Commentary on Sections Carbon emissions reduction targets
35.Section 33BC of the Gas Act 1986 and Section 41A of the Electricity Act 1989 enable the Secretary of State, by order, to impose on each gas transporter and supplier, and each electricity distributor and supplier, an obligation to achieve energy efficiency targets (otherwise known as the Energy Efficiency Commitment). This is defined as a target for the promotion of improvements in energy efficiency.
36.Sections 15 and 16 alter these sections to enable the Secretary of State instead to impose on each gas transporter and supplier, and each electricity distributor and supplier, an obligation to achieve carbon emissions reduction targets. A carbon emissions reduction target is defined as a target for the promotion of measures for improving energy efficiency and, if provided by order: measures for increasing the amount of electricity generated, or heat produced, by microgeneration; any other measures specified in the order for increasing the amount of electricity generated or heat produced using low-emissions sources or technologies; and measures for reducing the consumption of energy. The new provisions will provide additional flexibility in the range of measures that can be employed to achieve a carbon emission reduction target.