Energy Efficiency 

Carbon Emission Reduction Target (CERT)

The Carbon Emissions Reduction Target (CERT) 2008 – 2012 follows on from the Energy Efficiency Commitment (EEC) 2005 – 2008.  Revised in 2009 and further revised in 2010, the CERT requires gas and electricity suppliers to achieve targets for a reduction in carbon emissions generated by the domestic sector^1. 
 

The government sets out the overall carbon emissions reduction target to be collectively achieved by suppliers between 1 April 2008 and 31 December 2012. The target is 293 million tonnes of carbon dioxide (lifetime).
 

The Order requires licensed gas and electricity suppliers, that have at least 250,000 domestic customers (either individually or as part of a group of companies), to meet a carbon obligation.  This is set by Ofgem, who apportion the overall target in relation to each obligated supplier’s domestic customer numbers. 
 

Modifications made by The Electricity and Gas (Carbon Emissions Reduction) (Amendment) 2010 include:

• Extended CERT until 31 December 2012
• Increase in target to 293 million lifetime tonnes CO₂
• New Insulation Obligation of 73.4 million lifetime tonnes CO₂
• Creation of Super Priority Group obligation at 16.2 million tonnes of carbon dioxide
• Removing halogens and compact fluorescent lamps from the scheme from 1 April 2011
• Free, non professionally-installed measures must be requested in writing
• After 31 March 2011, microgen can only be promoted in the Super Priority Group
• Reporting by fuel type where solid wall insulation is installed
• Changed the market transformation action baseline from EEC1 to EEC2 from 1 April 2011
   

Modifications made by the The Electricity and Gas (Carbon Emissions Reduction) (Amendment) 2009 include:

• Increasing the overall target by 20 per cent
• Inclusion of real time displays (RTDs) and home energy advice packages (HEAs) as qualifying actions, each with a score specified in the legislation
• Increase of the innovation ring fence to 10 per cent of a supplier‘s obligation (or 12 per cent where at least two per cent is achieved via microgeneration)
• Provision of an incentive for the promotion of DIY loft insulation and professional loft insulation top up, where the installation takes place in the period between the Prime Minister‘s announcement of 11 September 2008 and 31 July 2009, and
• Restrictions to the delivery of compact fluorescent lamp (CFL) schemes

Suppliers meet their targets by setting up schemes to deliver reductions in carbon emissions, e.g. delivering loft insulation to low income households or subsidising the cost of cavity wall insulation.
 

Ofgem have procedures in place to assess suppliers’ schemes, and to oversee progress and compliance.  Ofgem must be satisfied that the measures delivered through a supplier’s scheme will result in an improvement in energy efficiency and therefore a reduction in carbon emissions. 
 

Using less energy was highlighted in the government’s Energy White Paper 2007 as being a cost effective way of achieving cuts in carbon emissions.  Reducing energy consumption can also improve productivity, reduce household energy bills, and contribute to improved security of energy supply.
 

The government has committed to the continuous delivery of carbon savings from the domestic sector using some form of supplier obligation until at least 2020. The CERT is part of this and will contribute to the government’s overall Climate Change Programme by cutting carbon emissions in the domestic sector.
 

Under the CERT activity equivalent to at least 40 per cent of the target must be targeted at certain low-income domestic consumers or those who are over 70 years old and on certain credits and benefits called the Priority Group.  In addition 16.2 million lifetime tonnes of carbon dioxide must be targeted at the Super Priority Group which includes people claiming specific credits and benefits income-related Employment and Support Allowance, income-based Job Seeker's allowance, Income Support and State Pension Creditor or who have parental responsibility for a child under 5 years of age who lives with them; hence the programme also contributes to the government’s Fuel Poverty Strategy.
 

1. The Electricity and Gas (Carbon Emissions Reduction) Order 2008 and its amending orders The Electricity and Gas (Carbon Emissions Reduction) (Amendment) Order 2009 and The Electricity and Gas (Carbon Emissions Reduction) (Amendment) Order 2010 (the Order) provides the statutory basis for the CERT.
 

Below are all the documents relating to the Energy Efficiency Commitment.