Does carbon trading make a difference?
September 8, 2008 6:16 AM Subscribe
Why should energy supply companies bother making people houses greener when they are essentially reducing demand for their good? (quite a UK based question)
posted by henry.oswald to Work & Money (11 answers total) 2 users marked this as a favorite
I've been looking at carbon credits, the EU Emissions trading scheme and CERTs and have a good handle on it now but the main question is why should the energy suppliers (British gas, powergen etc) bother?
Electricity suppliers such as British gas are obliged to help improve the energy efficiency of peoples homes, from a cert certified process they receive carbon credits. However from a bit of basic maths it seem silly for a business to reduce the demand for their good.
If a house was insulated and then needed 10% less gas to heat the home, on a £800 yearly bill the energy supplier would lose £80 a year. A house around that size probably produces 4 tonnes of carbon a year - 10% of that is worth about £8 in carbon credits.
£80 - £8 = £72 worse of?
So why should British gas, eon, powergen etc bother to really improve peoples energy efficiency?