UK energy firms need to 'pull the finger out,' insulate more homes

Britain’s “Big 6” energy companies will need to pick up the pace at which they help homeowners insulate their houses if they expect to meet targets set by the government last year.

New figures released today show UK’s largest energy firms need to “pull their finger out and get on with offering even more energy saving help to British households,” said Energy and Climate Change Secretary Chris Huhne. “The companies have made good progress to date and we want them to succeed, but they are going to have to accelerate their lagging rates if they’re each going to hit their targets by the end of the next year.”

While the number of insulation improvements to lofts and cavity walls over the past three months reached nearly 300,000, according to just-released statistics, UK energy firms have a long way to go before meeting the goal of improving 3.5 million homes by December 2012. So far, just 58 percent of British homes have adequate loft or cavity wall insulation.

Improved home insulation is part of the government’s requirement that energy companies cut their lifetime emissions of carbon dioxide by 293 milllion tons by December 2012. More air-tight structures can also save individual homeowners a considerable amount in gas and electricity bills — more than £100 (around $160) a year in some cases — something that’s increasingly important as energy prices continue to rise.

It’s also a goal to focus on now that summer is almost over and winter will soon be approaching, Huhne said. Qualifying homeowners can learn more about how to get free or discounted insulation by calling the Energy Saving Trust for advice, he added.

Since the insulation targets were set last year, Britain’s energy companies have been installing insulation at the rate of around 100,000 homes per month. To improve a total of 3.5 million homes by the end of next year, though, that rate will need to jump to around 200,000 per month.

The rate at which households most at risk of fuel poverty — the “Super Priority Group” — receive insulation will need to speed up even more:  from an average of around 5,000 installations per month to 18,000 per month.

Energy companies that don’t meet their carbon reduction targets by next year’s deadline risk being fined up to 10 percent of their global turnover (revenue) by Britain’s energy regulator, Ofgem.