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The Energy Efficiency Commitment

The Energy Efficiency Commitment. Kate Smith, Deputy Head of Energy Efficiency, Ofgem katharine.smith@ofgem.gov.uk National Home Energy Conference May 2005. Summary. Outcome of EEC 1 The EEC 2 target A comparison of EEC 1 and EEC 2 A checklist for SHPs Opportunities Discussion.

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The Energy Efficiency Commitment

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  1. The Energy Efficiency Commitment Kate Smith, Deputy Head of Energy Efficiency, Ofgem katharine.smith@ofgem.gov.uk National Home Energy Conference May 2005

  2. Summary • Outcome of EEC 1 • The EEC 2 target • A comparison of EEC 1 and EEC 2 • A checklist for SHPs • Opportunities • Discussion

  3. Key features • Energy saving target • Domestic consumers • Priority group • Flexibility for suppliers • ‘Additional’ energy savings

  4. Ofgem • Sets suppliers’ targets • Approve schemes • Monitor activity • Per scheme • Per supplier • Report to the Secretary of State • Enforce compliance where necessary

  5. Energy savings achieved Energy savings achieved by measure type for Priority and non Priority consumers

  6. EEC 1 62 TWh 0.4 MtC a year £3.60/customer/fuel/year £500m 50% Priority Group 2002 - 2005 EEC 2 130 TWh 0.7 MtC a year £9 /customer/fuel/year £1200m 50% Priority Group 2005 - 2008 A comparison

  7. Carbon savings from households Projected carbon savings from the household sector (MtC pa) to 2010

  8. EEC 2 – what’s new? More of the same… • Creating improvements in energy efficiency • Domestic consumers • Priority Group • Incentives for energy services And, new… • Incentives for innovative measures

  9. Insulation Cavity wall and loft 2.8m DIY loft 0.46m Tank Jackets / draught proofing 0.77m Window glazing 4.5m2 Heating Boilers 1.2m Fuel switching 0.06m Heating controls 0.54m Lighting CFLs 42.3m Appliances Cold and wet 2.15m Set top boxes 0.5m Defra’s Illustrative mix

  10. EEC 1 quarterly savings compared to EEC 2 EEC 1 achieved energy savings comparable to the EEC 2 energy savings and EEC 2 indicative quarterly savings

  11. Energy savings by measure type The percentage energy savings achieved by measure type from EEC 1 and the indicative percentage savings for EEC 2

  12. What SHPs need to know • Domestic consumers can benefit • Schemes must be ‘additional’ to BaU • No retrospective funding • Priority Group definition • Monitoring • Properties • Quality • Customer satisfaction • Free CFLs – limited to four per household • SHP declaration must be signed

  13. SHP Declarations • Confirms • The scheme would not have gone ahead without the supplier’s funding, • The supplier’s funding has not replaced any funds for such work, from any source, • There has been no retrospective funding of measures, and • The proportion of recipients in the Priority Group

  14. Opportunities for SHPs • Insulation the most cost effective measure • ….but a mix of measures is desirable • Social housing partnerships key • …with increasing focus on private households • Priority Group • Incentive for innovative measures

  15. Opportunities, continued! • Eight suppliers • Three years • £1 billion pounds • Contact details at www.ofgem.gov.uk • ‘EEC 3’ 2008 - 2011 • Defra to review the EEC in 2007

  16. Points for discussion • EEC 1 • Examples of successful partnerships • What have been your experiences over the last three years? • How have you benefited? • What lessons can be learnt • EEC 2 • What do you want to achieve over the next three years • Potential post 2008?

  17. Promoting choice and value for all gas and electricity customers www.ofgem.gov.uk

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