Notice of decision to impose a financial penalty following an investigation into compliance by Drax with Article 14(1) of the Electricity and Gas (Community Energy Saving Programme) Order 2009
- Decision proposed
The Authority has decided to impose a financial penalty on Drax 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 Drax 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. Drax delivered 37.1% of its obligation and had a significant shortfall of 562,826 tCO2 or 62.9% of its obligation.
Drax will pay a penalty of £5 million. They will also pay £20 million in consumer redress to National Energy Action with the aim of pursuing the following objectives:
- the promotion of energy efficiency in domestic homes;
- the alleviation of fuel poverty;
- the reduction of carbon emissions in domestic homes.
Drax has also separately arranged delivery of energy efficiency measures to the value of £3 million by 31 October 2016.