eaga signs ground-breaking agreement with Scottish Power
Green support services company eaga has today announced a ground-breaking partnership with Scottish Power worth in excess of £200 million.
The energy giant has reached an agreement in principle to outsource its entire Carbon Emissions Reduction Target (CERT) obligations, which are set by Government, to Newcastle-based eaga.
It is the fist partnership of its type and confirms eaga’s position as the UK’s leading provider of household energy efficiency solutions, while significantly enhancing eaga’s outsourcing credentials.
All UK energy suppliers have regulatory obligations under CERT, requiring them to achieve lifetime reductions in UK household carbon emissions of more than 150 million tonnes over the next three years. The collective spend under CERT to 2011 is forecasted to reach almost £3bn.
eaga already has agreements under CERT with all six major energy companies, but this is the first time an agreement has been reached to manage and deliver a supplier’s entire commitment.
The agreement further underpins eaga’s organic growth and secures a strong future income stream in a key market place.
Under CERT at least 40% of the carbon savings must go to priority groups of low income and elderly consumers. They will benefit from free, or heavily discounted, energy improvements such as loft and cavity wall insulation. To reach as many households and property types as possible CERT will also look to offer additional technologies such as external wall insulation, renewable energy options and even water-saving measures.
John Clough MBE, eaga Chief Executive, said: “This ground-breaking partnership with Scottish Power clearly demonstrates our outcsourcing abilities and, as planned, utilises the strong organic growth platform we have built within eaga.
“We are uniquely placed in this market due to our nationwide delivery platform and detailed knowledge of the thermal efficiency of more than a quarter of the UK’s housing stock. The CERT targets facing energy suppliers over the next three years are double that of previous requirements. Our core skills are ideally suited to helping energy companies meet these obligations and we are delighted to be working with partners across the industry as volumes increase. With our strong organic growth platform in place, securing future revenues in this area leaves eaga well placed as we move forward.”
ENDS
Notes to Editors
- eaga plc is the UK’s largest residential energy efficiency provider. The company is a leader in the provision of innovative and sustainable services, products and solutions that address the environmental, social and energy efficiency objectives of Government and the private sector both nationally and internationally.
- Working in partnership with central and local government eaga is positioned at the heart of policy-making and front-end delivery of social and environmental improvement programmes. eaga operates across the UK and in the Republic of Ireland, India and Canada employing over 3,500 people.
- eaga was established in Newcastle in 1990 to lead government funded efforts to improve the living conditions of vulnerable people living in cold, damp and energy inefficient homes across England. Since its inception, eaga has made a positive difference to over 5 million disadvantaged households across the UK, by installing energy efficiency measures and central heating.
- eaga holds the contract to deliver the £1.5 billion Warm Front programme in England, the cornerstone of government's target to eliminate fuel poverty by installing energy efficiency measures in vulnerable homes by 2010. eaga also works with devolved nation governments to deliver similar schemes across the UK.
- As a co-owned business, eaga is one of only a handful of UK organisations where every employee with over a year’s service is entitled to a share in the success of the business. eaga’s commitment to co-ownership is an integral part of the values that define the ethos of the business and what it means to be an eaga employee.
- The Government has set targets for all local authorities to have all social rented homes meeting Decent Homes standards by 2010. This requires homes to be fit for habitation, in a reasonable state of repair, with reasonably modern facilities and services and a reasonable degree of thermal comfort.
- Since 2000, eaga has invested over £3 million in the independent eaga Partnership Charitable Trust which funds research into solutions to fuel poverty.
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