Defra has published an initial consultation on the next phase of the Energy Efficiency Commitment (EEC3) which will run from 2008 - 2011. Defra are seeking early views on the main elements of EEC prior to the formal consultation, which will be published in Spring 2007. The consultation is aimed at ensuring a smooth transition between EEC2 and EEC3 and to enabling a constructive discussion about the implications of the recent Climate Change and Sustaianble Energy Bill, the Priority Group and the role of trading.

The Climate Change and Sustainable Energy Bill, which recently received royal assent, provides the opportunity for Government to set carbon emissions reduction targets under EEC, rather than energy efficiency targets. This would mean that microgeneration measures and other measures aimed at reducing energy consumption, such as behavioural measures, could be included in EEC. Government are seeking views on the possibility of redefining EEC targets whilst maintaining the current methodology, or whether a new methodology would need to be developed.

In addition, Government are seeking views on the implications of directing different levels of energy savings to the priority group and the possibility of introducing a new mechanism within EEC to allow energy suppliers to pay a prescribed sum of money to a third party to undertake energy efficiency measures, and exempt them from part of their target in the priority group.

Government are also seeking views on the opportunities for trading energy/carbon savings made, and whether the current measure based obligation on suppliers could be changed to one with tradable targets.

To view the consultation document click here.

Responses should be submitted by Monday 23rd October 2006 to:

SEP6 - Partnerships Branch
Zone 3/G16
Defra
Ashdown House
123 Victoria Street
London SW1P 6DE
Email: eec2006consultation@defra.gsi.gov.uk