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Professor Thiemo Fetzer says there are cheaper alternatives to the EPG that should be considered

Professor Thiemo Fetzer at the University of Warwick said: "It is widely reported that the Chancellor is considering extending the EPG for 3 more months. 

"The EPG is a safeguard for struggling householders. But the EPG is also unnecessarily costly for taxpayers and disproportionately benefits well-off households that have a huge carbon footprint. There are cheaper alternatives.  

"Adjusting the EPG could create stronger incentives to save energy, help many more vulnerable households lower their energy bills, strengthen energy savings investments permanently cutting their CO2 emissions through retrofitting and contribute to greater energy security for the UK. 

"The Chancellor can achieve this by: 

  • reforming the EPG to introduce, for example, a two-tier tariff, targeting support at less-well-off households without eroding energy savings incentives;


  • improving the targeting of existing means-tested retrofit programs


  • creating tax-credits to encourage homeowner energy savings upgrades for those able to pay for their own improvements; and


  • reviewing planning restrictions on proven interventions such as roof-top solar panels.

"Our research has shown that if all properties in England and Wales were upgraded to their highest energy efficiency standard almost 30% of their energy use could be saved - around 25 to 40 million tons of CO2 per year. There would also be a rapid return on such a programme - at October 2022 prices, investment in retrofitting energy efficiency measures would permanently save £10bn a year, paying for itself in 6 to 7 years."