Reduce energy use and maintain quality of life

The NSW Independent Pricing and Regulatory Commission released a Research Report - Determinants of residential energy and water consumption in Sydney and surrounds along with a Fact Sheet and Consumption Comparator. This says that detached houses with one or two people have higher energy bills. Also low-income households tend to be in such houses proportionally increasing their energy bills. The report suggests that energy use can be reduced by replacing resistance electric hot water systems, disconnecting a second fridge (beer fridge), using clothes dryers and
air conditioners less. Both water and energy use can be reduced with low-flow showerheads and tap aerators.

This is all sensible advice. However, Australia has a stock of large inefficient detached houses designed for much larger families than currently occupy them. It would take many decades for these to be replaced with smaller, more efficient housing, even if there were policies in place to make that happen. One solution would be to divide detached housing to make two or three town houses. Alother would be policies to encourge people to share larger houses.

Some policies are in conflict. As an example, resistance hot water systems are now banned for new homes and as replacement in older ones. But new energy efficient hot water systems have a high capital cost, placing them out of reach for low income families. A simple alternative would be to use a smaller resistive electric hot water system. Small electric hot water systems are inexpensive and more efficient than large models, but are now banned.

Also small hot water systems can be placed in the hose near the kitchen and bathroom, resulting in less heat lost in the plumbing and less water loss when the tap is let running waiting for the hot water. Large units have to be placed outside the home, with longer pipe runs, more heat and water wasted.

Contents

Introduction and executive summary 9
1.1 We specified 2 types of model - ‘characteristics’ models and ‘uses’ models 9
1.2 Overview of results for the ‘characteristics’ models 11
1.3 Overview of results for the ‘energy uses’ models 11
1.4 Applying the ‘energy uses’ models to households with the same incomes and the same numbers of occupants
1.5 Policy implications: how to reduce energy consumption while maintaining the quality of life
1.6 Overview of results for the ‘water uses’ model
1.7 The Consumption Comparator
1.8 The structure of the report

2 How we analysed the household survey data 12
2.1 We used regression models to analyse the household survey data 12
2.2 We specified 2 types of model - ‘characteristics’ models and ‘uses’ models 14
2.3 How we present the results 14
2.4 Some of the terms used in this report 15

3 The determinants of electricity consumption 17
3.1 The context: average and median electricity consumption in NSW 17
3.2 The relationship between household characteristics and electricity consumption - the ‘characteristics’ model
3.3 How household characteristics are associated with different uses for electricity
3.4 The relationship between electricity consumption and what it is used for - the ‘energy uses’ model
3.5 How well our ‘energy uses’ model predicts electricity consumption

4 The determinants of gas consumption 34
4.1 The characteristics of households that use gas 35
4.2 The relationship between household characteristics and gas consumption - the ‘characteristics’ model
4.3 The amount of gas used for and cooking, heating and hot water
4.4 The relationship between gas consumption and what it is used for - the 'energy uses’ model
4.5 How well our ‘energy uses’ model predicts gas consumption

5 The determinants of energy usage bills
5.1 Why we used energy bills to estimate consumption
5.2 The relationship between household characteristics and energy bills - the ‘characteristics’ model
5.3 The relationship between energy bills and what energy is used for - the ‘energy uses’ model
5.4 The impact on energy bills and electricity consumption of having a Controlled Load electricity supply
5.5 The impact on energy bills of using gas for hot water and space heating

6 The determinants of energy consumption by income and number of occupants
6.1 The relationship between energy consumption and what it is used for by income group - the ‘energy uses’ model
6.2 The relationship between energy consumption and what it is used for by household size - the ‘energy uses’ model
6.3 Policy implications: how to reduce energy consumption while maintaining the quality of life

7 The determinants of water consumption
7.1 The context: water supply conditions and average consumption in the survey areas
7.2 The relationship between household characteristics and water consumption - the ‘characteristics’ model
7.3 How household characteristics are associated with different uses for water
7.4 The relationship between water consumption and what it is used for - the ‘water uses’ model
7.5 How well our ‘water uses’ model predicts water consumption
7.6 The impact of dwelling type on water consumption

Appendices
A Information about the surveyed households
B Information about our regression analysis
C Detailed regressions results for gas
D Detailed regressions results for energy
E Detailed regressions results by household income and number of occupant 160
F Detailed regressions results for water
G Technical information for electricity and water
H Detailed regression results for electricity

Glossary ...

From: Research Report - Determinants of residential energy and water consumption in Sydney and surrounds , NSW Independent Pricing and Regulatory Commission, December 2011