In recognition that vulnerable consumers often spend a higher percentage of their income on energy, targeted energy efficiency programs are recognised as an effective assistance measure.
- Vulnerable consumers often lack the financial means to invest in energy efficiency measures and technologies.
- In the case of those renting properties, there are “split incentives” where the owner of the property needs to invest in the efficiency measure but has no incentive when utilities bills are paid by the tenants.
- Investments in better insulation, LED lighting and more energy efficient household appliances deliver recurring benefits to vulnerable consumers but can also lead to a “rebound effect” where the consumer uses more energy in response to the savings.
- When delivered through targeted public investment, the pay-back in terms of reduced energy bills can be more effectively captured by vulnerable consumers than general energy efficiency schemes applied to energy companies.
