Energy Advancements Must be Sustainable
Overall, energy efficiency in the UK has improved in the past few years. While these improvements are notable, the fight for greener energy is just beginning. Gas and electricity markets must continue their progress towards more environmentally friendly production while considering the impact the resulting cost will have on customers.
The UK Government is calling for the development of gas and electricity energy programs that are sustainable well into the future. Power stations contribute about 33% of the total carbon dioxide emissions, and residential and industrial emissions comprise another 33%. Innovations in these three sectors resulted in a 4% decline in emissions from 2006 to 2007, with the bulk of this improvement attributed to conversions from coal to gas and renewable energy solutions.
Total energy consumption in the UK has decreased each year since 2005, with a 3% reduction in 2007. A 3% drop in electricity usage and 4% drop in gas usage were reported. In order to meet Government guidelines, the gas and electricity sectors must continue to accomplish improved energy efficiency each year.
One of the most difficult challenges for the fuel markets is to balance the move toward greener energy with the financial burdens placed on customers. Fuel prices have reached some of their highest levels in recent years, and some consumers have struggled to keep up with the escalating costs. This comes in the midst of one of the shakiest economic periods in recent history. Statistics reveal that in 2006, 3.5 million UK households were in fuel poverty, and 2.75 million of these were classified as vulnerable households. Fuel poverty households spend greater than 10% of their total income on fuel to keep their homes warm. Final reports of fuel poverty households for 2007 and 2008 have not been finalised, but estimates are that the increases in fuel poverty households were .7 million in 2007 and .5 million in 2008.
Ofgem, the Office of Gas and Electricity Markets, works with the Government and the gas and electricity markets to achieve the sustainable development targets established by the Government. Ofgem regulates the gas and electricity sectors to ensure that consumers are protected from unfair practices. This agency is particularly interested in helping fuel poverty households and has a goal of eliminating fuel poverty by 2018. Ofgem drives low carbon initiatives and facilitates projects aimed at meeting carbon dioxide reduction.
The gas and electricity sectors have achieved positive results from their efforts in the past several years to save energy, protect the nations supply of fuel, reduce carbon dioxide emissions, and lower energy costs. Ofgem has played a large role in the energy sectors reaching and exceeding low carbon goals. Concentrated effort and further innovations are needed, however, in order to meet the Governments targets for continual improvement.
