CERT: Priority Group
Flexibility Option
Emily Flatt
Energy Efficiency Manager, Ofgem
4th September 2007
Why do we need the PG flexibility option?
• Increases options for suppliers to reach their CERT Priority Group
obligations
• Attempts to targets a portion of PG activity to the most fuel poor
in this group
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What is it?
• The transfer of a capped percentage of a suppliers target from PG
to non PG in return for undertaking additional fuel poverty activity
(details coming later)
• Extent of fuel poverty action determined by notional cost saving of
transferring activity from PG to non PG
• Translation factor applied to convert the carbon transferred into
number of fuel poverty measures
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Eligible Fuel Poverty measures
Solid wall insulation
Ground source heat
pumps
Biomass boilers (under
consideration)
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Eligible Fuel Poverty recipients
Recipients
A subgroup of the PG attempting to identify the fuel poor
These are:
• Not in social housing ie home owners
• Off the gas grid
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Using the mechanism
•
Proposed that suppliers apply as a normal scheme, on application pro
forma
•
Applications will include: (I will go into this in more detail later with a
worked example)
•
% reduction sought
•
Carbon equivalent of this
•
Which fuel poverty measures will be used
•
Approval will be granted if all the required info is provided and is correct.
•
(Any Qs at this point)
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A word about terminology…
• ‘relevant reduction’ = carbon equivalent of the % reduction in the
PG target
• ‘specified reduction’ = carbon savings from fuel poverty measures
(determined by translation factor)
THESE WILL HAVE THE SAME VALUE!
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Worked example of application (1)
• Supplier x has a carbon obligation of 10,000 tC
• PG obligation of 4,000 tC
• Wants to switch 5% of their obligation from the PG to the non PG
• 5% = 500 tC
• New PG obligation would be 3,500 tC
• New non PG obligation would be 6,500 tC
• Overall obligation remains 10,000 tC
• 500tC to be achieved through fuel poverty measures
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Worked example of application (2)
The application must include:
• % reduction of overall obligation = 5%
• Relevant reduction = 500tC
• Specified reduction = 500tC
• Which fuel poverty measures will be used = eg solid wall
insulation
• How overall obligation will be achieved = brief written summary of
supplier’s other schemes
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To determine the number of fuel poverty
measures needed:
Specified reduction
translation factor eg 50
= number of fuel poverty measures needed
Specified reduction = 500tC
500
50
= 10 fuel poverty measures needed
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Supplier x obligation illustrated
non-PG
Initial obligation
PG
Plus fuel
poverty
activity
With PG flex.
0
2,000
4,000
6,000
8,000
10,000
12,000
tC
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