The Carbon Emissions Reduction Target (CERT) (2008 – 2011) is the third three-year phase of a domestic energy supplier obligation and obligates all domestic energy suppliers with a customer base in excess of 50,000 customers to make savings in the amount of CO2 emitted by householders. CERT is significantly more ambitious and doubled the level of activity seen under the previous Energy Efficiency Commitment (EEC) 2005 - 2008. It also sees a shift in emphasis, with the target set in terms of carbon savings rather than terawatt hours.
When CERT began in April 2008, energy suppliers were required to deliver measures that will provide overall lifetime carbon dioxide savings of 154 MtCO2 – equivalent to the emissions from 700,000 homes each year which we estimate will lead to energy supplier investment of around some £2.8bn. CERT allows suppliers to meet up to 5 per cent of their obligation through a ‘flexibility mechanism’, which aims to target hard-to-treat homes i.e. those off-grid or solid walled homes, in the Priority Group.
Supporting documents relating to CERT that were formerly housed on the Defra website have now been deleted. Copies can be obtained upon application by email from: paul.egerton@decc.gsi.gov.uk.
Consultation on increasing the CERT ambition
As part of the Prime Minister’s £1 billion Home Energy Saving Programme, the consultation on proposed amendments to the Carbon Emissions Reduction Target 2008-2011 was launched in the early part of 2009. As a result of the consultation, the CERT target was further exceptionally raised by an additional 20 per cent, increasing the scheme’s lifetime carbon savings to 185MtCO2 (some 31 MtCO2 more than under the original CERT target) thereby making a significant contribution to the Government's environmental and social ambitions. Suppliers must now focus 40 per cent of their activity on a ‘Priority Group’ of vulnerable and low-income households, including those in receipt of eligible benefits and pensioners over the age of 70. By increasing the energy efficiency of GB households, CERT will not only help households from falling into fuel poverty but is also expected to help alleviate fuel poverty.
Extending CERT to 2012
In the UK Low Carbon Transition Plan published in July 2009, the Government committed to increasing the focus of the CERT to ensure that it especially targeted the most vulnerable and, increase the quantity and speed of insulation installation.
The Extending the Carbon Emissions Reduction Target consultation published 21st December raises key proposals for an ongoing CERT to December 2012 with new higher target of 293 million tonnes of lifetime CO2 savings (an additional 108 MtCO2 over the existing target); for the provision of an insulation minimum and for the removal of compact fluorescent lights as eligible measures, so as to drive insulation delivery at scale and ensure we meet our target to insulate 6 million homes by December 2011. It also proposes a new Super Priority Group obligation to ensure that the most vulnerable householders who are least able to afford energy saving measures are offered assistance. The consultation is open to 14th March 2010.
Suppliers’ progress
Ofgem reports supplier progress towards their CERT target on a quarterly basis. See the Ofgem: CERT update web page for full details.
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