Energy networks, justice, and vulnerability
Researchers from the Supergen Energy Networks Hub and the Fair Energy Futures research communities explore the effects of the net-zero energy transition on vulnerable communities.
Energy networks need to evolve quickly to meet the UK government's energy and climate targets. The UK Government has launched a “Clean Power Mission” to deliver at least 95% low-carbon electricity generation by 2030. At the same time, more electricity will be required for newly deployed heat pumps and electric vehicles to meet the UK’s climate commitments. Achieving these goals will require expanding some energy networks (electricity and heat in particular), while scaling down or changing the use of others (gas).
At the same time, energy poverty and vulnerability in the UK require urgent attention. An estimated 13% of UK households live in fuel poverty. Some of those households are especially vulnerable (older persons, people with poor health, people on very low incomes and those in poor quality housing). These groups struggle to cope with sudden increases in energy prices or supply disruptions and face challenges accessing essential energy services, such as heating or cooling, which impact their health and well-being. Upgrading networks as part of the Clean Power Mission could improve reliability and enable access to lower-cost renewable energy, helping to alleviate pressures on vulnerable households. However, these households may also be disproportionately exposed to disruption associated with the transition.
This blog combines emerging insights from work undertaken by the Supergen Energy Networks Hub and the Fair Energy Futures research community at the University of Leeds to highlight current and emerging issues around energy networks, justice and vulnerability. It explores how changes to energy networks to reduce emissions could improve or worsen these challenges. We hope to use this piece as a starting point for further engagement exploring these issues.
Written by Dr Sheridan Few, Professor Lucie Middlemiss, Dr Caitlin Robinson, Dr Richard Oduro, and Professor Peter Taylor.
How do energy networks currently help to alleviate poverty and vulnerability?
Energy networks and their operators help to alleviate energy poverty and vulnerability in at least three ways: network improvements and innovation, data gathering and sharing, and direct support of vulnerable communities. However, some of the ways in which networks are physically set up and financed also exacerbate inequalities and vulnerabilities.
First and foremost, network operators maintain and invest in networks to increase the reliability of service. Innovation and pilot programmes led by network operators (through the Network Innovation Allowance & Strategic Innovation Fund) further support communities with particular needs. Examples include the Energywise project incentivising households to use energy at off-peak times and the Re-Heat programme funding the installation of heat pumps for low-income homeowners. However, there is a need to go beyond these pilot projects to apply their results more widely.
Network operators also develop and maintain the Priority Services Register. This identifies individuals who are vulnerable or at risk of energy poverty, and monitors progress to reduce vulnerability. Targeted data sharing enables tailored interventions to address their energy needs. For example, regional data sharing agreements between Electricity Northwest and UK Power Networks enable collaboration on emissions reductions and supporting energy-poor households.
Finally, network operators engage directly with communities, providing non-financial support and assistance to those on the priority services register during outages or when individuals are struggling to afford energy. However, there is a strong focus on advice, which can only go so far for energy-poor households that are often already experts at managing limited budgets and using energy efficiently.
How do energy networks currently exacerbate poverty and vulnerability?
Network investment and maintenance are paid for through standing charges on bills – a fixed daily amount which is charged no matter how much energy is used. As highlighted by National Energy Action, low-income households often spend less than average on energy, and so a higher proportion of what they pay goes towards these standing charges. These charges are particularly problematic for those on prepayment meters, who may have to pay a backlog of charges before being able to access gas and electricity.
People living in more remote areas, for example, those living off the gas network, are more likely to be fuel poor. These groups often have access to less reliable network services. The growing digitalisation of the way people engage with energy could make those who lack technical literacy more vulnerable.
How could net-zero energy networks help to reduce energy vulnerability?
Developing networks that can support the UK’s climate commitments could help to address energy poverty and vulnerability in multiple ways. However, if changes to energy networks are not carefully managed, they risk making energy poverty and vulnerability worse. This is because of the ways that network investments and the cost of maintenance are recovered, and through limiting options for energy-poor and vulnerable households in the transition.
Improved electricity networks could enable widespread access to heat pumps and electric vehicles. This would make household heat and transport costs dependent on the cost of electricity rather than the cost of gas and petrol. As we move to a more renewable electricity system, households will benefit from lower-cost renewable energy decoupled from the price of fossil fuels.
Heat networks in urban areas can provide lower-cost heat to households and businesses where waste heat is available. Government-owned social housing, home to some less affluent households, may be particularly suitable for heat networks, owing to the density of households and more straightforward contracts.
There could also be opportunities for energy-poor and vulnerable households to be financially rewarded for reducing energy use in ways that support decarbonisation and reduce strains on networks. For example, the uptake of energy efficiency measures (e.g. home insulation) could reduce overall heat demand. This could allow smaller heat pumps to be installed and reduce the need to upgrade some electricity networks. This would mean lower upgrade costs for network operators. With appropriate financial mechanisms, a share of those reduced costs could then be passed on to customers in the form of electricity bill reductions. A number of electricity network operators already offer bill reductions for customers who change times of electricity use to those when networks are not constrained, but these schemes could be broadened to encompass a wider range of measures to reduce energy demand, or become more targeted towards vulnerable households.
How could net-zero energy networks exacerbate energy vulnerability?
The benefits of net-zero energy networks may not be available to all, and the costs may not be shared fairly. Those living in rented properties may not have the ability to install heat pumps or electric vehicle chargers to make use of upgraded networks. Those living in flats or houses without off-street parking may be unable to benefit from network upgrades to facilitate electric vehicle charging.
Whilst heat networks offer the potential for lower heating costs in social housing, careful regulation is required to avoid overcharging where households rely on this network as their sole source of heat.
If households are unable to alter the time at which they use electricity (e.g. those on ventilators, or at home all day), flexible tariffs could result in higher costs. Lack of choice could be particularly problematic for those with limited flexibility, whose options may already be disproportionately limited.
Without adequate regulation, less affluent households could overcontribute to the upgrade and maintenance costs of energy networks switching from gas to electricity. More affluent households are transitioning to electric heat pumps and disconnecting from the gas grid. Fewer households attached to the gas grid means that maintenance costs are spread across fewer (less affluent) households, leading to increased standing charges. At the same time, the costs of upgrading networks to accommodate more heat pumps are spread across standing charges of all households, including those with gas boilers. Whilst not permitted by current regulation, the gas grid may also be deprioritised for investment and maintenance in the longer term, which could mean less reliable heat for the energy poor who remain connected.
What are the opportunities and challenges around justice in energy network transitions?
Developing procedures that provide opportunities for meaningful input from diverse parties affected by changes to energy networks can help to avoid exacerbating inequalities in the energy transition. Such procedures are particularly important in energy network development because of how networks determine energy options.
Local authorities typically consider supporting these members of the community as a key part of their remit. However, some local authorities have highlighted a lack of meaningful community engagement as a limitation in their energy planning processes. This could lead to a lack of trust in future low-carbon energy transitions. The Oldham Net Zero Accelerator, a partnership between the local authority and community energy organisation to deliver local energy transitions with community participation to ensure local social, economic, and environmental benefits, represents an innovative approach to overcoming this challenge.
For energy networks, the distribution of future patterns of supply and demand may look different if they are based upon community priorities (e.g. maximising community wealth by installing generation and EV charging facilities on community buildings). If these issues are not considered in network plans, it may not be possible to connect these projects.
Beyond the unjust outcomes of a transition, failing to properly take account of procedural and representational justice in the energy transition could jeopardise efforts to deliver the government’s Clean Power Mission. Early intimations of this are visible in local resistance to electricity transmission infrastructure on the East Coast. Whilst central government intervention could help to overcome legal challenges in the short term, broader engagement is necessary to deliver the net-zero transition.
What next?
Through the Supergen Energy Networks Hub, and in collaboration with the Fair Energy Futures research community, we are planning to further explore issues around energy networks, vulnerability, poverty, and energy justice. In doing so, we plan to highlight challenges and examples of good practice and to chart a route forward for energy networks capable of delivering net zero, whilst maximising opportunities to address existing inequalities and adhering to principles of energy justice.
We are planning to hold a workshop on these themes in summer/autumn 2025 to identify areas for further research and practical guidelines. If you’re interested, please get in touch or complete this expression of interest form, and we will contact you with further details.
If you'd like to help shape this work, applications are still open for a postdoctoral role as Research Fellow in Energy Network Policy for a Just Net Zero Transition at the time of writing. The deadline is Monday 19 May.
