Beyond the Energy Price Guarantee. With or without?

Households with the highest energy consumption levels are least encouraged to make energy saving measures: A household in the top 5% 2 of the energy consumption distribution is estimated to save more than 7,500 kWh per year if the property is upgraded to its highest energy performance standards. [...] Background on Energy Performance Certificates (EPCs) The underlying data that is used in this report to model energy demand and energy savings takes advantage of the population of EPC data that is available for the UK. [...] The short-comings of the EPG The EPG is a major intervention in price-setting mechanisms in energy markets that is fiscally costly, disproportionately benefits the (very) well off, and at the same time erodes incentives to save energy both in the short and longer term. [...] Fact 4: The EPG weakens incentives to invest in energy saving measures The EPG, by lowering consumer prices relative to market prices is weakening the incentives both to temporarily save energy as well as to permanently lower energy consumption through energy efficiency upgrades. [...] The Sustainability Champion would receive a financial reward funded by the UK government that is at least a minimum lump sum with an incentive payment that is proportional to the energy savings or the energy replacement (e.g., in case of renewable energy installations) that is achieved via such a program.