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CERT: Priority Group Flexibility Option
Emily FlattEnergy Efficiency Manager, Ofgem
4th September 2007
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Why do we need the PG flexibility option?
• Increases options for suppliers to reach their CERT Priority Group obligations
• Attempts to targets a portion of PG activity to the most fuel poor in this group
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What is it?
• The transfer of a capped percentage of a suppliers target from PG to non PG in return for undertaking additional fuel poverty activity (details coming later)
• Extent of fuel poverty action determined by notional cost saving of transferring activity from PG to non PG
• Translation factor applied to convert the carbon transferred into number of fuel poverty measures
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Eligible Fuel Poverty measures
Solid wall insulation
Biomass boilers (under consideration)
Ground source heat pumps
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Eligible Fuel Poverty recipients
Recipients
A subgroup of the PG attempting to identify the fuel poor
These are:
• Not in social housing ie home owners
• Off the gas grid
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Using the mechanism
• Proposed that suppliers apply as a normal scheme, on application pro forma
• Applications will include: (I will go into this in more detail later with a worked example)
• % reduction sought
• Carbon equivalent of this
• Which fuel poverty measures will be used
• Approval will be granted if all the required info is provided and is correct.
• (Any Qs at this point)
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A word about terminology…
• ‘relevant reduction’ = carbon equivalent of the % reduction in the PG target
• ‘specified reduction’ = carbon savings from fuel poverty measures (determined by translation factor)
THESE WILL HAVE THE SAME VALUE!
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Worked example of application (1)
• Supplier x has a carbon obligation of 10,000 tC
• PG obligation of 4,000 tC
• Wants to switch 5% of their obligation from the PG to the non PG
• 5% = 500 tC
• New PG obligation would be 3,500 tC
• New non PG obligation would be 6,500 tC
• Overall obligation remains 10,000 tC
• 500tC to be achieved through fuel poverty measures
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Worked example of application (2)
The application must include:
• % reduction of overall obligation = 5%
• Relevant reduction = 500tC
• Specified reduction = 500tC
• Which fuel poverty measures will be used = eg solid wall insulation
• How overall obligation will be achieved = brief written summary of supplier’s other schemes
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To determine the number of fuel poverty measures needed:
Specified reduction = number of fuel poverty measures neededtranslation factor eg 50
Specified reduction = 500tC
500 = 10 fuel poverty measures needed 50
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Supplier x obligation illustrated
0 2,000 4,000 6,000 8,000 10,000 12,000
With PG flex.
Initial obligation
tC
non- PG
PG
Plus fuel poverty activity
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