The Carbon Emissions Reduction Target (CERT) ran between 1 April 2008 and 31 December 2012 and followed the Energy Efficiency Commitment (EEC) 2005-2008. CERT required certain gas and electricity suppliers to achieve targets for reducing carbon emissions within domestic properties.
The Gas and Electricity (Carbon Emissions Reduction) Order 2008 and subsequent amendments (the Order) stipulated the levels of savings required and the way in which these were to be achieved. Under the Order, suppliers had to:
- reduce carbon emissions by 293 million lifetime tonnes CO2
- achieve 40 per cent of these savings in the Priority Group – people over 70 and on certain qualifying benefits
- achieve 73.4 million lifetime tonnes of CO2 via professionally installed insulation measures
- promote 16.2 million tonnes worth of carbon savings to those on certain qualifying benefits such as low income households receiving child tax credits.
The Community Energy Saving Programme (CESP) came into force on 1 September 2009 and the obligation period ran from 1 October 2009 to 31 December 2012. CESP was created as part of the government's Home Energy Saving Programme.
The Department of Energy and Climate Change (DECC) had responsibility for setting the overall CESP target and the policy framework and we were responsible for administering the programme.
DECC set an overall carbon emissions reduction target of 19.25 million tonnes of carbon dioxide. This was to be met through requiring gas and electricity suppliers and electricity generators to deliver energy saving measures to domestic consumers in specific low income areas of Britain. This obligation was placed on all licensed gas and electricity suppliers that had at least 50,000 domestic customers and all licensed electricity generators that had generated on average 10 TWh/yr or more in a specified three year period.
CESP was designed to promote a 'whole house' approach and to treat as many properties as possible in defined geographical areas selected using the Income Domain of the Indices of Multiple Deprivation (IMD) in England, Scotland and Wales.
In England, the lowest 10 per cent of areas ranked in IMD qualified and in Scotland and Wales the lowest 15 per cent of areas qualified. Consequently, CESP contributed to the government's Fuel Poverty Strategy.
EEC and EESoP
The predecessor to CERT was the Energy Efficiency Commitment (EEC) scheme. The first scheme ran from 2002 to 2005 and the second (EEC2) ran from 2005 to 2008. The forerunner of EEC was the Energy Efficiency Standards of Performance (EESoP), which ran from 1994 to 2002. EESoP1, EESoP2 and EESoP3 ran respectively from 1994 to 1998, 1998 to 2000 and 2000 to 2002.
EESoP was jointly developed and managed by us (initially Offer) and the Energy Saving Trust. Over the course of EESoP, the programme developed. It evolved from having targets set for electricity suppliers only to extending the targets so that they were also set for gas suppliers.
EEC, while differing in several important ways, built on the success and basic methodology of EESoP. The targets for EEC1 were equivalent to around a one per cent reduction in carbon emissions from domestic sources and in EEC2, the target more than doubled (130TWh).
Both EEC and EESoP had an emphasis on disadvantaged customers. The majority of measures in EESoP1 and around two thirds of supplier expenditure in EESoP2 and EESoP3 focused on disadvantaged customers. Similarly, EEC2 had a requirement for at least 50 per cent of the target to be met in relation to Priority Group consumers, defined as those in receipt of certain income-related benefits and tax credits.