Notice of decision to impose a financial penalty following an investigation into compliance by GDF SUEZ/IPM with Article 14(1) of the Electricity and Gas (Community Energy Saving Programme) Order 2009

Opened:
Apr 2013
Decision Proposed:
Dec 2014
Closed:
Mar 2015

The Authority has decided to impose a financial penalty on GDF SUEZ/IPM following an investigation into the company’s compliance with its obligations under Article 14(1) of the Electricity and Gas (Community Energy Saving Programme) Order 2009.

The Community Energy Saving Programme ("CESP") was a policy, set down in legislation, designed to improve domestic energy efficiency standards in the most deprived geographical areas across Great Britain. The relevant legislation was the Electricity and Gas (Community Energy Saving Programme) Order 2009 ("CESP Order"). Under Article 14(1) of the CESP Order, generators and suppliers had to achieve their carbon emissions reduction obligation by promoting qualifying actions to domestic energy users in low income areas.

The Authority found that GDF SUEZ/IPM breached Article 14(1) of the CESP Order having failed to achieve its carbon emissions reduction obligations by promoting qualifying actions to domestic energy users by 31 December 2012. GDF SUEZ/IPM as a whole delivered 38.6% of its reduced obligation and had a shortfall of 177,928 tCO2.

The particular GDF SUEZ/IPM licensees which failed to meet their obligations were Saltend Cogeneration Company Limited, Deeside Power Limited and Rugeley Power Generation Limited.

The Authority noted that GDF SUEZ/IPM undertook mitigation activity by March 2013 to mitigate its carbon saving shortfall in full. GDF SUEZ/IPM also delivered mitigation in excess of the level required to address the harm associated with its breach. The Authority had regard to this in setting the final level of penalty.

A payment of £450,000 (less a nominal £2 penalty on GDF SUEZ/IPM licensees) has been made to Age UK with the aim of pursuing the following objectives:

  • promotion of carbon emissions reduction in domestic homes;
  • the promotion of energy efficiency in domestic homes; or
  • fuel poverty.

A financial penalty of £2 is to be made by 17 April 2015.