisation is a charity with a Board of Directors including representatives from the City of Edinburgh Council, local trusts and the private sector. The main focus of activity involves transport, recycling and energy initiatives. Projects are developed to become self sustaining and to operate independently of LEEP as financial autonomous businesses.

For the Billsaver project LEEP was assisted by the March Consulting Group and energy management consultancy who were the authors of the Government Report on Energy Efficiency in 1990.

In addition, the project cooperates closely with the DECADE project in the Environmental Change Unit of the University of Oxford. This research department is specialised in examining behavioural matters with respect to energy efficiency. Billsavers provides the Oxford project with field work information which will directly inform both their own project as well as other work being carried out in EU member states.

Evaluation and statements

The final stage of the programme is still in progress and its findings will be available in early 1998. However, the findings of the first sample demonstrate that in low-income households the potential for significant savings in electricity usage with respect to lighting and cold appliances are possible. Replacement of other large appliances is not cost effective, nor is repair cost justified in terms of energy savings. Where replacement is taking place at any rate an energy efficient option will repay part if not all of the investment cost over the life of the appliance. In most extreme situations cold appliance and energy efficient lighting repay their investment cost in far shorter periods.

Billsavers has demonstrated a further cost-effective strategy in addressing the problem of fuel poverty in low-income households. One key issue which must be addressed is more precise identification of those lights and appliances which can be cost-effectively replaced.

Source of Information

Barnham, Robert 1994: BILLSAVERS - A pilot project promoting the use of energy efficient appliances and lighting in low come households, in: Senatsverwaltung für Stadtentwicklung und Umweltschutz, (Hg.), Energiepolitische Ansätze zur CO2 Minderung im Gebäudebereich, Berlin, pp.51-54

Personal correspondence with the project manager

Contact:

Name:Barnham
Firstname:Robert
Telefon:+44 / 131 / 555 40 10
Telefax:+44 / 131 / 555 27 68
Address:Lothian + Edinburgh Regional
Partnership
Bonnington Mill Business
Centre
72 Newhaven Road
Edinburgh

Cities:

Edinburgh:

The City of Edinburgh is the administrative centre of the Lothian Region and the capital of Scotland. After Glasgow it is the second largest city in Scotland. In contrast to the Glasgow's industrial centre it is the financial, cultural, educational and service industry hub. Among the city’s products are paper, whisky, electrical and electronical equipment, food products and chemicals. The printing and publishing industry is also well established. Edinburgh’s port at the districts of Leith and Granton is a major service point for vessels associated with the North Sea petroleum industry. In addition, Edinburgh is a major tourist centre of the United Kingdom.

Population:

450000

Project was added at 10.11.1998
Project was changed at 21.08.2001

Extract from the database 'SURBAN - Good practice in urban development', sponsored by: European Commission, DG XI and Land of Berlin
European Academy of the Urban Environment · Bismarckallee 46-48 · D-14193 Berlin · fax: ++49-30-8959 9919