Statutory Instrument Made Date: 30-07-2010
Introduction
A consultation was held in early 2010 on proposals to extend the Carbon Emissions Reduction Target (CERT) from March 2011 to December 2012 by further amending the Electricity and Gas (Carbon Emissions Reduction) Order 2008 (S.I. 2008/188), as amended by the Electricity and Gas (Carbon Emissions Reduction) (Amendment) Order 2009 (S.I. 2009/1904).
A restructured CERT to December 2012 was announced on 30 June and delivered into force on 30 July. It will start a significant increase in home energy insulation, paving the way for the Government’s new Green Deal. Specifically, the, Government has acted to:
- Extend CERT to December 2012, increasing the target by 108 Million lifetime tonnes of CO2 and setting a new ambitious target of 293 MtCO2
- Require obligated suppliers to meet 68% of the target through professionally installed insulation products
- Remove halogens and compact fluorescent lamps from the scheme
- Restrict microgeneration products to the most vulnerable groups only
- Encourage suppliers to promote solid wall insulation in off-gas grid properties
- Require written consumer request on all products promoted outside retail channels and to increase the innovation baseline to ensure that only the most innovative products receive incentives
- Require obligated suppliers to meet 15% of their total target within an ongoing 40% Priority Group target in a subset of low income households (a Super Priority Group) considered to be at high risk to fuel poverty.
A further consultation will be conducted in autumn 2010 on whether low carbon gadgets like eco-kettles, shower regulators and high efficiency appliances, which are not professionally installed, should remain eligible to be supported under CERT.
Background
CERT, which commenced in April 2008, is a household sector energy and carbon saving scheme, placing an obligation on energy suppliers to meet ambitious household carbon saving targets. Suppliers meet their targets by promoting (for example, through subsidy) the take-up of energy saving measures, predominantly loft insulation, cavity wall insulation and historically low energy lighting.
The Government announced in the Queen’s Speech on 25 May 2010 that it is to introduce legislation for the “Green Deal” – a new and ambitious approach to home energy efficiency. The Green Deal will enable householders to install energy efficiency measures with no upfront payment, repaying the cost of the work over time through savings on their energy bills. The Green Deal will lead to a radical overhaul of our existing homes to save energy, carbon and costs.