UKERC Energy Data Centre: ETI Publications

UKERC Home >> EDC Home >> ETI Publications >> Back to Results >> Value Management - Overcoming barriers to smarter heat solutions in UK homes. Annex 2b: Cost benefit analysis of policies

Value Management - Overcoming barriers to smarter heat solutions in UK homes. Annex 2b: Cost benefit analysis of policies


Citation Frontier Economics Value Management - Overcoming barriers to smarter heat solutions in UK homes. Annex 2b: Cost benefit analysis of policies, ETI, 2015. https://doi.org/10.5286/UKERC.EDC.000536.
Cite this using DataCite
Author(s) Frontier Economics
Project partner(s) Frontier Economics Limited
Publisher ETI
DOI https://doi.org/10.5286/UKERC.EDC.000536
Download SSH_SS1401_7.pdf document type
Associated Project(s) ETI-SS1401: Smart Systems and Heat (SSH) Programme - Value Management and Delivery
Associated Dataset(s) No associated datasets
Abstract This project studied how value can be delivered across a smart energy value chain - in the context of the UK. It built a clear understanding of how smart energy systems can deliver combined consumer value alongside commercial value for market participants - producers, suppliers, distributors. The analysis will help to make the commercial deployment of smart energy systems more likely. This £600,000 project was delivered by Frontier Economics, a leading economic consultancy.

The final report has 11 annexes. This is Annex 2b: Cost benefit analysis of policies, and provides a quantitative appraisal of the five policies highlighted as being promising in our evaluation of policy options(annexe 2a):
  • stamp duty rebates;
  • council tax rebates;
  • grants;
  • including energy bills in headline rental prices; and
  • a package of regulation and support for district heat.

Policies such as these will succeed or fail based on their ability to overcome barriers to the take up of low-carbon heating interventions. As many of these barriers are intrinsically difficult to model, many of the most useful insights from this exercise are qualitative in nature, and these are summarised.

In the remainder of this document, we set out the framework used for the quantitative analysis, and present results for each policy in turn.

This document was prepared at the time to contribute to ETI internal thinking and planning only.