Memorandum submitted by Centrica (EEFP
21)
Centrica welcomes the opportunity to contribute
to the scope of the EFRA Select Committee's forthcoming inquiry
into energy efficiency and fuel poverty.
During the course of its inquiry, we believe
it would be useful for the Committee to consider (amongst others)
the following areas:
CERT (CARBON EMISSION
REDUCTION TARGET)
— The level of support given for microgeneration
and other emerging technologies, currently a split activity with
BERR.
— The level of support offered by Government
to energy suppliers in the delivery of challenging CERT targets,
particularly around possible forms of data-sharing.
— The level of administrative burden
faced by energy suppliers in the delivery of CERT targets.
— We believe the scope to incentivise
energy efficiency innovation through CERT and other mechanisms
are often overlooked, particularly at a research and development
level.
— Consideration should also be given
to any Suppliers Obligation post-2012 and what energy efficiency
measures this framework will involve, possibly reflecting on the
success of the Energy Efficiency Commitment.
ENERGY EFFICIENCY—OVER-LOOKED
SECTORS
— Consideration should be given to
steps which can be taken to drive and incentivise energy efficiency
in other sectors, including SME business sector, the private rental
household sectors, participation by the non-household sector.
FUEL POVERTY
— Recognition that fuel poverty is
caused by complex interaction of quality of housing stock, household
income and energy prices—not just energy prices.
— Equal consideration should be given
to these other areas during the course of the inquiry.
— Energy suppliers recognise the important
role they have to play in tackling fuel poverty, however consideration
should also be given to the role of government in tackling fuel
poverty.
DATA SHARING
— The issue of identifying those eligible
for both fuel poverty and energy efficiency supplier led schemes
remains a huge challenge for energy suppliers in terms of both
financial costs and manpower.
— We would welcome consideration into
possible forms that data-sharing with relevant Government Departments
(particularly DWP) could take.
TAKE UP
AND TARGETING
OF GOVERNMENT
BENEFITS
— Research shows that a large amount
of Government benefits go unclaimed, which would offer the potential
to make a real, sustainable difference to household income.
— Consideration should be given to
steps which could be taken both to improve the take up of Government
benefits and also to increase awareness of the help and advice
that is available on accessing Government entitlements.
WINTER FUEL
PAYMENT
— The Winter Fuel Payment is often
not used to pay energy bills. We believe that Winter Fuel Payment
should be paid directly to suppliers so that we can offset this
against their energy bills.
— In addition the Winter Fuel Payment
is paid to all those aged over 60, irrespective of income. Consideration
of whether the Winter Fuel Payment should be better targeted and
extended to other vulnerable groups would be helpful.
SMART METERS
— Consideration should be given to
the role and scope of smart meters in tackling fuel poverty and
encouraging households to become more energy efficient.
— Smart meters offer potential to lowering
household carbon emissions through more accurate readings and
lower energy usage. In addition they could be an important tool
in combating fuel poverty by potentially eliminating the adverse
cost differential between credit and prepayment meters.
April 2008
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