Electricity and gas suppliers will have to meet new energy saving targets for domestic customers

Under the proposed Energy Efficiency Commitment (EEC) for 2002 to 2005, energy providers with customers in England, Scotland and Wales will be required to achieve targets for the promotion of domestic energy efficiency, such as by encouraging customers to use insulation, energy efficient boilers, appliances or light bulbs, and can also include the use of combined heat and power (CHP) systems.

The scheme is designed to contribute to the UK’s Kyoto commitment to cut greenhouse gas emissions, and is predicted to produce a 0.4 million tonnes of carbon (MtC) cut per year by 2005. According to the Department for Environment, Food and Rural Affairs (DEFRA), the proposal will also reduce costs for electricity and gas consumers with energy providers being obligated to focus 50% of their energy saving on lower income households, such as those claiming income support, the disability living allowance, and the working families tax credit. On average, says DEFRA, customers will save around £10 per year by 2005, with those on lower incomes saving around £14 per year.

In March 2000, the Government launched its Energy Efficiency Standards of Performance consultation (see related story), the precursor of this new proposal. In October last year, the Energy Saving Trust, a non-profit company set up by the Government and major energy companies, also launched the Energy Efficiency Recommended logo, designed to identify energy efficient electrical appliances in retail stores (see related story).

Comments on the consultation should be sent by 12 October to: Anthony Adesile, Department for Environment, Food and Rural Affairs, Zone 6/G15, Ashdown House, 123 Victoria Street, London SW1E 6DE; eec@defra.gsi.gov.uk; or by fax to 020 7944 6679.