Environmental Benefits

Existing Measures Already in Place to Tackle Climate Change

A description of the schemes already in place, which customers help to pay for, can be found below.

The Renewables Obligation

The Renewables Obligation places a requirement on energy suppliers to source a certain percentage of the electricity that they sell to customers from renewable sources. Energy suppliers receive a subsidy from customers to support this. In 2008, the cost to customers on their annual energy bill was about £10, but this will increase for each year that the Renewables Obligation is in place.

Carbon Emissions Reduction Target (CERT)

CERT is a Government policy setting the 6 main energy supply companies targets for reducing carbon emissions by delivering energy efficiency measures in people’s homes. In 2008, the cost to a customer using gas and electricity was about £38 on their annual bill. Over time CERT should help to reduce bills as homes become more energy efficient.

EU Emissions Trading Scheme (EU ETS)

The EU Emissions Trading Scheme puts a price on carbon dioxide emitted by power stations and other major industries. The cost is refelected in the wholesale price of electricity. Energy suppliers pass this cost on to customers. On an average annual bill the EU ETS cost around £31 in 2008.