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Fuel Poverty in Great Britain, Germany, Denmark and Spain - relation to grid charging and renewable energy


Highlands and Islands Enterprise (HIE) has commissioned Xero Energy (XE) to examine whether there is any relationship between fuel poverty and locational charging for use of the transmission network. The analysis is in the context of the UK government philosophy that locational charging for grid infrastructure is cost-effective, and thus in the interests of customers – some of the most vulnerable of whom are the fuel poor. The analysis also examines wider links between fuel poverty, energy prices and renewable energy development. In particular, and of direct relevance to the Highlands and Islands, the report considers fuel poverty and the development of renewable energy in sparsely populated areas distant from centres of demand. Comparisons are drawn with other European countries noted for their high levels of renewable energy penetration, namely Denmark, Germany and Spain.