Energy Efficiency Commitment
What is the Energy Efficiency Commitment (EEC)?
The Energy Efficiency Commitment (EEC) is Government legislation that sets targets on gas and electricity energy suppliers to achieve improvements in energy efficiency by providing energy efficiency measures to households across the UK. When and why was EEC introduced?
The EEC began in April 2002 and required energy suppliers to achieve a target amount of domestic energy efficiency improvements by 31 March 2005. The second phase of the EEC began in 2005 and runs to 2008. The EEC supports the Government's goals of:
- Cutting carbon emissions by 60% by 2050.
- Reducing fuel poverty by ensuring half the energy savings are targeted at households in receipt of certain income-related benefits or tax credits.
What are the EEC targets?
The energy saving target for the EEC 2005-2008 (EEC 2) was set by DEFRA at the end of 2004. The target is 130TWh, more than double the target set for EEC 1. Under EEC 1 suppliers were required to spend the equivalent of ВЈ3.60 per customer on energy savings. This needs to increase by over ВЈ10 per fuel by 2008 under EEC2. The suppliers involved in the scheme are required to provide progress reports each quarter to indicate the energy savings each of their schemes has achieved and is forecast to deliver.
How do energy suppliers meet targets?
By encouraging and assisting their domestic customers to make energy savings by installing measures such as cavity wall and loft insulation, energy efficient boilers, appliances and light bulbs.
