25 May 2004 - Consultation Launched on Next Phase of Energy Efficiency Commitment
The Government's proposals for the next stage of the Energy Efficiency Commitment (EEC) were launched in a consultation document recently.
Under the current EEC, electricity and gas suppliers are required to encourage and assist their domestic consumers to make energy savings - through measures such as cavity wall and loft insulation and energy efficient boilers, appliances and light bulbs. At least 50% of this target must be met by helping low-income consumers, specifically those in receipt of certain income related and disability benefits.
The Government proposes that the next phase of the EEC - to run from 1st April 2005 for six years - should be about twice as big, which should increase the help to electricity and gas consumers to enable them to save energy, therefore reducing their fuel bills and being able to enjoy greater comfort by living in better-heated homes.
The EEC is key to the Government's carbon abatement objectives in the household sector and also contributes to the alleviation of fuel poverty.
The Government's proposals for the next phase of the EEC are set out in the consultation paper. The key proposals are:
-
Duration of the EEC post 2005 - a firm commitment to the EEC mechanism until 2011, with targets set in two three-year phases; 2005-2008 and 2008-2011
-
The level of the target - about 130TWh in the period 2005-2008 with the aim of delivering carbon savings of about 0.7MtC
-
The potential cost to consumers - estimated to be about £5.00 per customer per fuel per annum, over and above the current costs, equivalent to about 1.5% on current fuel prices, over the three years 2005-2008
-
That EEC post 2005 retains a requirement for 50% of energy savings to be delivered from a priority group aimed at low-income consumers, which will also contribute to the alleviation of fuel poverty.
Lord Whitty, Minister for Sustainable Energy, commented:
"The EEC is an excellent example of sustainable development in action, combining environmental, economic and social objectives. The current EEC has proved to be an effective and practical way to encourage householders to embrace energy efficiency and enhances the proactive approach already taken by energy suppliers to engage customers in the issue of climate change. We are proposing that the next phase of the EEC be at broadly twice its current level, which will contribute significantly to our climate change targets. An EEC of this scale will be challenging, but we believe it is both necessary and achievable."
The consultation will close on 13th August. More information can be found here.
