Actions to mitigate energy poverty in the private rented sector
The cost of energy and the need for energy efficiency renovation have contributed to an increase in energy-poor residents throughout Europe. In the private rented sector (PRS), there is a lack of information about who is at risk of energy poverty and what their needs are. The goal of the EU-funded ENPOR project has therefore been to make energy poverty more detectable and measurable, while supporting the adaptation and implementation of policies tailored to the needs of the PRS in Austria, Croatia, Germany, Greece, Estonia, Italy, and the Netherlands.
Regional action groups
Energy poverty has many causes, but for energy-poor tenants, renovation presents an additional challenge. For example, homeowners benefit directly from energy efficiency upgrades. Not only do they save money on the cost of energy resulting from reduced demand, but their property values increase. However, landlords do not have similar perceived incentives for improving their property, as their tenants are the ones who will benefit from the energy savings which landlords must invest in. This concept, known as the split incentive, further exacerbates energy poverty among tenants, who tend to live in worse-performing buildings. A key feature of ENPOR is the coordination of REgional ACTion (REACT) groups to represent the interests of both landlords and tenants when creating solutions to address split incentives. REACT groups bring together a wide variety of stakeholders, including property owners, tenant and consumer associations and related market actors. In collaboration with government representatives, REACT groups examined 10 policies impacting the PRS in the 7 European countries. To address the energy needs of different regions, ENPOR conducted a thorough review of 114 existing policies to clarify where guidelines and practices fall short in addressing the needs of energy-poor renters. Project coordinator Vlasis Oikonomou says: “The REACT groups participated in updating and adjusting national policies for the PRS, which were selected based on their impact factor for energy-poor tenants.”
Updating policies to fight energy poverty
The policies that ENPOR addresses target training and information, grants for renovation and programme support. In Italy, the pilot policy aims to invigorate information and training campaigns for landlords, tenants and building managers regarding opportunities for energy efficiency renovation and practices for improving energy use. In Estonia, the targeted policy addresses access to the national renovation grant – an important tool for reducing energy poverty. Adjustment of this policy opens the door to apartment building communities that want to upgrade their building. The pilot in Germany includes tailored advisory tools and use of an innovative prepaid metering model and app. To participate, residents switch from their current electricity provider and adopt a digital prepaid meter that allows the consumer to closely monitor energy use. As part of the Greek pilot, the Energy Efficiency Obligation Scheme was modified to include targeted guidance by the energy suppliers to energy poor households, and public aid was adjusted with specific budget allocations for energy poor households and a subsidy for landlords of rented buildings. In addition to the policies addressed by ENPOR, the project has been able to offer a wealth of data on energy poverty in the PRS through the launch of an Energy Poverty Dashboard. This tool, organised by country and region, allows users to visually study the geographies of energy poverty indicators and policies catering to the PRS. Moving forward, it will be beneficial for countries to maintain the upgraded policies, but greater consideration of the data from the energy poverty dashboard in decision-making processes is also important. Finally, in order to combat the split incentives issue, a Split Incentive Quantification Tool has been developed to calculate the split in energy investments required between landlord and tenant, based on the benefits they reap. Energy poverty, particularly in the PRS, is a growing problem and difficult to solve. ENPOR, by focusing on inclusive co-creation practices, is moving in the right direction. Oikonomou states: “ENPOR’s impacts are numerous, but most importantly, the project has heightened awareness and understanding of energy poverty in the PRS among policymakers and stakeholders.”
Keywords
ENPOR, energy poverty, energy-poor, REACT groups, private rented sector, landlords, tenants, energy poverty policies, energy poverty dashboard
