Our response to Ofgem energy efficiency announcement

British Gas response to Ofgem announcement on energy efficiency targets

British Gas delivered more measures than all other suppliers, spending £1.1bn on the schemes:

  • 3 million homes insulated and 65,000 new boilers installed over the last five years
  • British Gas met 100% of its CERT Obligation by the end of Q1 2013
  • The Company remains confident that under its CESP obligations, the right treatments will be delivered most cost-effectively to the right customers

British Gas is leading the delivery of warmer, more energy efficient homes in the most cost effective way possible. Through the CERT and CESP schemes we have invested £1.1bn in delivering over 20 million energy efficiency measures to improve homes and reduce energy bills.

It is encouraging that Ofgem's review of the CERT and CESP schemes shows the benefits that customers have received, albeit that some treatments were necessarily installed after the cold winter. In total, British Gas has delivered more energy efficiency improvements to Britain's homes than any other supplier.

CERT

British Gas met the total targeted carbon savings required under the CERT scheme early in 2013 - shortly after the original deadline. In doing so, we delivered more benefits to vulnerable customers than required under the obligation.

CESP

Under the CESP Scheme we focussed on improving homes in some 318 low-income communities with a high proportion of hard to treat housing, including measures such as solid wall insulation.

However the particularly adverse weather conditions throughout winter prevented us from carrying out the improvements in the safest, most cost effective way. We expect to complete the remaining improvements by Summer 2013.

In the new Energy Company Obligation (ECO) British Gas has made an encouraging start, signing up around £100m of energy saving contracts across the country but remains vigilant that programmes represent good value for money for bill payers as costs of carbon abatement in the brokerage market are currently over £100/tonne.

British Gas this week became the first energy supplier to help a customer access Green Deal Finance to help improve their home.

Notes

1. Delivery of CERT

Obligation

%

Total Obligation

98.9

Priority Group

109.4

Super Priority Group

105

Insulation Obligation

95.5

2. Delivery of CESP

Obligation

Obligation
MtCO2

Delivered
(Dec 31)
MtCO2

%

Banked
(Jan31)
MtCO2

%

Contracts in place to deliver
MtCO2

%

CESP Obligation

5.67

4.14

73.5%

3.54

62.4%

5.67

100%
  • British Gas completed 82 schemes in 318 low income areas, delivering 62.4% of its obligations.
  • British Gas installed 62,237 measures in 28,773 dwellings. This is the equivalent of 2.16 measures per property, the highest rate of all companies.
  • British Gas, like other vertically integrated energy companies, concentrated mainly on insulation and heating measures. Of the measures British Gas installed, 44% were heating measures and 42% were insulation measures. It installed more district heating measures than any other energy company.
  • We expect to complete delivery of projects in August 2013.