Ofgem has today secured a £450k payment from the generator owner GDF SUEZ/IPM for failing to meet its targets under the Government’s Community Energy Savings Programme (CESP). GDF SUEZ/IPM is to make a payment to Age UK in order to support the charity’s community energy programmes.
Under CESP, generators as well as energy suppliers were obligated to deliver energy saving measures to households in low income areas by the end of December 2012. The scheme was designed to help lower carbon emissions and lower bills for households through the installation of energy efficiency measures. GDF SUEZ/IPM delivered 38.6% of its reduced* target on time. GDF SUEZ/ IPM’s failure to meet its reduced target meant around 1,000 households missed out on energy efficiency measures during a cold winter.
Ofgem found that the risk of non-delivery would have been reduced with a more proactive approach to project management and supervision by GDF SUEZ/IPM.
However, following the missed deadline, GDF SUEZ/IPM quickly installed energy efficiency measures to a volume slightly above its CESP shortfall, by March 2013. GDF SUEZ/IPM’s cooperation also enabled a quicker resolution to the investigation and without either of these factors the level of penalty would have been higher.
Sarah Harrison, senior partner in charge of enforcement said: “Failure to deliver obligations on time has a detrimental impact on consumers. GDF SUEZ/IPM’s late delivery meant low income households missed out on energy saving measures during the early months of 2013, where consumers experienced a particularly cold winter. Our fine today reflects these factors but also the prompt action taken by GDF SUEZ/IPM to make up its shortfall.”
For more information and news visit the Ofgem Website.