Ofgem published a Cert update last week. While suppliers are on track to meet most targets by 31 December, they have achieved just 22 per cent of the “super priority group” (SPG), introduced halfway through the five-year scheme. If they fail that segment, they fail the obligation and could be fined up to 10 per cent of turnover.
Some suppliers, such as British Gas, EDF and Eon, have been paying customers to take up measures such as insulation.
Utility Week asked all major suppliers whether they were confident of meeting the SPG target. Only Npower said it was. “Up to the end of January 2012, Npower had delivered more than 40 per cent of its SPG target, and if everything goes to plan, we will deliver the remainder within this timeframe,” said a spokesperson. EDF said it remained committed to the SPG target but “issues remain around data protection for the provision of the information required to satisfy the SPG qualification”.
Of the others, one supplier said the targets were “extremely stretching” and that it was becoming “more difficult and costly to find suitable households as suppliers spend ever-increasing amounts chasing a diminishing base”. The firm said Decc was “actively encouraging companies to meet targets at any cost”, which would be passed on to customers.
Energy UK said “finding SPG customers who live in properties that are suitable for insulation measures” was another challenge.
Decc told UW that the Cert “targets and deadlines are enshrined in legislation” and that any changes to the governing Cert Order would need formal consultation. Deadlines could not be extended without changes to that legislation, said a spokesperson.
This article first appeared in Utility Week’s print edition of 16 March 2012.
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