Energy Efficiency Commitment - Administration Procedures issue 2
Decision
- Publication date
- Scheme name
- EEC
The EEO Order imposes an obligation upon licensed gas and electricity suppliers, with at least 15,000 domestic consumers, to meet an energy efficiency target and sets the framework for how this obligation is to be achieved.Ofgem is required to determine the energy efficiency targets for each gas or electricity supplier on whom obligations are imposed by the EEO Order. Ofgem will review, and where necessary adjust, each suppliers energy efficiency target each year of the EEC obligation period. Ofgem is also required to determine whether any activity proposed by a supplier qualifies for the purpose of achieving whole or part of their energy efficiency target; and, if so, what improvement in energy efficiency is to be attributed to that activity. Suppliers are required to submit their scheme proposals to Ofgem for accreditation. Due to the specific provisions of the EEO Order, Ofgem can only determine whether activity is a qualifying action, and the overall energy savings attributable to it, at the end of the EEC obligation period. Another important part of Ofgems role is to oversee the trading of qualifying actions and energy efficiency targets between suppliers. The EEO Order requires suppliers to obtain the written agreement of Ofgem for such trades to be recognised for the purposes of the EEO Order. Ofgem will also monitor each suppliers progress against their energy efficiency target through regular reporting requirements and, where necessary, enforce compliance with their obligation under the EEO Order.The Energy Efficiency Commitment Administration Procedures were initially published in December 2001 to provide guidance to suppliers on how they can comply with their obligations under the EEO Order. This second issue of the EEC Administration Procedures supersedes that publication. The main change is the clarification of how suppliers schemes are treated. When a supplier submits its scheme proposals it will be told that, if their proposal conforms with the procedures outlined in this document, that their activity is capable of being qualifying action. When the scheme has been completed as outlined in the proposal the supplier will be told that the activity will be qualifying action provided at least 50% of its overall activity is met within the Priority group. Finally when all a suppliers completion reports have been received, Ofgem will be able to determine whether the suppliers activity is qualifying action. In the Chapter on trading we have now clarified that Ofgem will only agree to trade when the scheme involved has been approved.Finally to increase the consistency of the way suppliers distribute compact fluorescent lamps (CFLs), all CFLs that are distributed free of charge, even those with another measure, will now be limited to four. However, this will not affect the schemes that have already been accredited by Ofgem.These Administration Procedures also now provide guidance on how suppliers can integrate their EEC schemes with other Government programmes. The relevant programmes are Warm Front, Welsh HEES, the Scottish Executive Central Heating Programme, Warm Deal, Community Energy and Clear Skies. Ofgem has liaised with the relevant Government departments to produce this guidance. The Energy Efficiency Commitment Administration Procedures will continue to be a working document and shall be reviewed from time to time during the operation of the EEO Order.