OpenLegislation

The Electricity and Gas (Carbon Emissions Reduction) Order 2008

S.I. 2008/188 · Made 30 January 2008 · Extends to England, Wales and Scotland

Up to date with all changes known to legislation.gov.uk, revised to 1 December 2022.

Electricity

Gas

Made 30th January 2008

Coming into force in accordance with Article 1

The Secretary of State makes this Order in exercise of the powers conferred by section 33BC of the Gas Act 1986f1, section 41A of the Electricity Act 1989f2 and section 103 of the Utilities Act 2000f3.

The Secretary of State has consulted the Gas and Electricity Markets Authority, the Gas and Electricity Consumer Council, electricity distributors, electricity suppliers, gas transporters, gas suppliers and such other persons as the Secretary of State considers appropriate.

A draft of this instrument has been approved by a resolution of each House of Parliament pursuant to section 33BC(12) of the Gas Act 1986, section 41A(12) of the Electricity Act 1989 and section 103(5) of the Utilities Act 2000.

Annotations to the whole text

Footnotes

f1

1986 c.44. Section 33BC was inserted (as section 33BB) by section 10(1), Schedule 3, paragraph 36 of the Gas Act 1995 (c.45). Section 33BB was substituted for (and renumbered as) section 33BC by section 99 of the Utilities Act 2000. This section was also amended by sections 15 and 17 of the Climate Change and Sustainable Energy Act 2006 (c.19).

f2

1989 c.29. Section 41A was substituted for section 41 by section 70 of the Utilities Act 2000 (c.27) and amended by sections 16 and 17 of the Climate Change and Sustainable Energy Act 2006.

f3

2000 c.27.

Contents

  1. Part 1: Introduction
  2. 1Citation and commencement
  3. 2Interpretation
  4. Part 2: Overall carbon emissions reduction target and carbon emissions reduction obligations
  5. 3Overall carbon emissions reduction target
  6. 4Definition of supplier
  7. 5Notification by suppliers
  8. 6Determining carbon emissions reduction obligations and insulation obligations
  9. 7Matters to be considered by the Authority
  10. 8Review of obligations by the Authority
  11. Part 3: Qualifying actions, notifications and approvals
  12. 9Achievement of carbon emissions reduction obligations
  13. 10Purposes for which a qualifying action must be promoted
  14. 11Notifications
  15. 12Approval of actions by the Authority
  16. Part 4: Priority group obligations
  17. 13Priority group obligations
  18. 13ASuper priority group obligation
  19. 14Priority group flexibility action
  20. Part 5: Estimates, reporting and monitoring
  21. 15Estimated reduction in carbon emissions
  22. 16Reporting and monitoring
  23. Part 6: Excess actions, transfers, determination and reporting
  24. 17Credit of excess actions
  25. 18Transfers
  26. 19Notification of actions and determination of reductions in carbon emissions
  27. 20Carbon emissions reduction for priority group flexibility action
  28. 21Carbon emissions reduction for demonstration action
  29. 22Final determination and reporting
  30. Part 7: Enforcement
  31. 23Enforcement
  32. Signature
  33. Schedule A1: HOME ENERGY ADVICE PACKAGES
  34. 1Paragraph 1
  35. 2Paragraph 2
  36. 3Paragraph 3
  37. 4Paragraph 4
  38. 5Paragraph 5
  39. Schedule 1: MEANING OF HOUSEHOLDER
  40. 1Paragraph 1
  41. 2Paragraph 2
  42. Schedule 2: BENEFITS AND CREDITS
  43. 1Paragraph 1
  44. 2Paragraph 2
  45. 3Paragraph 3
  46. Schedule 3CARBON CO-EFFICIENT VALUES
  47. Explanatory note

1Citation and commencementI1

This Order may be cited as the Electricity and Gas (Carbon Emissions Reduction) Order 2008 and comes into force on the day after the day on which this Order is made.

2InterpretationI1

(1)

In this Order—

  • “the 2001 Order” means the Electricity and Gas (Energy Efficiency Obligations) Order 2001f1;

  • “the 2004 Order” means the Electricity and Gas (Energy Efficiency Obligations) Order 2004f2;

  • “carbon emissions reduction obligation” means the reduction in carbon emissions a supplier must achieve in the obligation period;

  • “cogeneration” means the simultaneous generation in one process of thermal energy and—

    1. (a)

      electrical energy;

    2. (b)

      mechanical energy; or

    3. (c)

      both electrical and mechanical energyf3;

  • F1...

  • “domestic customer” means an owner or occupier of domestic premises in Great Britain who is supplied with electricity or gas at those premises wholly or mainly for domestic purposes;

  • “domestic energy user” means a person who uses energy in domestic premises in Great Britain wholly or mainly for domestic purposes;

  • “energy” means energy from coal, electricity, gas, geothermal sources, liquid petroleum gas, oil, solar power, water, wind or wood;

  • F2“energy assessor” means a person with any of the following qualifications—

    1. (a)

      City and Guilds (6176) in Energy Awareness;

    2. (b)

      Level 3 of the National Vocational Qualification 6049-03 (Provide Energy Efficiency Services);

    3. (c)

      a qualification based on units one to five of the National Occupational Standards (NOS) for Home and Community Energy Advisers which qualification is awarded by a body which has been approved and quality assured by the Office of the Qualifications and Examinations Regulator; or

    4. (d)

      an equivalent qualification that is recognised by a member State of the European Union, an EEA State or Turkey;

  • “group of companies” means—

    1. (a)

      a holding company; and

    2. (b)

      the wholly-owned subsidiaries of that holding company;

  • “holding company” has the same meaning as in section 736 of the Companies Act 1985f4;

  • “home energy advice package” has the meaning given in Schedule A1;

  • “householder” has the meaning given by Schedule 1;

  • F3“insulation obligation” means the amount of a supplier’s carbon emissions reduction obligation which is to be achieved by the promotion of measures in accordance with article 9(1A);

  • “lifetime tonnes of carbon dioxide” means the amount of carbon dioxide that is expected to be saved over the lifetime of the measures to be promoted under this Order;

  • “loft insulation plus” means—

    1. (a)

      the provision to a domestic energy user of loft insulation which adds to existing loft insulation which is at least 60mm in depth and where that additional insulation is installed by a person with appropriate experience or qualifications; or

    2. (b)

      the promotion of loft insulation through a retail outlet,

    where the provision or promotion, as applicable, takes place between 11th September 2008 and 31st July 2009;

  • ...

  • “micro-cogeneration unit” means a cogeneration unit with a maximum capacity below 50 kWe;

  • “new supplier” has the meaning given by article 4(5);

  • “notification” means notification in writing and includes notification by electronic mail or facsimile;

  • “obligation period” has the meaning given by article 6(3) or 6(4);

  • “overall carbon emissions reduction target” means the target for the promotion of a reduction in carbon emissions stated in article 3(1) and referred to in section 103 of the Utilities Act 2000;

  • “overall insulation target” has the meaning given by article 3(1)(a);

  • “overall super priority group target” has the meaning given by article 3(1)(b);

  • “priority group” means the group of domestic energy users where each member—

    1. (a)

      is in receipt of at least one of the benefits described in paragraph 2 of Schedule 2;

    2. (b)

      is in receipt of at least one of the credits described in paragraph 3 of Schedule 2 and has a relevant income of F4£16,190 or less (where “relevant income” has the same meaning as in Part 1 of the Tax Credits Act 2002f5); or

    3. (c)

      is at least 70 years old;

  • “professionally installed” means installed by a person, other than the householder, who has appropriate experience or qualifications;

  • “qualifying component” means—

    1. (a)

      child tax credit which includes a disability or severe disability element;

    2. (b)

      a disabled child premium;

    3. (c)

      a disability premium, enhanced disability premium or severe disability premium;

    4. (d)

      a pensioner premium, higher pensioner premium or enhanced pensioner premium;

  • “real-time display” means a device which, together with a transmitter used in connection with it, provides information relating to—

    1. (a)

      a domestic energy user’s electricity consumption; and

    2. (b)

      the cost of that consumption,

    and does so at the time the consumption occurs;

  • “short-life battery” means a battery which is not expected to power—

    1. (a)

      a real-time display; or

    2. (b)

      a transmitter used in connection with such a display,

    for more than one year under normal conditions of use;

  • “subsidiary” has the meaning given by section 736 of the Companies Act 1985;

  • “super priority group” means the group of domestic energy users in the priority group where each member is in receipt of—

    1. (a)

      child tax credit and has a relevant income below £16,190 (where “relevant income” has the same meaning as in Part 1 of the Tax Credits Act 2002);

    2. (b)

      income-related employment and support allowance, which must include a work-related activity or support component, and—

      1. (i)

        has parental responsibility for a child under the age of five who ordinarily resides with that member; or

      2. (ii)

        is in receipt of a qualifying component;

    3. (c)

      income-based job seeker’s allowance and—

      1. (i)

        has parental responsibility for a child under the age of five who ordinarily resides with that member; or

      2. (ii)

        is in receipt of a qualifying component;

    4. (d)

      income support and—

      1. (i)

        has parental responsibility for a child under the age of five who ordinarily resides with that member; or

      2. (ii)

        is in receipt of a qualifying component;

      or

    5. (e)

      state pension credit;

  • “super priority group obligation” means the amount of a supplier’s carbon emissions reduction obligation which is to be achieved by the promotion of measures in accordance with article 13A;

  • “supplier” has the meaning given by article 4;

  • “U value” means the measure in W/m2K of heat transmission through a wall.

(2)

In this Order, subject to article 10, a qualifying action means—

(a)

a demonstration action;

(b)

a market transformation action;

(c)

subject to article 14, a priority group flexibility action; or

(d)

a standard action.

(3)

In this Order—

(a)

a demonstration action is an action which is reasonably expected to achieve a reduction in carbon emissions;

F5(b)

a market transformation action means—

(i)

between 1st April 2008 and 31st March 2011 the provision of microgeneration units where such provision will achieve a reduction in carbon emissions;

(ii)

the provision of solid wall insulation where such provision will achieve a reduction in carbon emissions;

(iii)

the provision of a real-time display;

(iv)

the provision of a home energy advice package;

(v)

between 1st April 2008 and 31st March 2011 the provision of any other action which will achieve a reduction in carbon emissions but which the Authority did not determine to be a qualifying action under the 2001 Order; or

(vi)

on and from 1st April 2011 the provision of any other action which will achieve a reduction in carbon emissions but which the Authority did not determine to be a qualifying action under the 2004 Order;

(c)

a priority group flexibility action means the provision to a householder within paragraph (a) or (b) of the priority group—

(i)

between 1st April 2008 and 31st March 2011 of ground source heat pumps in respect of a property which does not have a mains gas supply; or

(ii)

of solid wall insulation which lowers the U-value of the walls to 0.5 W/m2K or less;

F6(d)

a standard action means an action which—

(i)

will achieve a reduction in carbon emissions; or

(ii)

is the provision of a real-time display or a home energy advice package.

(4)

Paragraph 1 of Schedule 2 has effect.

3Overall carbon emissions reduction targetF1

(1)

The overall carbon emissions reduction target for the period 1st April 2008 to 31st December 2012 is 293 million lifetime tonnes of carbon dioxide of which—

(a)

a reduction of 73.4 million lifetime tonnes of carbon dioxide must be achieved by promoting measures mentioned in article 9(1A) (“the overall insulation target”); and

(b)

a reduction of 16.2 million lifetime tonnes of carbon dioxide must be achieved by promoting measures in the super priority group (“the overall super priority group target”).

(2)

The Authority must ensure that the sum of all—

(a)

carbon emissions reduction obligations imposed on suppliers equals the overall carbon emissions reduction target;

(b)

insulation obligations imposed on suppliers equals the overall insulation target;

(c)

super priority group obligations imposed on suppliers equals the overall super priority group target.

4Definition of supplierI1

(1)

A person is a supplier if that person holds a supply licence—

(a)

under section 6(1)(d) of the Electricity Act 1989 and that person satisfies paragraph (2) or (3) in respect of the supply of electricity; or

(b)

under section 7A of the Gas Act 1986 and that person satisfies paragraph (2) or (3) in respect of the supply of gas.

F1(2)

A person must supply—

(a)

at least 50,000 domestic customers on 31st December of the year 2007, 2008, 2009 or 2010; or

(b)

at least 250,000 domestic customers on 31st December 2011.

F2(3)

A company that belongs to a group of companies must supply domestic customers and—

(a)

on 31st December of the year 2007, 2008, 2009 or 2010 the number of domestic customers of that company and of other companies in the group must be at least 50,000; or

(b)

on 31st December 2011 the number of domestic customers of that company and of other companies in the group must be at least 250,000.

(4)

Where a person satisfies paragraph (1) in respect of electricity and of gas that person is a separate supplier in respect of each supply.

F3(5)

A new supplier is a supplier to whom paragraph (1) applies for the first time on 31st December 2008, 31st December 2009, 31st December 2010 or 31st December 2011.

5Notification by suppliersI1

F1(1)

A supplier must notify the Authority by 14th February in each year in which any part of the obligation period falls of the number of that supplier’s domestic customers on the previous 31st December.

(2)

Where a supplier fails to do so, the Authority may determine that number.

(3)

A number determined under paragraph (2) is to be treated as if it were notified by the supplier.

6Determining carbon emissions reduction obligations and insulation obligationsF1

(1)

The Authority must determine a supplier’s—

(a)

carbon emissions reduction obligation;

(b)

insulation obligation; and

(c)

super priority group obligation.

(2)

The Authority must refer to the matters in article 7 when determining each of the obligations referred to in paragraph (1).

(3)

Subject to paragraph (4), the obligation period is the period—

(a)

commencing 1st April 2008, except for a new supplier; and

(b)

ending on 31st December 2012.

(4)

For a new supplier who satisfies article 4(1) for the first time on—

(a)

31st December 2008, the obligation period commences on 1st April 2009;

(b)

31st December 2009, the obligation period commences on 1st April 2010;

(c)

31st December 2010, the obligation period commences on 1st April 2011;

(d)

31st December 2011, the obligation period commences on 1st April 2012.

(5)

The Authority must notify a supplier of that supplier’s—

(a)

carbon emissions reduction obligation by 28th February prior to the commencement of the obligation period;

(b)

insulation obligation by 1st November 2010 or, in respect of a new supplier to whom article 4(1) applies for the first time on or after 31st December 2010, by 28th February 2011 or 28th February 2012 as applicable; and

(c)

super priority group obligation by 1st November 2010 or, in respect of a new supplier to whom article 4(1) applies for the first time on or after 31st December 2010, by 28th February 2011 or 28th February 2012 as applicable.

7Matters to be considered by the AuthorityI1

F1(1)

The matters referred to in article 6(2) are—

(a)

total customer numbers;

(b)

supplier customer numbers;

(c)

in relation to the carbon emissions reduction obligation, the overall carbon emissions reduction target;

(d)

in relation to the insulation obligation, the overall insulation target; and

(e)

in relation to the super priority group obligation, the overall super priority group target.

(2)

For a supplier, except a new supplier—

(a)

total customer numbers are the total number of domestic customers supplied by suppliers on 31st December 2007;

(b)

supplier customer numbers are the number of domestic customers supplied by that supplier on 31st December 2007.

(3)

For a new supplier—

F2(a)

total customer numbers are the mean of the total number of domestic customers supplied by suppliers on—

(i)

31st December 2007;

(ii)

31st December 2008;

(iii)

31st December 2009;

(iv)

31st December 2010; and

(v)

where applicable, 31st December 2011;

(b)

supplier customer numbers are the mean of—

(i)

the number of domestic customers supplied by the supplier on 31st December prior to the commencement of the obligation period; and

(ii)

zero for each 31st December prior to that date until and including 31st December 2007.

8Review of obligations by the AuthorityI1

F1(1)

When the Authority has all suppliers’ customers numbers, notified or determined under article 5, the Authority must—

(a)

review a supplier’s—

(i)

carbon emissions reduction obligation;

(ii)

insulation obligation; and

(iii)

super priority group obligation;

and

(b)

notify a supplier of any amendment to that supplier’s obligations within 14 days of the date on which the customer numbers are required to be notified under article 5(1) (“the notification date”).

(2)

The review must be carried out by reference to—

(a)

the mean of the total number of domestic customers supplied by suppliers on 31st December 2007 and on each anniversary of that date;

(b)

supplier customer numbers;

(c)

in relation to the carbon emissions reduction obligation, the overall carbon emissions reduction target;

(d)

in relation to the insulation obligation, the overall insulation target;

(e)

in relation to the super priority group obligation, the overall super priority group target.

(3)

Except for a new supplier, supplier customer numbers are the mean of the number of domestic customers supplied by a supplier on—

(a)

31st December prior to the commencement of the obligation period; and

(b)

each 31st December subsequent to the commencement of the obligation period.

F2(4)

For a new supplier, supplier customer numbers are the mean of—

(a)

the number of domestic customers supplied by that supplier on the date on which article 4(1) applies to that supplier for the first time;

(b)

zero for each of—

(i)

31st December 2007;

(ii)

any subsequent 31st December which occurs before the date on which article 4(1) applies to the supplier for the first time; and

(c)

the number in each case of domestic customers supplied by that supplier on each 31st December occurring during the obligation period but before the notification date.

F3(5)

The number of domestic customers under paragraph (3)(b) on each 31st December subsequent to the commencement of the obligation period, or under paragraph (4)(c), is deemed to be zero where—

(a)

in respect of any 31st December other than 31st December 2011—

(i)

a supplier belongs to a group of companies and that group has fewer than 50,000 domestic customers on that date; or

(ii)

for any other supplier, that supplier has fewer than 50,000 domestic customers on that date;

(b)

in respect of 31st December 2011—

(i)

a supplier belongs to a group of companies and that group has fewer than 250,000 domestic customers on that date; or

(ii)

for any other supplier, that supplier has fewer than 250,000 domestic customers on that date.

9Achievement of carbon emissions reduction obligationsF1

(1)

 A supplier must achieve its carbon emissions reduction obligation by promoting qualifying actions to domestic energy users.

(F21A)

A supplier must achieve its insulation obligation by promoting on or after 1st August 2010—

(a)

cavity wall insulation;

(b)

flat roof insulation;

(c)

loft insulation;

(d)

solid wall insulation; or

(e)

under floor insulation,

which is professionally installed.

(2)

A qualifying action must be approved by the Authority.

(3)

A supplier must achieve its carbon emissions reduction obligation without exceeding any of the following limits—

(a)

no more than Y% minus X% of a supplier’s carbon emissions reduction obligation may be achieved by—

(i)

a market transformation action;

(ii)

a demonstration action; or

(iii)

both such actions;

(b)

no more than 2% of a supplier’s carbon emissions reduction obligation may be achieved by the provision of—

(i)

a real-time display;

(ii)

a home energy advice package; or

(iii)

both.

(4)

In paragraph (3)(a)—

  • “Y%” means—

    1. (a)

      10%; but

    2. (b)

      12% where—

      1. (i)

        the Authority approves the provision of microgeneration units as a market transformation action; and

      2. (ii)

        at least 2% of a supplier’s carbon emissions reduction obligation is achieved by the provision of microgeneration units;

  • “X%” means 0%, but where a percentage of a supplier’s carbon emissions reduction obligation is achieved by the actions described in paragraph (3)(b), that percentage, subject to a maximum of 2%.

(5)

The Authority—

(a)

must determine whether or not the limits in paragraph (3) are exceeded; but

(b)

in doing so it must not apply the increased reduction in respect of market transformation actions provided for by—

(i)

article 19(4)(b); or

(ii)

article 19(4A)(a), (b) or (c).

(F36)

A qualifying action approved by the Authority for the purposes of the Electricity and Gas (Community Energy Saving Programme) Order 2009 is not by that approval a qualifying action under this Order.

10Purposes for which a qualifying action must be promotedI1

(1)

An action is a qualifying action only if it is promoted for the purpose of—

(a)

achieving improvements in energy efficiency;

(b)

increasing the amount of electricity generated or heat produced by microgeneration;

(c)

increasing the amount of heat produced by any plant which relies wholly or mainly on wood; or

(d)

reducing energy consumption.

(2)

In this article, “plant” includes any equipment, apparatus or appliance.

11NotificationsI1

(1)

An action which a supplier intends to be a qualifying action must be notified to the Authority within one month of the action being commenced.

(2)

A notification must include sufficient information to show how the supplier intends the action to be—

(a)

a standard action;

(b)

a market transformation action;

(c)

a priority group flexibility action; or

(d)

a demonstration action.

(3)

In relation to a demonstration action, the supplier must provide with the notification—

(a)

the following information—

(i)

how the action is expected to promote a reduction in carbon emissions;

(ii)

the arrangements for monitoring whether the action reduces carbon emissions;

(iii)

how the supplier will assess the effectiveness of the action at promoting a reduction in carbon emissions;

(iv)

a justification for the scale of the proposed action; and

(v)

the estimated cost of promoting and monitoring such an action and a breakdown of that cost;

and

(b)

whether or not it consents to the publication of information provided to the Authority in relation to the monitoring and assessment of the action.

F1(3A)

A notification in respect of a measure listed in article 9(1A) must contain sufficient information to show whether the supplier intends the action to be promoted in the priority group or super priority group.

12Approval of actions by the AuthorityI1

F1(1)

The Authority must determine whether or not it approves an action as a qualifying action and whether that approval is in respect of a supplier’s—

(a)

insulation obligation;

(b)

priority group obligation; or

(c)

super priority group obligation.

(2)

Where the Authority approves an action, it must be satisfied that the action is promoted in accordance with article 10.

(3)

Subject to paragraph (4), the Authority must not approve an action as a market transformation action where—

(a)

there exists a similar action to the type of action intended to be promoted; and

(b)

the action to be promoted does not achieve a significantly greater reduction in carbon emissions than that similar action.

(4)

Paragraph (3) does not apply to the promotion of solid wall insulation or F2microgeneration units.

(5)

For the purposes of paragraph (3) the Authority must compare the carbon emissions reduced by the particular action with the benchmark action.

F3(6)

The benchmark action means an action under the 2001 Order or the 2004 Order, as applicable, which achieved the greatest carbon emission reductions for an action of that type.

(7)

The Authority must not approve an action as a demonstration action unless—

(a)

it is satisfied that the information provided under article 11(3)(a) is reasonable; and

(b)

the supplier consents to the to the publication of information in relation to the monitoring and assessment of the action.

F4(7A)

The Authority must not approve as a standard action or a market transformation action the provision of a real-time display or a home energy advice package unless it is satisfied in respect of the matters in paragraph (7B).

(7B)

The matters referred to in paragraph (7A) are—

(a)

the promotion of a real-time display or a home energy advice package makes clear that a display or package will only be provided to a domestic energy user who requests F5, in writing, such a display or package;

(b)

a supplier agrees to provide a real-time display or a home energy advice package to a domestic energy user who has requested F6, in writing, such a display or package; and

(c)

in respect of the provision of a real-time display or a home energy advice package the promotion takes place after 11th September 2008.

(F77C)

The Authority must not on or after 1st April 2011 approve as a qualifying action the provision of compact fluorescent lamps or halogen lamps.

F8(7D)

 The Authority must not on or after 1st August 2010 approve as a qualifying action the provision of a measure which will not be professionally installed unless that measure has been requested, in writing, by a domestic energy user.

(7E)

The Authority must not on or after 1st April 2011 approve as a qualifying action the provision of—

(a)

an air source heat pump;

(b)

a biomass boiler with a capacity of 300 kW or less;

(c)

a combined heat and power plant with an electrical capacity of 2 kW or less;

(d)

a ground source heat pump;

(e)

a hydro generating station with a capacity of 50 kW or less;

(f)

a solar photovoltaic panel with a capacity of 50 kW or less;

(g)

a solar thermal water heating system with a capacity of 300 kW or less; or

(h)

wind turbine with a capacity of 50 kW or less,

unless it is satisfied that the measure will be promoted to a member of the super priority group.

(8)

The Authority must notify the supplier of its determination under this article and give reasons for it.

13Priority group obligationsI1

(1)

A supplier must achieve the priority group obligation.

(2)

The priority group obligation means that at least 40% of the carbon emissions reduction obligation is achieved by action carried out in the priority group.

13ASuper priority group obligationF1

(1)

A supplier must achieve the super priority group obligation by promoting on or after 1st August 2010 measures to members of the super priority group in accordance with the following provisions of this article.

(2)

Subject to paragraph (3), a supplier must achieve the super priority group obligation by the provision to members of the super priority group, on or after 1st August 2010, of—

(a)

an air source heat pump;

(b)

cavity wall insulation;

(c)

flat roof insulation;

(d)

fuel switching;

(e)

a ground source heat pump;

(f)

loft insulation;

(g)

a replacement boiler;

(h)

solid wall insulation;

(i)

under floor insulation; or

(j)

a wood chip boiler, including a combined heat and power wood chip boiler,

which is professionally installed.

(3)

Where a supplier—

(a)

promotes a single measure to a member of the super priority group, that measure must be one of the measures listed in paragraph (2);

(b)

promotes more than one measure to a member of the super priority group, at least one of those measures must be a measure listed in paragraph (2).

(4)

In this article—

(a)

“fuel switching” means changing the primary heating fuel used by a domestic energy user from coal, electricity or oil to a mains gas supply;

(b)

“replacement boiler” means a boiler which replaces a G-rated boiler and which meets the requirements of Part L of Schedule 1 to the Building Regulations 2000; and where “G-rated boiler” means a boiler which has a seasonal efficiency value of less than 70% when that boiler is assessed against the Standard Assessment Procedure for Energy rating of Dwellings (2005 Edition).

14Priority group flexibility actionI1

(1)

No more than 12.5% of the priority group obligation may be achieved by promoting priority group flexibility action.

(2)

Priority group flexibility action that exceeds the limit in paragraph (1) is not a qualifying action.

15Estimated reduction in carbon emissionsI1

(1)

The Authority must estimate the reduction in carbon emissions for an action which it approves as a qualifying action.

(2)

To estimate the reduction for a standard action, F1except a standard action listed in paragraph (2A), the Authority must apply to that action the appropriate carbon co-efficient values set out in Schedule 3.

F2(2A)

To estimate the reduction for a standard action which is—

(a)

loft insulation plus, the Authority must—

(i)

apply to that action the appropriate carbon co-efficient values set out in Schedule 3; and

(ii)

increase the reduction in carbon emissions expected to be achieved in accordance with article 19(3A)(a)(ii) as if the reduction in carbon emissions expected to be achieved by such action is achieved;

(b)

a real-time display, the Authority must do so in accordance with article 19(4A)(a) or (b), as applicable, as if the reduction in carbon emissions expected to be achieved by such action is achieved but must not increase the reduction by 50%;

(c)

a home energy advice package, the Authority must do so in accordance with article 19(4A)(c) as if the reduction in carbon emissions expected to be achieved by such action is achieved but must not increase the reduction by 50%.

(3)

To estimate the reduction for a market transformation action, F3except a market transformation action which is the provision of a real-time display or a home energy advice package, the Authority must—

(a)

apply to that action the appropriate carbon co-efficient values set out in Schedule 3; and

(b)

increase the reduction in carbon emissions expected to be achieved by that action by 50%.

F4(3A)

To estimate the reduction for a market transformation action which is the provision of—

(a)

a real-time display, the Authority must do so in accordance with article 19(4A)(a) or (b), as applicable, as if the reduction in carbon emissions expected to be achieved by such action is achieved;

(b)

a home energy advice package, the Authority must do so in accordance with article 19(4A)(c) as if the reduction in carbon emissions expected to be achieved by such action is achieved.

(4)

To estimate the reduction for a priority group flexibility action, the Authority must do so in accordance with article 20 as if the reduction in carbon emissions expected to be achieved by such action is achieved.

(5)

To estimate the reduction for a demonstration action, the Authority must use the formula in article 21.

(6)

The Authority must notify a supplier of the estimates it makes under this article.

16Reporting and monitoringI1

(1)

A supplier must provide to the Authority—

(a)

information relating to—

(i)

its proposals for complying with any aspect of its F1carbon emissions reduction obligation, insulation obligation, priority group obligation and super priority group obligation; and

F2(ii)

whether the supplier has complied with those obligations, including such information which the Authority has informed the supplier it requires for the purposes of verifying that no qualifying action under the Electricity and Gas (Community Energy Saving Programme) Order 2009 is counted for the purposes of compliance under this Order;

(b)

in relation to a demonstration action—

(i)

the information obtained by the supplier on whether the action is reducing carbon emissions; and

(ii)

the supplier’s assessment of the effectiveness of the action at promoting a reduction in carbon emissions;

and

F3(c)

from 1st August 2010, in relation to the provision of solid wall insulation, approved as a standard action, market transformation action or a priority group flexibility action, information relating to the main fuel source used to heat the premises where the solid wall insulation is installed.

(2)

The information must be provided by a supplier in such form and at such time as the Authority may reasonably request.

(3)

Information provided under paragraph (1)(b) must be published by the Authority but it may do so in such form as it thinks fit.

(4)

By 31st July 2009 and 31st July 2010 the Authority must submit to the Secretary of State a report setting out in respect of the year ending on the preceding 31st March the progress made—

(a)

by each supplier towards complying with the supplier’s—

(i)

carbon emissions reduction obligation;

(ii)

priority group obligation;

and

(b)

towards achieving the overall carbon emissions reduction target.

F4(5)

By 31st July 2011, 31st July 2012 and 30th April 2013 the Authority must submit to the Secretary of State a report setting out in respect of the year ending on the preceding 31st March the progress made—

(a)

by each supplier towards complying with the supplier’s—

(i)

carbon emissions reduction obligation;

(ii)

insulation obligation;

(iii)

priority group obligation; and

(iv)

super priority group obligation;

and

(b)

towards achieving the overall carbon emissions reduction target, including information about the percentage of the overall target which has been met by all suppliers by the promotion of real-time displays, home energy advice packages and market transformation actions.

17Credit of excess actionsI1

(1)

Not later than 16th May 2008, a supplier may apply to the Authority to credit towards its carbon emissions reduction obligation the reduction in carbon emissions achieved by excess action.

(2)

Excess action means the number of actions—

(a)

approved by the Authority under the 2004 Order; and

(b)

which exceeded that required by the supplier to meet its energy efficiency obligation under that Order.

(3)

The reduction in carbon emissions achieved by excess action must be determined in accordance with this Order.

(4)

The Authority must approve the application if it is satisfied that the supplier—

(a)

has met its energy efficiency obligation under the 2004 Order; and

(b)

has excess action.

18TransfersI1

(1)

The carbon emissions reduction obligation of one supplier (“supplier A”) may be treated as achieved in whole or part by qualifying action completed by another supplier (“supplier B”) (“a supplier transfer”).

(2)

A supplier transfer requires approval by the Authority.

(3)

Suppliers A and B must—

(a)

apply for approval in writing to the Authority by F131st December 2012; and

(b)

provide to the Authority such information, including the number and type of qualifying actions in question, as the Authority may require.

(4)

The Authority must not approve a supplier transfer where it has reasonable grounds to believe that, if the transfer were approved, the carbon emissions reduction obligation placed on supplier B will not be achieved.

(5)

The completed qualifying action under a supplier transfer does not count towards the carbon emissions reduction obligation of supplier B.

19Notification of actions and determination of reductions in carbon emissionsI1

F1(1)

A supplier must notify the Authority not later than 31st January 2013 of the number and type of qualifying actions which it has completed in respect of the following—

(a)

the carbon emissions reduction obligation;

(b)

the insulation obligation;

(c)

the priority group obligation; and

(d)

the super priority group obligation.

(2)

On receipt of that notification, the Authority must—

(a)

verify that the qualifying actions notified under paragraph (1) have not been approved as qualifying actions under the Electricity and Gas (Community Energy Saving Programme) Order 2009; and

(b)

determine the carbon emissions to be attributed to those actions which the Authority is satisfied should count for the purposes of this Order.

(3)

To determine the reduction for a standard action, F2except a standard action listed in paragraph (3A), the Authority must apply to that action the appropriate carbon co-efficient values set out in Schedule 3.

F3(3A)

To determine the reduction for a standard action which is—

(a)

loft insulation plus, the Authority must—

(i)

apply to that action the appropriate carbon co-efficient values set out in Schedule 3; and

(ii)

increase the reduction in carbon emissions achieved by—

(aa)

100% where the loft insulation is installed in the property of a domestic energy user who is a member of the priority group;

(bb)

50% where the loft insulation is installed in the property of a domestic energy user who is not in the priority group;

(cc)

50% where the loft insulation is promoted through a retail outlet.

(b)

a real-time display, the Authority must do so in accordance with paragraph (4A)(a) or (b), as applicable, but must not increase the reduction by 50%;

(c)

a home energy advice package, the Authority must do so in accordance with paragraph (4A)(c) but must not increase the reduction by 50%.

(4)

To determine the reduction for a market transformation action, F4except a market transformation action which is described in paragraph (4A), the Authority must—

(a)

apply to that action the appropriate carbon co-efficient values set out in Schedule 3; and

(b)

increase the reduction in carbon emissions achieved by that action by 50%.

F5(4A)

To determine the reduction for a market transformation action which is the provision of—

(a)

a real-time display which does not use a short-life battery, the Authority must attribute a carbon emissions reduction of 0.996 lifetime tonnes of carbon dioxide and increase the carbon emissions reduction by 50%;

(F6b)

a real-time display which uses a short-life battery, the Authority must—

(i)

subject to paragraph (ii), attribute a carbon emissions reduction of 0.498 lifetime tonnes of carbon dioxide and increase the carbon emissions reduction by 50%; or

(ii)

where the real-time display was provided between 11th September 2008 and 21st July 2009, attribute a carbon emissions reduction of 0.747 lifetime tonnes of carbon dioxide and increase the carbon emissions reduction by 50%;

(c)

a home energy advice package, the Authority must attribute a carbon emissions reduction of 0.675 lifetime tonnes of carbon dioxide and increase the carbon emissions reduction by 50%.

(5)

To determine the reduction for a priority group flexibility action, the Authority must do so in accordance with article 20.

(6)

To determine the reduction for a demonstration action, the Authority must do so in accordance with article 21.

20Carbon emissions reduction for priority group flexibility actionI1

(1)

To determine the carbon emissions reduction to be attributed to a priority group flexibility action, the Authority must—

(a)

apply to that action the appropriate carbon co-efficient values set out in Schedule 3; and

(b)

increase the reduction in carbon emissions achieved by an action listed in paragraph (2) by the percentage given in that paragraph.

(2)

The actions and percentages are—

(a)

the installation of a ground source heat pump, 245%;

(b)

the installation of internal solid wall insulation, 95%;

(c)

the installation of external solid wall insulation, 175%.

21Carbon emissions reduction for demonstration actionI1

(1)

The carbon emissions reduction to be attributed to a demonstration action is provided by the formula—

carbon emissions reduction= x 18 lifetime tonnes of carbon dioxide

where x is the estimated cost of promoting and monitoring the action, which cost the Authority was satisfied was reasonable under article 12.

22Final determination and reportingF1

(1)

The Authority must determine whether a supplier has achieved its carbon emissions reduction obligation and notify the supplier of that determination not later than 30th April 2013.

(2)

Not later than 30th April 2013 the Authority must submit to the Secretary of State a final report setting out—

(a)

whether each supplier has complied with its—

(i)

carbon emissions reduction obligation;

(ii)

insulation obligation;

(iii)

priority group obligation; and

(iv)

super priority group obligation;

and

(b)

whether the overall carbon emissions reduction target was achieved, including how much of the overall carbon emissions reduction target was met by the promotion of real-time displays, home energy advice packages and market transformation actions.

23EnforcementI1

A requirement placed on a supplier under this Order is a relevant requirement for the purpose of—

(a)

Part I of the Electricity Act 1989; and

(b)

Part I of the Gas Act 1986.

Signature

Jeff Rooker

Minister of State

Department for Environment, Food and Rural Affairs

30th January 2008

1F1

A home energy advice package means—

(a)

a home energy survey;

(b)

home energy assistance; and

(c)

a home energy report;

2F1

A home energy survey means the survey of a domestic energy user’s property carried out by an energy assessor with a view to providing home energy assistance.

3F1

Home energy assistance means information provided by an energy assessor to a domestic energy user, in person at the time of the home energy survey, which deals with such of the matters set out in paragraph 4 as are applicable to that user.

4F1

The matters referred to in paragraph 3 are—

(a)

where programming or heating controls—

(i)

are installed, how these controls may be used more effectively to achieve energy efficiency savings or energy savings;

(ii)

are not installed, whether they would be appropriate for the property.

(b)

where a boiler is installed to provide heating or hot water—

(i)

an assessment as to whether that boiler is working efficiently;

(ii)

how that boiler may be used more effectively to achieve energy efficiency savings or energy savings;

(iii)

whether that boiler could be replaced by a more efficient model.

(c)

in respect of any electrical appliances or devices, how they may be used more effectively to achieve energy efficiency savings or energy savings;

(d)

how energy efficiency savings or energy savings can be achieved in relation to general hot-water use especially that connected to the use of showers, baths and washing machines;

(e)

such other information which an energy assessor reasonably believes may assist a domestic energy user to achieve energy efficiency savings or energy savings.

5F1

A home energy report means a report that sets out in writing—

(a)

the home energy assistance;

(b)

a list of actions or measures which will help the particular domestic energy user to achieve energy efficiency savings or energy savings; and

(c)

the contact details for the Energy Saving Trust,

and is provided to a domestic energy user within three months of the home energy survey.

1I1

In relation to England and Wales, householder means a person who is—

(a)

a freeholder;

(b)

in the case of England only, a leaseholder with a term of 21 years or more unexpired at the time the specified reduction is promoted; F1or

F2(bb)

in the case of Wales only, a holder of a secure contract (within the meaning given by section 8 of the Renting Homes (Wales) Act 2016), or an introductory standard contract (within the meaning given by section 16 of the Renting Homes (Wales) Act 2016), except where the landlord is—

(i)

a private registered provider of social housing (within the meaning given by section 80(3) of the Housing and Regeneration Act 2008);

(ii)

a registered social landlord (being a person registered in the register maintained under section 1 of the Housing Act 1996); or

(iii)

a private landlord (within the meaning given by section 10 of the Renting Homes (Wales) Act 2016); or

(c)

a tenant, including a sub-tenant, who has—

(i)

a protected occupancy or statutory tenancy under the Rent (Agriculture) Act 1976f1;

(ii)

a statutory tenancy under the Rent Act 1977f2;

(iii)

a secure tenancy under Part IV of the Housing Act 1985f3 or an introductory tenancy under Chapter I of Part V of the Housing Act 1996f4;

(iv)

a licence to occupy which meets the conditions in paragraph 12(a) and (b) Schedule 1 to the Housing Act 1985f5 (almshouse licences); or

(v)

an assured agricultural occupancy under Part I of the Housing Act 1988f6, at the time the action is promoted to him.

2I1

(1)

In relation to Scotland, householder means a person who is the owner or tenant of a dwelling.

(2)

For the purposes of this paragraph—

(a)

“owner” includes any person who under the Land Clauses Actsf1 would be enabled to sell and convey land to promoters of an undertaking;

(b)

“tenant” includes a person who—

(i)

is a service occupant;

(ii)

has a licence to occupy a dwelling; or

(iii)

is a cottar within the meaning of section 12(5) of the Crofters (Scotland) Act 1993f2,and, in any case, a sub-tenant.

1I1

In this Schedule—

  • “the 1983 Order” means the Naval, Military and Air Forces etc. (Disablement and Death) Services Pensions Order 1983f1;

  • “the 1983 Scheme” means the Personal Injuries (Civilians) Scheme 1983f2;

  • “the 1992 Act” means the Social Security Contributions and Benefits Act 1992f3;

  • “attendance allowance” means—

    1. (a)

      an attendance allowance payable under section 64 of the 1992 Act;

    2. (b)

      an increase of an allowance payable in respect of constant attendance under a scheme under, or having effect under, paragraph 4 of Schedule 8 to the 1992 Act;

    3. (c)

      a payment made under article 14, 15 or 16 of the 1983 Scheme or any analogous payment;

    4. (d)

      any payment based on the need for attendance which is paid with a war disablement pension; or

    5. (e)

      any payment intended to compensate for the non-payment of a payment, allowance or pension mentioned in any of paragraphs (a) to (d) of this definition;

  • “constant attendance allowance” means an allowance payable under regulations made under paragraph 7(2)(b) of Schedule 8 to the 1992 Act;

  • “mobility supplement” means a supplement payable under article 26A of the 1983 Order or under article 25A of the 1983 Scheme (including payment intended to compensate for the non-payment of such a supplement);

  • “war disablement pension” means—

    1. (f)

      any retired pay, pension, or allowance granted in respect of disablement—

      1. (i)

        under powers conferred by or under the Air Forces (Constitution) Act 1917f4, the Personal Injuries (Emergency Provisions) Act 1939f5, the Pensions (Navy, Army, Air Force and Mercantile Marine) Act 1939f6, the Polish Resettlement Act 1947f7 or section 151 of the Reserve Forces Act 1980f8; or

      2. (ii)

        under article 10 of the 1983 Order;

    2. (g)

      without prejudice to paragraph (a) of this definition, any retired pay or pension to which any of paragraphs (a) to (f) of section 64(1) of the Income Tax (Earning and Pensions) Act 2003f9 applies.

2I1

The benefits relevant for the purposes of paragraph (a) of the definition of the priority group in article 2 are—

(a)

council tax benefitf1;

(b)

housing benefit;

(c)

income support;

(d)

an income-based jobseeker’s allowancef2;

(e)

an attendance allowance;

(f)

a disability living allowancef3;

(g)

a war disablement pension which includes—

(i)

a mobility supplement; or

(ii)

a constant attendance allowance;

(h)

a disablement pensionf4 which includes a constant attendance allowance; F1...

F2(i)

state pension credit; and

F3(j)

an income-related employment and support allowance under the Welfare Reform Act 2007.

3I1

The credits relevant for the purposes of paragraph (b) of the definition of priority group in article 2 are—

(a)

child tax creditf1; and

(b)

working tax credit.

Schedule 3CARBON CO-EFFICIENT VALUESI1

Fuel SourceCarbon Co-efficient valuef1
(1)

In kilograms of carbon dioxide per kilowatt hour

Coal0.2996
Electricity0.4308
Gas0.1899
Liquid petroleum gas0.2140
Oil0.2493
Wood0.0249

Explanatory note

(This note is not part of the Order)

This Order applies in Great Britain and places an obligation on electricity and gas suppliers who have 50,000 or more domestic customers to achieve a carbon emissions reduction obligation. The Order is administered and enforced by the Office for Gas and Electricity Markets (“the Authority”).

Article 3 sets out the overall carbon emissions reduction target which must be achieved by electricity and gas suppliers between 1st April 2008 and 31st March 2011.

Article 4 defines a supplier. Article 5 places an obligation on a supplier to notify the Authority of the number of the supplier’s domestic customers.

Article 6 requires the Authority to determine a supplier’s carbon emissions reduction obligation and provides when a carbon emissions reduction obligation commences. Article 7 contains matters which the Authority must consider when determining a supplier’s carbon emissions reduction obligation. Article 8 provides for a review of a supplier’s carbon emissions reduction obligation.

Article 9 provides that a supplier’s carbon emissions reduction obligation must be achieved by promoting qualifying actions to domestic energy users. Limits are set on the extent to which particular qualifying actions can be promoted.

Article 10 provides for the purposes for which a qualifying action must be promoted. Article 11 provides for notifications of actions by suppliers. Article 12 sets out how the Authority is to approve a particular action.

Article 13 requires a supplier to achieve at least 40% of the supplier’s carbon emissions reduction obligation by promoting measures to members of the priority group. Article 14 provides for particular action which a supplier may decide to promote to achieve this obligation.

Article 15 requires the Authority to estimate the carbon emissions reduction which is likely to be achieved by a qualifying action which it has approved. Article 16 provides for information that a supplier must provide to the Authority.

Under article 17 a supplier may apply to credit towards the supplier’s carbon emissions reduction obligation any excess action which the supplier achieved under the Electricity and Gas (Energy Efficiency Obligations) Order 2004. Article 18 provides for the transfer of completed qualifying actions between suppliers.

Article 19 requires a supplier to notify the Authority of the number and type of qualifying actions the supplier has completed. The Authority must determine the carbon emissions reduction to be attributed to a completed action. Articles 20 and 21 provide for such determination in relation to a priority group flexibility action and a demonstration action.

Article 22 requires the Authority to determine whether a supplier’s carbon emissions reduction obligation has been achieved. The Authority must submit a final report to the Secretary of State setting out whether each supplier’s carbon emissions reduction obligation and the priority group obligation under article 13 has been achieved. The Authority must report whether the overall carbon emissions reduction target was achieved.

By article 23, requirements of this Order are a relevant requirement for the purposes of Part I of the Electricity Act 1989 and Part I of the Gas Act 1986 and may be enforced accordingly.

An impact assessment has been prepared in respect of this Order and copies can be obtained from the Climate and Energy: Household and Markets policy division, Department for Environment, Food and Rural Affairs, Noble House, 17 Smith Square, London, SW1A 3JR.