Centrica views

14:32 Gearóid Lane replies

Hi Barbara

The way Britain has structured the Clean Energy Cashback (feed-in tariff) is different to some other countries. The customer will be rewarded for ALL the renewable energy that's produced, rather than just what's exported. But certainly for some of the installations, at certain times of day, energy will be exported to the grid. Our part-funding of the Energy Saving Trust field trials, and the trials we do ourselves, help us to get comfort in the technologies we install. We won't install anything that we're not confident will work – even a wind turbine fitted to a chimney pot!!

Best
Gearoid

14:26 Gearóid Lane replies

Hi Aymeric,

Any legally binding targets would be on respective governments. It's then up to the governments how they achieve these targets and they're likely to use both regulation and incentives.

In the UK, we already have legally binding targets on carbon emissions and the government uses schemes including the Renewables Obligation, and the Carbon Emission Reduction Target (CERT) to achieve these goals. These regulations give a legal framework for businesses to reduce their emissions.

I think it is very unlikely that there would be a law to force individuals to invest in insulation but an agreement at Copenhagen may lay the groundwork for better incentives to encourage take up of energy efficiency measures. We're very supportive of anything that provides incentives for using low-carbon products and services.

Hope this helps....Gearoid

14:21 Gearóid Lane replies

Thomas,

I suppose that Every Little Helps....!

Seriously though, we totally embrace the competitive market as a means of providing the best quality to customers at the cheapest price. We therefore would welcome Tesco or any other retailer into the market. Of course installing microgeneration is about much more than popping down to the supermarket, taking a panel away in your trolley and collecting your clubcard points. It's about understanding how the home works, how the household uses energy, what technology will work best for the customer, installing it and then maintaining it. That's where British Gas comes in.

The household needs to know their supplier is in it for the long haul. We've been installing and maintaining energy systems in homes and businesses for the last fifty years, and you can trust that we'll still be looking after homes in fifty years time.

Best wishes....Gearoid

14:17 Gearóid Lane replies

Paul,

I think I've covered this in earlier responses. Both the Feed In Tariff (Clean Energy Cashback) and Renewable Heat Incentive should have a hugely important influence on market development. But we need to get the level and the details right. We're looking forward to the publication of the final proposed levels for tariffs in January.

Regards....Gearoid

14:14 Gearóid Lane replies

Nelson,

Naturally British Gas is keen to influence the energy debate. As we tackle the difficult trilemma of energy security, affordability and carbon emissions reduction, we believe that the expertise of Centrica and British Gas will help us to find the right answers.

We are proactive in our approach to putting forward solutions in the low carbon space. Increasingly our influence extends to North America, where Direct Energy (including your good self!) can help North American policymakers through the policy maze, including providing the benefit of the experiences that we've gained in Europe.

Hope all is well....Gearoid

14:08 Gearóid Lane replies

Hi Andrew,

Yes we think that the Pay As You Save approach has huge potential. For a householder to get access to technologies without any upfront cost, paid for over many years through the energy saved is a great proposition. We're investigating all of the different forms of support mechanism.

As you mention, the Department for Energy and Climate Change and the Energy Saving Trust announced funding for Pay As You Save trials last week. I'm happy to say that we were announced as one of the successful applicants, and the only energy utility that was successful. We've been granted £1 million to trial exactly the approach you described, paying for equipment over a long period via energy savings through the energy bill.

Best...Gearoid

14:04 Gearóid Lane replies

Anna,

Yes there are lots of things that need to change to promote investment, such as overhaul of the planning regime, cutting red tape from our financial support mechanisms, getting the Clean Energy Cashback and Renewable Heat Incentive in place, and changing some of the “right to object” rules in energy supply to promote longer-term energy services. However, we shouldn't just sit back and wait until everything is perfect. British Gas has been leading the way both at the grid scale, investing in offshore wind farms (we're the third biggest offshore wind farm operator in the world) and at a microgeneration scale, investing in technologies such as Ceres power and installing solar panels through Solar Technologies.

We've covered the challenges and opportunities in the low carbon arena in detail in our response to the Carbon Disclosure Project - http://www.centrica.com/files/pdf/responsibility/CDP_2009.pdf

The Carbon Disclosure Project was so impressed by our carbon policies that we've been rated the top performing utility in Europe (second globally)!

Thanks for your questions....Gearoid

13:54 Gearóid Lane replies

Brian, loads of great questions!

There's no doubt that most microgeneration technologies have a long payback period for the customer. However, Britain rightly provides financial support to larger scale renewable facilities such as wind farms on the basis that they reduce carbon emissions, promote diversity and security of supply, help bring new technologies down the “cost curve” and create jobs and technology advantage for Britain.

We're now about to provide financial support to low carbon and renewable electrical microgeneration technologies through the introduction of the “Clean Energy Cashback” (feed-in tariff) from April 1st 2010 and for renewable heat technologies a year later. We think these support mechanisms have the potential to completely transform the market. For example, the introduction of feed-in tariffs in Germany and Spain led to several million installations. However, we have to get the support levels right – the first proposal from Government to set the tariffs at a level that gives a 4-6% rate of return is too low, and we're hopeful the tariff levels will be higher once the final details are published in January.

As to whether our customers will buy microgeneration from us, in short “yes”. We have the unique combination of a major energy supply business and a huge engineering workforce that is trusted to keep Britain's homes and businesses working. Our engineers are trusted to give advice – research shows that we are far more trusted than any other company or organisation to advise households and to install energy saving and microgeneration equipment in homes.

Energy use in homes and businesses is falling, due in no small part to the more than 100 million energy saving measures we have provided (including more than 1.5 million home insulations). But over the coming years we believe that customers will increasingly demand an “energy service” rather than just energy – installing measures, maintaining equipment, balancing the demand and production of energy in the home and business, and financing. We are uniquely positioned to provide this comprehensive energy service to our customers.

Regards... Gearoid

13:49 Gearóid Lane replies

Joe,

We have a range huge of technology trials underway some even using our own employees as guinea pigs to see if the technology actually works. These range from some very simple measures such as installing secondary glazing in the actual office I sit in Staines to microCHP boilers (generating heat AND electricity) in 50 engineers homes to a feasibility study for a micro hydro generation system using the river Soar at our Leicester office. I've got an Air Source Heat Pump on trial in my own home.

Many of the larger scale trials are funded by British Gas in conjunction with the Energy Saving Trust and the results of these are freely available. An example of one of the latest funded trials was to assess the performance of small scale wind turbines - it found that the effectiveness hugely depends on location.

What the trials do show however in my mind is that there is not one simple answer to your question as the microgen solution has to fit the customers' needs, be able to fit with the properties requirements and the existing heating system need careful consideration.

13:39 Gearóid Lane replies

Hi Hannah.

Of course you're right - we're going to need to take huge steps forward both in behaviour and technology to meet our stretching goals for carbon emissions reduction. And of course the way we use technologies will also have a huge impact on their effectiveness.

But I think it is important to distinguish between the two so that we deal with them independently of each other and get the most benefits out of both. For example, it is far more effective to show people how to change their behaviours so they can be more energy efficient and then to introduce them to new technology – otherwise they will be saving in one place and losing through another. Blurring the lines will ultimately mean that we miss out on the opportunity to save as much CO2 as we can together.

Education and leadership are also needed to get the behaviour changes we need. For example, more than 2.4 million households have completed the British Gas Energy Savers Report, which provides both hints and tips on how to conserve energy in the home and details on which technologies will save you most money and will most reduce your carbon footprint.

Best wishes, Gearoid

13:31 Gearóid Lane replies

1) We believe that renewable and low carbon distributed generation (power produced within the distribution network) and microgeneration (power produced in homes and buildings) will have a huge role to play in the future. A range of technologies such as solar photovoltaic panels and domestic combined heat and power have huge potential. Production of renewable heat at a local level, for example from biomass, heat pumps and solar thermal panels, also has a huge role.

British Gas is already a leader in microgeneration. Our Solar Technologies business is one of the largest installers of solar panels, and through our interest in Econergy, we're leading in biomass. What's more, our 9,000 engineers are the trusted energy experts at the hearts of Britain's homes.

2) Through our interests in Econergy we're already leading in the design and installation of biomass heating systems in homes, hospitals and community heating networks. We're investigating the potential for biogas as a source of green natural gas for our customers.