Monthly Archives: September 2017

Why we need a blueprint for Tomorrow’s World

Stine Wilhelmsen, Common Vision Energy and Water Millennial Working Group

What will citizens need and want from future energy and water systems, and what changes are required for their expectations to be met?

This heading set the scene for ‘Tomorrow’s World’ – a one day workshop jointly led by Sustainability First and the National Infrastructure Commission – in which the speakers did their best to set the scene despite the plethora of known unknown clouding the horizon. What will the regulatory landscape look like post-Brexit? In what ways will smart technology continue to revolutionize the utilities industry? How will climate change impact our water and energy security?

When Common Vision invited me to come along to the workshop I was intrigued by the opportunity to hear how representatives from the water and energy sector, regulators, and organisations representing rural communities, low-income households, and the older generation viewed future opportunities and challenges.

Minutes into the first panel, I was struck by the fact that there’s no one-size-fits-all solution for future energy and water demands. People will continue to need and want different things, depending on where and how they live. Whereas millennials growing up in the digital era might get excited about the premise of smart technology controlling their heating, a pensioner could get equally worried about the demise of familiar services. To avoid leaving anyone behind the water and energy industry needs to provide affordable, tailored solutions for all pockets of society.

Generation rent

This rings equally true for initiatives aiming at engaging people in reducing water and energy consumption – a vital aspect of meeting carbon emissions targets. Campaigns encouraging people to invest in energy and water efficiency measures such as insulation is likely to fall flat on an audience of Generation Rent-ers used to moving house every 6 – 12 months.

As an additional 1.8 million households joins the pool of private renters by 2025, finding ways to a) support renters in making their rented properties more energy and water efficient, and b) incentivising landlords to invest in long-term solutions, becomes increasingly important.

The muggy minefield of renting means that many tenants will be deterred from investing in efficiency measures. Even in our group discussion we were unsure about what rights renters had when it came to switching energy providers, or installing a water meter. By 2025, more than half of 20 – 39 year olds will be faced with this issue.

Considering that 90% of households will still be older properties in 2030, the government and the industry should both take responsibility for informing renters of their rights and incentivising landlords to improve the energy and water efficiency of properties.

A millennial perspective

Despite the improbability of ever owning a property, all is not lost for the millennial generation. As the first generation to grow up as digital natives we’re more likely to accept new technological solutions such as smart meters and appliances. This technology bears promise of more personalised services and more efficient use of resources.  In fact, energy demand has fallen by 7% in the last decade, despite population growth. This is promising news for a generation faced with the looming threat of climate change’s impact energy and water security.

This brings me to the third take-away from the day. It is predicted that we’ll see an average temperature rise of 2°C in SE England by 2040 if emissions are not reduced. This means more unpredictable weather; wetter winters, drier summers, as well as increased risk of flooding, drought and heat waves. With this in mind, we need industry leaders to present blueprints for a decarbonised, secure energy and water sector, or plans for innovative behaviour change campaigns. The speakers at the ‘Tomorrow’s World’ workshop did a good job of painting a picture of the challenges ahead, but we still have a way to go in finding solutions to these.

Luckily, there’s loads of simple things we can all do to become a more “ideal” energy and water household, while we wait for the industry and regulators to come up with solutions.

Here’s the 3 things I’ll start with so please join me in shaping tomorrow’s world:

  • Be smarter. Luckily, we’re all responsible for the energy we use in our homes. Figures such as 150 litres of water per day, or 34.82 MWh (3 tonnes of oil equivalent) of energy per year, can be hard to comprehend, but what’s worth remembering is using less energy and water can be fun, simple and save you both money and time. Go through your daily routine & choose some hacks that works for you. This might be ordering a free water saving shower head from your water supplier or switching your lightbulbs to LED. A quick Google will lead you to loads of tips, or get started at waterwise.co.uk or www.energysavingtrust.org.uk.
  • Make the switch to a green energy provider. Even if you’re renting this is super simple, and can help save you money too. There are several 100% renewable energy providers out there, including Good Energy, Ecotricity and Bulb. Visit thebigdeal.com to find out more.
  • In line with the ethos of “Tomorrow’s World” workshop, a solution shared, is a solution doubled, so speak to your flatmates, friends, family, and get them involved in curbing their water and energy use.

 Sustainability First has produced a consumer focused check-list for change for use by energy and water companies, regulators and Government when engaging with stakeholders and planning future services.  The check-list,  ‘Tomorrow’s World for Energy and Water: What will consumers and citizens want in 2030?’  is now available on the Sustainability First website.  Two Common Vision videos from the Tomorrow’s World Workshop can also be viewed from the website: ‘Energy and water in 2030: Different groups and different needs’; and ‘Building citizens awareness of energy and water: A view from millennials’.

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Tomorrow’s World: A sustainable future for the next generation?

Rachel Taylor, Common Vision

What do customers and citizens need and want from future energy and water systems, and what changes are required for their expectations to be met? This was the topic of an event hosted by Sustainability first and the National Infrastructure Commission in July 2017, for which Common Vision convened a “millennial working group” to participate.

To ensure that we are able to continue using energy and water which meets our evolving needs and requires minimal lifestyle changes by 2030, we must begin enacting change now. These sustainable alternatives must take into account the challenges posed population growth, an aging population and climate change – to name a few examples.

Our energy and water systems provide us with the essentials we use and need in our everyday lives, from powering our mobile phones and heating to our showers, baths and drinking water. The provision of energy and water affects all groups in society regardless of background, income or age bracket yet, different groups do have different needs; all of which must be addressed when designing our plan for the future.

For low-income groups, the so-called ‘poverty premium’ is a major concern whereby the poorest in our society often end up paying more than higher-income households for essential goods and services. It is not surprising then that the primary needs for low-income groups were affordability and tariff consistency. Organisations such as the Joseph Rowntree Foundation have been active in this area, calling on the government to do more to help identify and tackle poverty premiums where they arise, especially in light of forecasted inflation. The elderly, as well as those living in rural areas across the UK, have in some cases also fallen victim to the poverty premium if, for example, they are not online and lack the means to acquire the information which would help them explore cheaper or greener options. This clearly demonstrated the need for better information provision, both online and offline, for these affected groups.

As well as this, the increasing life expectancy of the elderly population in the UK is indeed a cause for celebration but it also brings challenges which require us to ensure our future world is adaptable to the physical and mental ailments of this group. We must also not forget that those living in the countryside are the ones often subjected to the impact of new infrastructure developments which need its extra space. It is therefore important to listen to the insights and needs of this group in designing non-intrusive alternatives for the future.

Amongst these different views and voices, what perspectives do millennials bring to the table? Millennials are not only the leaders of tomorrow, but are increasingly, the leaders of today which leaves them with a critical role in shaping the future of energy and water. Not only will they be consumers but will also be leading energy and water companies and systems going forwards. The priorities of our millennial group for in designing these future systems were centred around sustainability, affordability and capacity.

Firstly, millennials are seen as being more environmentally conscious and driven by their personal values when it comes to making choices about utility providers, purchasing certain brands and choosing an employer. This is where in catering to the needs of millennials, energy and water companies can make gains in terms of business benefits.

Secondly, affordability is an issue for many young millennials who are still finding and settling into their careers or living in expensive cities with high rents. Exacerbating this, research suggests that millennials are earning less than the previous generation, an unprecedented trend. Considering these factors, it is important that we ensure there is not a trade-off between sustainability and affordability in choosing a utility provider especially where the common goal is to work towards a more sustainable world.

Thirdly, a common theme which emerged throughout our discussions was the capacity for millennials to act upon their environmentally-friendly values. The high instances of renting among this cohort was cited as the biggest barrier. In a society with increasing costs of living, inflated house prices and lagging wages and job opportunities, getting a foot on the housing ladder has become an impossibility for some. At least, it is not as easy a task as it was for their parents’ generation. This has led to the creation of ‘Generation Rent’ and the number of people under the age of 40 living in rented accommodation is only expected to continue increasing between now and 2025. Those living in rented accommodation have a lot less freedom and incentive to invest in energy and water saving measures such as installing smart meters, insulation, solar panels or low-flow water fixtures. In addition, and is especially the case for many student properties, in flats or houses where bills are included in the price of rent, it is likely the tenants will not even be aware of their provider much less have the motivation to investigate the sustainability policies of these providers. It is unlikely that ‘Generation Rent’ will transform into ‘Generation Buy’ any time soon, therefore, a possible solution to this could be to create incentives for landlords to ensure their rented properties meet certain standards. Undoubtedly, implementation of this would require the attention of policy-makers and the introduction of new government legislation and regulations.

Aside from this, for millennials, choice and trust were also important. This requires better information provision from both suppliers and government as well as being reliable and actively responding to the needs and values of the consumer.

In addressing the needs of all groups, there appeared to be space for collaboration between sectors in ensuring consumers have access to affordable, sustainable and user-friendly services. Meanwhile, technology has also begun to play a role in innovating the way we use and consume energy and water from smart meters to local level initiatives. However, there is still a long way to go in ensuring that the provision and levels of consumption of energy and water are future-proofed and respond to the needs and expectations of our diverse society. To ensure this journey continues, we must engage and respond to the needs of all sections of society from poorest to the richest, urban inhabitants to rural inhabitants, the old and the young.

Sustainability First has produced a consumer focused check-list for change for use by energy and water companies, regulators and Government when engaging with stakeholders and planning future services.  The check-list,  ‘Tomorrow’s World for Energy and Water: What will consumers and citizens want in 2030?’  is now available on the Sustainability First website.  Two Common Vision videos from the Tomorrow’s World Workshop can also be viewed from the website: ‘Energy and water in 2030: Different groups and different needs’; and ‘Building citizens awareness of energy and water: A view from millennials’.