The Energy Efficiency Commitment overall progress and emerging issues Charles Hargreaves 4 September 2007

2 Presentation outline The EEC2 target Supplier progress and activity Targeting the Priority Group Key issues moving forward

3 The Energy Efficiency Commitment Suppliers were set an overall target of 130 TWh At least 50% of which has to be met in the low income Priority Group Suppliers carried forward 35 TWh of energy savings from EEC1 into EEC2, just over half of which were in the Priority Group

4 Supplier progress Suppliers had made good progress towards meeting their targets by the end of the second year of the EEC2 Two suppliers had achieved enough energy savings to have complied with their obligations By the end of the second year year, suppliers had met nearly 95% of the overall target

5 Supplier progress

6 Activity to date Energy savings achieved to date have been dominated by the delivery of insulation measures However, large numbers of other measures have been promoted, including nearly 45 million low energy lamps Some suppliers have been innovative and have brought new products into the EEC

7 CFL delivery

8 Activity to the end of the second year of EEC2

9 Activity to the end of the second year, including carryover

10 Meeting the Priority Group target Suppliers are on track to meet at least half of their energy saving targets in the Priority Group However, in EEC2 so far, more of the activity has been targeted on the non-Priority Group Priority Group activity has been heavily dominated by the delivery of insulation measures

11 Energy savings achieved by consumer type

12 Innovative action Suppliers are promoting a range of innovative products These include: –Heating measures such as ground source pumps and small scale CHP –Consumer electronics such as integrated digital appliances –Very efficient cold appliances

13 Progress towards meeting the Priority Group target

14 Progress towards meeting the non-Priority Group target

15 Progress towards meeting the overall target

16 Key points Suppliers have made good progress towards meeting their targets including meeting at least 50% in the Priority Group At the end of the ninth quarter of EEC2, of the 130TWh target only 5 TWh is remaining Given current trends it seems all suppliers will have energy savings to carry forward to CERT

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