It should be noted that each option has unique advantages and disadvantages that impact economies differently. The following table is a guide to assist in making informed decisions.
Regulator - energy company
Confined to eligible vulnerable consumers
Complicates pricing- targeting of measure difficult, cross subsidy, regulatory cost
Rebate, voucher or general low-income support
Operates with cost-reflective pricing, best option in competitive markets, lower regulatory cost
Budget cost, dampens price signals, can be spent on other uses if not energy specific
Disconnection ban, payment relief/plans for vulnerable
Regulator, energy company
Targeted to vulnerable, non-price intervention
Regulatory cost, can be exploited by consumers, cross-subsidy, increases vulnerable consumer risk for suppliers
Efficiency - capital investment
Insulation, energy efficient lighting, appliances incentives
Government, energy company
One off expenditure, potential high pay-back
Rebound effect - consumer spends more in response to savings, budget cost
Energy efficiency advice, energy literacy
Government, regulators, charities
Rebound effect, uncertain outcome
Pre-payment meters, interactive meters/apps, in home displays, solar PV
Can be targeted, potential high pay-back
One-off cost, relies on consumer uptake, digital literacy
