Energy companies that have to provide carbon savings through the Community Energy Saving Programme (Cesp) had met just 15 per cent of their target at the end of December 2011, largely through insulation and heating controls, according to Ofgem.
The regulator said companies faced “considerable challenges” in delivering the outstanding 85 per cent of their target by scheme-end in December 2012, and that they could face fines.
But Ofgem added that some technical issues had been resolved and, since the end of 2011, it had more than doubled the number of schemes approved.
The six vertically integrated suppliers had achieved at best 24 per cent (Centrica) and at worst 6 per cent (Npower) of their intended carbon savings.
According to Ofgem, some generation companies had yet to leave the starting blocks but Drax had achieved eight per cent of planned savings.
It cost Ofgem £568,100 to administer the scheme in the year to December.
This article first appeared in Utility Week’s print edition of 11 May 2012.
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