Last update: June 2014
Title of the measure:
UK 20_Supplier Obligations - Carbon Emissions Reduction
Target (CERT)
General description
The Carbon Emissions Reduction Target (CERT) was the name for the phase of energy efficiency
obligations from 2008-2012. It was an obligation requiring all domestic energy suppliers with more than
250,000 customers to make savings in the amount of CO 2 emitted by households. The commitment is met
through promotion (free or subsidised offers) of mainly energy efficiency measures to domestic
customers.
CERT was introduced in April 2008. In July 2010, CERT was extended from March 2011 to December
2012 with a higher target and an increased focus on supporting insulation.
Energy suppliers were required to deliver measures that provide overall lifetime carbon dioxide savings
of 293 MtCO 2 by December 2012, superseding the previous target of 185 MtCO 2 by March 2011. At
least two thirds of the increase in target (68%) had to be delivered through professionally installed
insulation measures.
There has also been a renewed focus targeting vulnerable households. Pre-dating the extension, energy
suppliers were already required to meet 40% of the CERT target in a ‘priority group’ of pensioners over
70 and vulnerable or low-income households, including those in receipt of certain benefits. However,
under the extension there was an additional 15% target for savings to come from a ‘super priority group’
of low-income households that are at higher risk of fuel poverty. The cost to suppliers of achieving CERT
(from April 2008 to December 2012) was estimated to total £5.5 billion.
The Department of Energy and Climate Change (DECC) was responsible for setting the overall target
with Ofgem, the gas and electricity regulator, required to monitor and enforce suppliers’ compliance.
Ofgem reported supplier progress towards their CERT target in summary form on a quarterly basis and
provided a more extensive annual review of the scheme (see link below). Under a voluntary agreement
between DECC, Energy Saving Trust (EST) and CERT-obligated energy suppliers, energy suppliers
agreed to report details of all professionally installed cavity wall and loft insulation measures into the
Energy Saving Trust’s Homes Energy Efficiency Database.
Since January 2013 CERT has been replaced by the Energy Company Obligation (ECO) (see
UK33_Supplier Obligations - Energy Company Obligation (ECO)).
UK law:
For more details see
The Electricity and Gas (Carbon Emissions Reduction) (Amendment) Order 2010
http://www.legislation.gov.uk/uksi/2010/1958/contents/made
The Electricity and Gas (Carbon Emissions Reduction) (Amendment) Order 2009
http://www.legislation.gov.uk/uksi/2009/1904/contents/made
The Electricity and Gas (Carbon Emissions Reduction) Order 2008
http://www.legislation.gov.uk/uksi/2008/188/contents/made
Impact evaluation (methods and results)
There have been two recent evaluations conducted:
Evaluation of the delivery and uptake of the Carbon Emissions Reduction Target (Oct 2011) – this covers
how CERT has been delivered and take up by households focusing on the uptake of heating and
insulation measures.
Last update: June 2014
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48208/3339-evaluation-ofthe-delivery-and-uptake-of-the-carbo.pdf
Evaluation synthesis of energy supplier obligation policies (Oct 2011) – this has a wider scope
considering delivery and take-up under CERT and the Community Energy Savings Programme (CESP)
with lessons for future policy.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48209/3340-evaluationsynthesis-of-energy-supplier-obligation.pdf
The final process and impact evaluation of CERT will be published in early 2014.
Methods
Every two years an assessment is made on progress over the previous target period. The energy savings
from Supplier Obligations are calculated according to supplementary Green Book policy appraisal
guidelines available at http://www.hm-treasury.gov.uk/data_greenbook_index.htm
Results
The DECC Updated energy and emissions projections 2013 (published in Sep 2013) provides estimates of
the impact of Supplier Obligation (CERT +20% and CERT extension):
1995
Ex-post evaluation
2010
2016
2020
CO 2 (kt)
Energy (PJ)
1995
Ex-ante evaluation
2010
2016
2020
CO 2 (kt)
522
1769
1700
Energy (PJ)
7
26
25
* Energy figures converted from carbon by using same energy/carbon ratio as in progress report on UK
NEEAP 2007 (published in July 2011) for Supplier Obligations
Note that this includes all supplier obligations since 2002 and there are no separate figures for CERT but
a significant fraction of the overall savings can be attributed to CERT given its scale. The NEEAP 2014
only provides savings for the time after 2010 and does not include the savings resulting from actions
implemented in 2008-2009.
The final evaluation of CERT will be published later this year and is likely to contain more precise
estimates of the carbon and energy savings.
Measure Impact Level
 low
 medium
 high
Definition of the qualitative impact level
− The categories (low, medium, high) are linked to the aggregate electricity or energy consumption of the respective sector
−
−
−
−
(households, transport, industry or tertiary), and not to a particular end-use, because the aggregation of the impacts is
easier.
The following limits (in each case in % of the overall final energy or electricity consumption of the sector; in case of fuel
substitution and CHP: of primary energy consumption) are defined for the three impact levels:
low impact: <0.1%
medium impact: 0.1-<0.5%
high impact: ≥0.5%)
Interaction of measures
Last update: June 2014
The Carbon Emissions Reduction Target (CERT) was the name for the obligation previously referred to
as the Energy Efficiency Commitment in the 2007 UK Energy Efficiency Action.
CERT supported similar measures as CESP (see UK29_Supplier Obligations - Community Energy
Savings Programme (CESP)) and Warm Front and equivalent programmes in the devolved areas (see
UK5_Warm Front and Fuel Poverty Programmes). CERT also overlapped with fiscal policy in the form
of the reduced rate of VAT on some energy saving materials (see UK3_VAT).
The CERT had a range of social benefits, supporting Local Authority objectives under Decent Homes and
the Home Energy Conservation Act (UK4_ Home Energy Conservation Act).
Historical data
Carbon Emission Reduction Target (CERT) for energy suppliers for the period 2008–2011 replaced the
Energy Efficiency Commitment (EEC), which under two phases ran from 2002-2008. It had the same
underlying framework and purpose as the EEC, but with an expanded range of measures, including
microgeneration, and also allowed more scope for innovation and competition among companies to
encourage consumers to reduce their energy demand.
The Energy Efficiency Commitment (EEC) replaced the Energy Efficiency Standards of Performance
(EESoP), which ran from 1994 until 2002. The scheme adopted a similar approach to EESoP, although
some features have been changed and as such the schemes are not directly comparable.
Methods
In the 2007 UK Energy Efficiency Plan, energy and carbon savings were split between the Energy
Efficiency Commitment Phase 1 (EEC 1), Efficiency Commitment Phase (EEC 2), Carbon Emission
Reduction Target (CERT) and the Supplier Obligation. The post 2011 Supplier Obligation was expected
to deliver annual savings of 3-4 MtC by the end of the next decade. The 2007 UK Energy Efficiency Plan
methods were set out in Annex A (links below).
Results (historic)
Ex-post evaluation
direct CO 2 (kt)
Energy (TJ)
(Fuels/Electricity)
Ex-ante evaluation
Total CO 2
1995
2000
2020
1995
2000
2020
EEC 1: 0.3 MtC/year
EEC 2: 0.5 MtC/year
CERT 2008-2011: 1.1 MtC/year
Suppliers Obligation: Post 2011 34MtC/year
Energy (TJ)
(Fuels/Electricity)
Source: 2007 UK Energy Efficiency Plan
Notes: The Suppliers Obligation estimated savings were for post 2011 and it should deliver these by the
end of the next decade; CO 2 savings are for direct emissions from fuel combustion in the final sectors.
References
2014 UK National Energy Efficiency Action Plan
http://ec.europa.eu/energy/efficiency/eed/doc/neep/2014_neeap_united-kingdom_en.pdf
2007 UK Energy Efficiency Action Plan
Last update: June 2014
http://ec.europa.eu/energy/demand/legislation/doc/neeap/uk_en.pdf
Annual carbon and energy savings estimate from:
Updated energy and emissions projections 2013
https://www.gov.uk/government/publications/updated-energy-and-emissions-projections-2013
UK Report on Articles 4 and 14 of the EU End-use Efficiency and Energy Services Directive (ESD)
Update on progress against the 2007 UK National Energy Efficiency Action Plan (July 2011)
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48144/2289-uk-report-euenduse-esd.pdf
Green Book policy appraisal guidelines http://www.hm-treasury.gov.uk/data_greenbook_index.htm
Carbon Emission Reduction Target (CERT) (Ofgem)
http://www.ofgem.gov.uk/Sustainability/Environment/EnergyEff/CU/Pages/CU.aspx
Evaluation of the delivery and uptake of the Carbon Emissions Reduction Target (Oct 2011) – this covers
how CERT has been delivered and take up by households focusing on the uptake of heating and
insulation measures.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48208/3339-evaluation-ofthe-delivery-and-uptake-of-the-carbo.pdf
Evaluation synthesis of energy supplier obligation policies (Oct 2011) – this has a wider scope
considering delivery and take-up under CERT and the Community Energy Savings Programme (CESP)
with lessons for future policy.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48209/3340-evaluationsynthesis-of-energy-supplier-obligation.pdf
The Electricity and Gas (Carbon Emissions Reduction) (Amendment) Order 2010
http://www.legislation.gov.uk/uksi/2010/1958/contents/made
The Electricity and Gas (Carbon Emissions Reduction) (Amendment) Order 2009
http://www.legislation.gov.uk/uksi/2009/1904/contents/made
The Electricity and Gas (Carbon Emissions Reduction) Order 2008
http://www.legislation.gov.uk/uksi/2008/188/contents/made