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The Carbon Emissions Reduction Target (CERT) - came into force on the 1 April 2008 and will run until 2011. The programme sets an obligation on energy suppliers, with 50,000 or more domestic customers to reduce carbon dioxide emissions, by promoting energy efficiency and micro renewables to domestic energy users.  

The Government has set a CERT target of 154 million tonnes (lifetime) of CO2 – this target is divided between the obligated suppliers according to the number of domestic customers they supply electricity and gas to. The Government estimates the new obligation will stimulate around £2.8 billion investment by energy suppliers in carbon reduction measures. 

In September 2008 the Government announced plans to legislate to require energy companies and generators to provide an additional £910 million towards the National Home Energy Saving Programme – it is expected that £560 million of this additional funding will be added to the existing CERT scheme – this equates to a 20% increase in the CERT target placed on obligated suppliers. 

CERT replaces the old Energy Efficiency Commitment 2005-2008 (EEC2) programme which ended 31 March 2008 – The CERT target is equivalent to double the old EEC2 target. CERT is a carbon dioxide target rather than an energy target – this allows for suppliers to promote a wider range of initiatives. 

 

Under CERT, measures can be provided to any domestic household in Great Britain that is heated by gas, electricity, coal, oil or LPG. Eligible measures include: 

•     Wall cavity and loft insulation  

•     Lighting  

•     Heating (excluding standard boiler replacements)  

•     Appliances  

•     Innovative measures including micro-generation, biomass community heating etc  
Ofgem have found that the majority of carbon reduction savings under the CERT scheme, since it began in April, have come from insulation and lighting measures. Heating schemes account for a very small proportion of the savings achieved so far. 
 

Energy suppliers have a Priority Group obligation to meet under CERT – this equates to 40% of the individual suppliers overall contribution. The Priority Group includes those aged 70 and over and low income households (those in receipt of relevant benefits / tax credits) 

Suppliers have some flexibility on how they reach their 40% Priority Group obligation and overall target. For example, they can direct activity at those in the priority group most likely to be in hard to treat homes – by promoting ground source heat pumps and solid wall insulation they can achieve up to 

5% of their overall CERT obligation via this route and receive an uplift on the savings made. 

Under CERT innovative actions can count towards 6% of the suppliers’ obligation or 8% were at least 2% micro-generation is delivered. Innovative actions include: 

Those which aim to transform the market: those items not already covered by the programme with an aim of getting these approaches mainstreamed - an uplift of 50 per cent additional energy savings is available to obligated suppliers on market transformation actions which include micro-generation 

Demonstration projects: a proportion of suppliers’ obligation can be met through carrying out demonstration projects, to trial new types of measures or to assess customer reactions to information or measures