EEC 2 The Energy Efficiency Commitment 2005 - 2008
The Energy Efficiency Commitment 2005 - 2008 (EEC 2) forms part of the Government’s Climate Change Programme and Fuel Poverty Strategy. EEC 2 requires obligated electricity and gas suppliers to achieve targets for the improvement of energy efficiency in domestic properties in Great Britain. The overall target of 130 TWh was set by Defra.
Each licensed energy supplier group with at least 50,000 gas or electricity domestic consumers is subject to an individual target. This is set by Ofgem, who apportion the overall target in relation to each supplier’s domestic consumer numbers.
At least half of the target must be achieved within the Priority Group (households receiving certain income related benefits and tax credits) to ensure that this group receive a significant share of the benefits of EEC 2.
Suppliers meet their targets by setting up schemes to deliver improvements in energy efficiency, eg delivering free CFLs (Compact Flourescent Lamps) to low income households or subsidising the cost of cavity wall insulation.
Ofgem have procedures to assess suppliers’ schemes, and oversee progress and compliance. Ofgem will approve a scheme if they are satisfied that it will lead to an improvement in energy efficiency.
The statutory basis for EEC 2 is The Electricity and Gas (Energy Efficiency Obligations) Order 2004; No. 3392. This followed the Government’s Energy White Paper in April 2003, which announced the intention to double the level of activity of the former programme, the Energy Efficiency Commitment 2002-2005 (EEC 1). The obligated suppliers were allowed to carry over energy efficiency activity from EEC 1 to the current programme.
The Energy White Paper stated that the cheapest, cleanest, and safest way of addressing the Government’s energy policy objectives is to use less energy, in which EEC 2 plays a major role. EEC 2 is one of a number of initiatives, for which further information may be found via the external links on this page.
Below are all the documents relating to the Energy Efficiency Commitment.
