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Drax Group picks eaga to provide energy saving services under UK govt programme

Drax power station operator Drax Power Limited (AIM: DRX) and eaga (AIM: EAGA) announced an exclusive three-year agreement for the outsourced delivery of the power generator’s entire Community Energy Savings Programme (CESP) commitment.

The partnership is expected to deliver funding for residential energy efficiency improvement programmes in  communities across the UK. The two companies will develop community-based partnerships through matched funding programmes with local authorities and residential social landlords that will promote energy efficiency.

Eaga is also sole outsourcing partner managing ScottishPower's Carbon Emission Reduction Target (CERT).

CESP is a government initiative requiring the UK power generators to fund the installation of energy efficiency measures for households in low-income communities. Spending on CESP is expected to be worth £350 million to the end of 2012. The programme aims to deliver C02 savings, generate savings on energy bills and foster engagement at a community level.

CERT is the third three-year phase of a domestic energy supplier obligation that requires all domestic energy suppliers with a customer base in excess of 50,000 customers to make savings in the amount of CO2 emitted by householders.

“This is one of the first examples of CESP being put into practice and Drax is taking a highly pro-active approach...securing this contract is a key element of our strategy to deliver into the CESP market,” said eaga chief executive Drew Johnson.

Disclosure: The author holds no positions in the company