The Energy Efficiency Commitment 2005-2008 -

overall progress and emerging issues

Charles Hargreaves4 September 2007

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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

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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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