SSE PLC : Ofgem Report on Energy Efficiency Schemes (CERT and CESP)

01 May 2013

SSE is pleased to have delivered its full allocation of measures set out by the Carbon Emissions Reduction Target (CERT) scheme and has contracts in place to ensure it meets its allocation through the Community Energy Saving Programme (CESP).

CERT

SSE believes it has complied with the CERT scheme in full within the required timeframe although it was unable to verify and report the delivery of some of the obligations, namely the Priority Group (PG) and Super Priority Group (SPG), to Ofgem before the December 31 cut-off date. Following subsequent verification work with the Department of Work and Pensions (DWP), SSE can show it delivered the work, but this verification was completed too late to be taken into account in Ofgem's report.

SSE's evidence following the work with DWP is shown below. It has been provided to Ofgem.

CESP

In relation to the Community Energy Saving Programme (CESP), SSE has contracts in place which, when completed, will deliver its obligated carbon savings. SSE's recorded physical delivery at December 31 was 90.9%.

Due to the complexities of the scheme SSE has already physically delivered more actual carbon savings than its obligation requires. However, in line with some other energy companies, its physical delivery in the report was under 100% because it did not achieve the scheme's bonus uplifts from multiple measures in a home and density bonuses within an area.

These schemes have achieved significant energy savings for customers. For example through CERT, SSE insulated nearly 500,000 cavity walls and almost 970,000 lofts. SSE has also replaced around 30,000 boilers. As DECC recently stated there has been a substantial reduction in customers' gas and electricity usage as a result of these programmes.