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The Energy Efficiency Commitment 2005-2008 -
overall progress and emerging issues
Charles Hargreaves4 September 2007
2
Presentation outline
• The EEC2 target• Supplier progress and activity• Targeting the Priority Group• Key issues moving forward
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The Energy Efficiency Commitment 2005-08
• Suppliers were set an overall target of 130 TWh• At least 50% of which has to be met in the low income Priority
Group• Suppliers carried forward 35 TWh of energy savings from EEC1
into EEC2, just over half of which were in the Priority Group
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Supplier progress
• Suppliers had made good progress towards meeting their targets by the end of the second year of the EEC2
• Two suppliers had achieved enough energy savings to have complied with their obligations
• By the end of the second year year, suppliers had met nearly 95% of the overall target
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Supplier progress
Percentage of each supplier's target
0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200%
Telecom P lus
Scottish P ower
Scottish and Southern
P owergen
Opus Energy
npower
EDF Energy
British Gas
P roposed
Carryover from EEC1
EEC2 First Year
EEC2 Second Year
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Activity to date
• Energy savings achieved to date have been dominated by the delivery of insulation measures
• However, large numbers of other measures have been promoted, including nearly 45 million low energy lamps
• Some suppliers have been innovative and have brought new products into the EEC
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CFL delivery
0
5000000
10000000
15000000
20000000
25000000
Retail non- retail
PG
nPG
8
Activity to the end of the second year of EEC2
Insulation82%
Lighting9%
Heating and CHP6%
Appliances3%
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Activity to the end of the second year,including carryover
Insulation66%
Carryover21%
Lighting7%
Heating and CHP4%
Appliances2%
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Meeting the Priority Group target
• Suppliers are on track to meet at least half of their energy saving targets in the Priority Group
• However, in EEC2 so far, more of the activity has been targeted on the non-Priority Group
• Priority Group activity has been heavily dominated by the delivery of insulation measures
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Energy savings achieved by consumer type
0 10 20 30 40 50 60 70 80
Priority measures
non - Priority measures
TWh
Insulation
Heating andCHP
Appliances
Lighting
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Innovative action
• Suppliers are promoting a range of innovative products• These include:
– Heating measures such as ground source pumps and small scale CHP
– Consumer electronics such as integrated digital appliances– Very efficient cold appliances
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Progress towards meeting thePriority Group target
0
10
20
30
40
50
60
70
80
90
Carry
ove
r Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9Q10 Q11
Targ
et
TWh
Carry over
Target minus carry over
Progress to date
PG trend
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Progress towards meeting thenon-Priority Group target
0
10
20
30
40
50
60
70
80
90
Carry
ove
r Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9Q10 Q11
Targ
et
Carry over
Target minus carry over
Progress to date
non PG trend
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Progress towards meeting the overall target
0
20
40
60
80
100
120
140
160
180
EECcarryover
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Target
TW
h
EEC Carry Over PG Achieved PG EEC Carry Over nPG Achieved nPG
PG Target non-PG target PG trend Total trend
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Key points
• Suppliers have made good progress towards meeting their targets including meeting at least 50% in the Priority Group
• At the end of the ninth quarter of EEC2, of the 130TWh target only 5 TWh is remaining
• Given current trends it seems all suppliers will have energy savings to carry forward to CERT
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