By Sarah Kent
LONDON--The U.K.'s energy regulator is launching an
investigation into six energy companies for failing to meet energy
efficiency targets set by the government, the Office of Gas and
Electricity Markets, or Ofgem, said Wednesday.
British Gas, Drax Group PLC (DRX.LN), GDF Suez/IPM, Intergen,
Scottish Power and SSE (SSE.LN) will all face investigations for
failing to meet one or more of their energy targets.
The companies could face fines of up to 10% of their annual
turnovers if their failings are found to have harmed consumers,
although Ofgem will take into account additional energy saving
measures installed after the deadline of December 2012 as
mitigating factors.
Several of the energy companies said they had taken action since
the end of last year to ensure they met their efficiency
targets.
Scottish Power said it over-delivered on some of the
government's requirements within the allotted time-frame and had
met all of its targets by the end of April this year. SSE said it
has contracts in place which when complete will ensure it delivers
its obligated carbon savings.
British Gas, GDF Suez/IPM and Intergen were unable to comment
while Drax did not respond to requests for comment.
"Ofgem's role is to ensure that consumers do not lose out by the
failure of firms to deliver all the help required or are not
disadvantaged by late delivery," said Sarah Harrison, Ofgem's
senior partner in charge of enforcement.
Under the Carbon Emissions Reduction Target (CERT) and Community
Energy Saving Programme (CESP) companies were required to carry out
energy saving measures, including improving insulation and
replacing old, inefficient boilers.
Ofgem said that energy companies successfully achieved 99% of
their targets and the schemes saved 312 million lifetime tons of
carbon dioxide emissions.
EDF Energy (EDF.FR), Eggborough power, E.on and RWE npower
(RWE.XE) all achieved their energy efficiency targets.
Write to Sarah Kent at sarah.kent@dowjones.com