CERT and CESP

Domestic energy efficiency is a key part of UK government policy to tackle climate change and reduce fuel poverty. One of the main programmes through which this happens is CERT.

How CERT works

The government’s Carbon Emissions Reduction Target (CERT) replaced the Energy Efficiency Commitment (EEC). CERT sets energy-savings targets for each energy supplier based on the number of customers it has.

In September 2008, the government increased the CERT target for all energy companies. Our target is to save 25.3 million tonnes of CO₂ emissions in domestic homes over the lifetime of those measures. All these projects will need to be deployed by March 2011.

To do that we will spend around £400 million over the next three years on helping customers reduce the amount of energy they use through free or subsidised energy efficiency measures. We will deliver 40% of these CO₂ savings within priority groups: those over 70 or on income or disability-related benefits.

We’re also currently in talks with the government around further increases to this target – potentially by up to 20% – which may well include greater levels of advice and information for customers on energy efficiency through services like real-time displays and face-to-face advice in the home.

How CESP works

We’re also working with the government on the development of the Community Energy Savings Programme (CESP). This proposed programme, which is similar to but smaller than CERT, focuses on community-based energy efficiency solutions.

The programme will target households across specific areas of the UK, improving energy-efficiency standards and permanently reducing fuel bills. It will promote a ‘whole-house’ approach, and will work through community-based partnerships (involving local authorities), suppliers and generators.

These partnerships will allow CESP to be tailored for individual areas, and integrated with existing initiatives.

CESP will be funded by a new and additional obligation on energy suppliers and electricity generators. By focusing on deprived areas it will also help to get more families out of fuel poverty.

CERT and CESP – our approach

Hitting our CERT and CESP targets is a huge undertaking. As an example of the scale of what we’re doing, every hour of every working day npower starts more than 100 insulation projects.

Our strategy is to go beyond compliance. This means leveraging the energy services expertise we already have across our business – from using our smart metering experience to using our energy efficiency helpline as a referral mechanism.

One of our key challenges is identifying consumers that we can help. Research tells us consumers can be suspicious of a retail energy company encouraging its customers to use less of its product. As a result, a key part of our strategy is to partner with local authorities and community groups in specific geographic areas. This means we can deliver a full range of energy efficiency and other benefits in areas where a high percentage of households are deemed vulnerable or in fuel poverty.

Progress in 2008

Under CERT, and with the help of our appointed partners, we installed cavity wall insulation in 65,014 homes and loft installation in 97,009 homes last year. We also distributed 3,042,676 free energy-saving light bulbs and completed 2,130 fuel switches.

In addition, our specially trained energy efficiency advisers offered free impartial advice on ways to save energy and cut energy bills through our Freephone helpline. This helpline answered over 53,510 calls. And, our energy services representatives visited 2,585 customers’ homes and recommended ways of saving energy and money.

Looking forward

As part of our commitment to sharing our energy-management expertise, we’re planning to increase the energy efficiency advice we give customers on the phone and face-to-face in 2009. We’ll also be introducing a new DIY loft-insulation product, which means people will be able to order high-quality insulation from us and have it delivered straight to their doors at a very affordable price.