Firms fined over energy saving miss

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Two power generation firms are to pay penalties totalling £39m following their failure to deliver energy saving measures to low-income households.

Regulator Ofgem said it has secured a record £28m payment from North Yorkshire-based Drax Power for not meeting targets under the government’s Community Energy Saving Programme (CESP).

Under the scheme, generators as well as energy suppliers had to deliver energy saving measures to households in low-income areas by the end of December 2012.

Drax Power delivered just 37.1 per cent of its carbon emissions reduction target, leading to several thousand households in some of the most deprived areas in Britain missing out on energy saving measures which would have helped lower bills.

Ofgem also handed a penalty of £11m to generator InterGen after it delivered 61.2 per cent of its required energy saving measures to around 2,200 households by the end of May 2013.