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UK Regulator Investigates Energy Companies that Failed to Achieve Efficiency Targets

ofgem logoThe regulator of the gas and electricity industries in Great Britain – the Office of the Gas and Electricity Markets (Ofgem) – finds that energy companies achieved 99 percent of the government’s energy efficiency targets by the December 2012 deadline, but some energy companies did not fully comply and will be investigated.

Ofgem is launching investigations into British Gas, Drax, GDF Suez/IPM, Intergen, Scottish Power and SSE, for failure to achieve one or more of their energy efficiency targets.

The overall targets were set by the Department of Energy and Climate Change (DECC) under the Community Energy Saving Programme (CESP) and the Carbon Emissions Reduction Target (CERT). The government gave Ofgem the role of administering both schemes.

According to a report published by Ofgem, under CERT over 3.9 million lofts and 2.5 million cavity walls were insulated. Over 150,000 households had at least one energy efficiency measure installed including insulating over 75,000 external solid walls and replacing nearly 43,000 old, inefficient boilers. Consumers have received over six million professionally installed energy efficiency measures, including approximately 700,000 of the most vulnerable households under CERT and CESP schemes.

During the final year of the programs, the energy companies stepped up delivery of the schemes. To ensure as much benefit was delivered to consumers as possible, Ofgem reminded the industry in September 2012 that companies risked facing enforcement action if they failed to meet their energy efficiency targets. Ofgem also stated it would take into account as ‘mitigation’ additional energy saving measures installed after the December 2012 deadline as part of any enforcement process or possible fines. Since January 2013 a number of energy companies have chosen to continue installing energy efficiency measures.

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