Investigation into ScottishPower's compliance with Article 14(1) of the Electricity and Gas (Community Energy Saving Programme) Order 2009
Investigation
- Open
- Decision proposed
- Closed
- Publication date
- Closed date
- Scheme name
- CESP
- Decision
The Authority has decided to impose a financial penalty on ScottishPower following an investigation into the company’s compliance with its obligations under Article 14(1) of the Electricity and Gas (Community Energy Saving Programme) Order 2009.
The Community Energy Saving Programme ("CESP") was a policy, set down in legislation, designed to improve domestic energy efficiency standards in the most deprived geographical areas across Great Britain. The relevant legislation was the Electricity and Gas (Community Energy Saving Programme) Order 2009 ("CESP Order"). Under Article 14(1) of the CESP Order, generators and suppliers had to achieve their carbon emissions reduction obligation by promoting qualifying actions to domestic energy users in low income areas.
The Authority found that ScottishPower breached Article 14(1) of the CESP Order having failed to achieve its carbon emissions reduction obligations by promoting qualifying actions to domestic energy users by 31 December 2012. ScottishPower as a whole delivered 69.96% of its obligation and had a shortfall of 554,373 tCO2.
The particular ScottishPower licensees which failed to meet their obligations were ScottishPower Energy Retail Limited and ScottishPower Generation Limited.
The Authority noted that ScottishPower undertook mitigation activity by April 2013 to mitigate its carbon saving shortfall in full. ScottishPower also over-delivered which resulted in additional households receiving measures. The Authority had regard to this in setting the final level of penalty.
A payment of £2.4 million (less a nominal £1 penalty on each of the ScottishPower licensees) will be made by ScottishPower to the ScottishPower Energy People Trust which will fund projects with the aim of pursuing the following objectives:
• promotion of carbon emissions reduction in domestic homes;
• the promotion of energy efficiency in domestic homes; or
• fuel poverty.
A financial penalty of £1 by each of the ScottishPower licensees is to be made by 17 April 2015.