|Energy Efficiency Commitment, UK
The Energy Efficiency Commitment (EEC) is an obligation on gas and electricity suppliers that sets
mandatory targets for the promotion of higher energy efficiency in the residential sector. EEC is a
certificate-based framework mechanism that gives the option to suppliers to trade on a bilateral
basis their obligation. It follows on from the Energy Efficiency Standards of Performance (EESoP)
that ran from 1994 until 2002.
This report describes the evaluation of the period 2002-2005. The target was 62 TWh energy
savings over the three-year period between. This target was exceeded, and was achieved at a cost
at 20% less than anticipated. A mix of methods has been used to monitor and evaluate the savings
in the programme. This includes deemed estimates for the unitary energy savings and used without
correction factors for the energy suppliers’ proof of target achievement through counting of
participants/unitary actions, complemented by an ex-post evaluation mainly on correction factors
and other issues of interest for the government. Also, diffusion indicators have been used for
evaluating the market transformation effects. An ex-post evaluation was commissioned to an
independent consultant to report on: the achievement of the target; the costs and the social benefits;
the market transformation effect; other benefits such as the creation of networks. The target was
increased in order to take into account a predicted effect of free riders, and suppliers were required
to demonstrate clearly this additional component. The ex-post evaluation showed that the global
free-rider effect was ca. 21%, which is less than anticipated. Also a correction of 30% was made for
compensating for the increased comfort in insulation measures.
Pros: The approach shows the possibility of separating the proof of target attainment by the
obliged energy companies from the assessment of the “real” impacts for policy-making
purposes. The government also aims at making the deemed estimates for unitary annual
energy savings consistent between the evaluation of different policies and measures.
Cons: A potential problem in very dynamic end-use technology markets could be that usually the
deemed estimates are only updated every three years.
References and information sources