UK and Italy's Experiences with Energy Efficiency Resource Standards/White Certificates
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The document discusses the UK Supplier Obligation policy for improving home energy efficiency. It describes how the Carbon Emissions Reduction Target (CERT) scheme works, requiring energy suppliers to meet targets by subsidizing insulation and other energy efficiency measures. CERT has helped insulate over 3 million households since 2008 and is estimated to save £22 billion by reducing carbon emissions. A new Energy Company Obligation (ECO) will replace CERT after 2012, building on its successes and integrating with the new Green Deal financing program to focus on hard to treat homes and vulnerable consumers.
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UK and Italy's Experiences with Energy Efficiency Resource Standards/White Certificates
- 1. The UK Supplier Obliga1on Tom Bas(n Department of Energy and Climate Change
- 2. Why the suppliers? 2 • Energy suppliers have direct customer relationship with every household. • Liberalised market – competition keeps costs down. • Economies of scale • Access to large upfront capital for procurement at scale
- 3. How CERT works: the main players 3 UK Government The administrator The suppliers The installers
- 4. How CERT works: supplier delivery Suppliers design schemes to meet their targets Marketing and Subsidies for measures Quarterly reporting (3.5 million homes) Suppliers have multiple delivery routes Contracts with installers, Retailers, Local Authorities etc Verifica(on Installation Auditing (5%) Potential 10% Fine 50% off!!
- 5. How CERT works: Costs • Scheme runs from April 2008 to December 2012. • Estimated £5 billion will be invested by suppliers • Suppliers may absorb some of these costs, but assumed that at least some costs passed onto energy bills. • Estimated £45 Euros / year per household on bills
- 6. Equity and Fuel Poverty 6 Non-‐priority group 60% SPG 15% Non SPG 25% Priority Group 40% Non-‐priority, Priority and Super Priority Groups
- 7. What has been achieved? EEC 2002 - 2008: • 5 million households received insulation CERT April 2008 – Sept 2010: • 170 MtCO2 achieved • >3m households received insulation • 300 million CFLs distributed
- 8. CERT delivery by end 2012 8 • Almost 300 MtCO2 (lifetime) by Dec 2012 • Annual savings of 8.3MtCO2 by 2013. • £22 billion overall societal benefit ....but this still leaves: • ~5 million hard to treat wall cavities • ~7 million solid walled homes
- 9. 9 • A regulatory framework enabling companies to offer businesses and householders: § accredited advice and recommenda1ons § home energy efficiency improvements at no up-‐front cost § reassurance that installa1on work is of a high standard § the ability to pay via energy bills over the long term, making use of the money saved on fuel (bound by the Golden Rule) § Not a conven1onal loan and not secured against the property § Consumer protec(on -‐ certain financial terms will be regulated • Range of financial ins1tu1ons & High Street Banks in discussions Life aQer CERT Green Deal
- 10. Life AQer CERT Energy Company Obliga(on 10 • ECO is an obligation on the energy suppliers to support household energy efficiency • Builds on strengths of existing CERT scheme. • Designed to fit with the Green Deal landscape. • Will commence at end of 2012.
- 11. The role of the ECO • There will be households for whom Green Deal finance is not ideally suited. • ECO to integrate seamlessly with the Green Deal, with a focus on: o hard to treat proper1es; and o vulnerable and poor households.