Inaccurate CERT report costs E.ON £3m

10th July 2013


Related Topics

Related tags

  • Energy ,
  • Corporate fine ,
  • Management/saving

Author

IEMA

Leading energy provider E.ON has been fined £500,000 and ordered to pay customers £2.5 million after misreporting energy-saving measures to Ofgem

Under the now defunct CERT (carbon emissions reduction target) programme, UK energy suppliers were required to provide energy-efficiency measures to consumers to cut the sector’s CO2 output.

In meeting its CERT obligations in 2010, E.ON claimed it had distributed 3.4 million free energy-saving lightbulbs. However, an Ofgem investigation revealed the company’s figures were inaccurate, with the shortfall in bulbs equating to 1% of its total carbon reduction commitment.

According to the regulator, E.ON’s inadequate management systems resulted in it being unable to track how many bulbs had been distributed to customers and bulbs sold in Ireland mistakenly included in its CERT report.

Sarah Harrison, Ofgem’s senior partner in charge of enforcement, said: “This case leaves companies in no doubt that Ofgem takes reporting failures seriously. Accurate company reporting is essential to Ofgem’s effective administration of the government’s environmental schemes.”

Ofgem agreed a settlement with E.ON which will see the firm pay a £500,000 fine and discount 18,500 of its customers’ bills by £135 this winter. The firm has also already installed extra energy-saving measures to make up its shortfall in meeting its 2010 CERT obligations.

The regulator confirmed that the penalties, which total £3 million, would have been harsher, but for the fact that E.ON cooperated with its investigation and quickly took action to meet its energy-efficiency targets.

Tony Cocker, chief executive of E.ON UK, apologised for the error and acknowledged that the firm’s management processes should have been “more robust”.

“Ofgem has received board-level assurance that the necessary changes have been made,” he said.


Transform articles

Regulator publishes new code to tackle 'greenwashing'

The Competition and Markets Authority (CMA) has published a new 'Green Claims Code' to ensure businesses are not misleading consumers about their environmental credentials.

22nd September 2021

Read more

The UK government must develop regulation to stop the financial sector from providing billions of pounds to companies that threaten rainforests worldwide, WWF has said.

10th September 2021

Read more

Over two million hectares of Brazilian rainforest could be legally converted to supply the UK with soy under a new anti-deforestation law proposed by the government, the WWF has found.

26th August 2021

Read more

The Better Business Act would put responsibility to society and the environment on the same footing as responsibility to shareholders, explains Chris Turner

30th July 2021

Read more

In Elliott-Smith v Secretary of State for Business, Energy and Industrial Strategy, the claimant applied for judicial review of the legality of the defendants’ joint decision to create the UK Emissions Trading Scheme (UK ETS) as a substitute for UK participation in the EU Emissions Trading Scheme (EU ETS).

30th July 2021

Read more

Thames Water has been fined £4m after untreated sewage escaped from sewers below London into a park and a river.

30th July 2021

Read more

In R. (on the application of Hudson) v Windsor and Maidenhead RBC, the appellant appealed against a decision to uphold the local authority’s grant of planning permission for the construction of a holiday village at the Legoland Windsor Resort.

28th May 2021

Read more

Are voluntary commitments enough to make the private sector act on waste? David Burrows explores the issues

28th May 2021

Read more

Government announcements on infrastructure reveal a direction of travel but key details are still unknown, says Huw Morris

29th January 2021

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert