
What would it take to make winter heating more affordable and address a root cause of ‘fuel poverty’ in Tasmania?
paul mallett is passionate about addressing ‘fuel poverty’ in Tasmania. As the nation’s coldest state in winter, heating is essential. Based on his community service experience, paul knows too many vulnerable Tasmanian’s have to choose between “heating and eating” through the middle of every year due to large energy bills.
Given this, paul calls for the development and delivery of an Affordable Warmth Strategy for Tasmania. This locally tailored strategy would be informed by models from Europe and combine financial support, energy efficiency improvements, community engagement, and cross-sector collaboration.
The Challenge of Fuel Poverty
Fuel poverty occurs when a household cannot afford to keep their home adequately heated at reasonable cost without sacrificing other essentials. In Tasmania, heating is a necessity for health and wellbeing, especially during harsh winters. Yet there is currently no dedicated state strategy addressing fuel poverty, unlike in the UK and Europe where fuel poverty policies have developed over decades.
Fuel poverty is not well defined in Australia, however in the UK fuel poverty occurs when households spend more than 10% of their income on fuel to achieve adequate levels of warmth in the home. According to the World Health Organisation (WHO), adequate warmth is defined as 18˚C for active people and 21˚C for individuals leading more sedentary lives such as the aged.
The causes of fuel poverty are many and varied, however contributory factors include low income, high energy costs, poor building standards, inadequate thermal insulation, and inefficient or expensive heating systems. In addition to the financial impact, the health consequences of fuel poverty are known to include physiological changes in the body, including hypothermia, cardiovascular and respiratory disease, asthma and mould sensitivity, stress and depression, and even premature death. Households over represented in the fuel-poor population identified internationally include older people on low incomes, single parents especially those with young children, people with disabilities, unemployed people especially those under 25, and the long term unemployed.
Fuel poverty contributes to poor health outcomes (respiratory, cardiovascular, mental health), increased energy debt, and social isolation. Low-income households, renters, older adults, and those living in energy-inefficient housing are disproportionately affected.
Delivering Affordable Warmth in Tasmania
Based on his understanding of European programs to address fuel poverty, paul advocates for:
- Targeted financial support and subsidies, including a continuation of power bill relief currently offered in Tasmania. In Europe, Winter Fuel Payments and Cold Weather Payments provide direct financial assistance to vulnerable households during cold periods.
- Energy bills discounts and grants targeted to low-income households to offset heating costs particularly for renters and pensioners.
- Energy efficiency programs including (see also posts on passive house standard and Energy Performance Certification) :
- Home insulation and retrofit schemes. Commence large-scale insulation and draught-proofing programs focused on vulnerable households. In the UK’s Energy Company Obligation (ECO) require energy suppliers to fund insulation and efficiency improvements for low-income homes.
- Affordable access to efficient heating systems. Subsidized replacement of old, inefficient heaters with energy-efficient models (heat pumps, modern gas/electric heating).
- Data-driven identification and monitoring, including the adoption of a local definition of fuel poverty based on household income, energy costs, and thermal comfort standards. And the development of baseline data and regular monitoring to measure prevalence and progress. This enables targeted interventions and resource allocation. Energy retailers hold very clear billing data (high bill homes) that could be used to help identify homes to retrofit.
- Cross-sector collaboration including coordination between government, energy retailers, local councils, and community organisations to deliver integrated support services. Train frontline health and social workers to identify and refer households at risk of fuel poverty. Develop programs linking fuel poverty alleviation with health and housing services.
- Community engagement and education, including programs to educate households on energy saving, efficient heating use, and accessing assistance. Run campaigns on managing home energy use, available supports, and understanding energy bills. Empower community groups to assist households and foster peer support networks.
paul believes financial supports (such as points 1 and 2 above) are essential but not sufficient to address the root causes of the issue – poorly insulated homes and energy inefficient heating appliances. paul advocates strongly for retrofitting programs to improve the performance of the housing stock, making the properties more comfortable to live in and reducing the financial burden on the residents to heat the properties each winter.
Inspriation
paul investigated strategies deployed in the United Kingdom to deliver “affordable warmth” in 2009 as part of a professional study tour (see post). More than a decade and a half later, the issue remains a critical social, economic and health issue for Tasmania. At the time paul wrote a report with dozens of recommendations to government on how to deliver affordable warmth. The above policy position is based on that study.