In the Energy White Paper, the Government set out a series of measures, which can significantly reduce energy use in homes and business by 2020 (7.0-11.7 MtC by 2020).
Measures being introduced in the domestic sector include a continued obligation on energy suppliers to reduce home energy use, new building regulations, the energy performance certificates to make energy use more important when buying and selling homes and working with the EU to improve product standards, for example by phasing out inefficient light bulbs by 2011.
In the business sector, the new carbon reduction commitment will mean that for major business and the public sector energy use receives greater attention to encourage companies to take more action on energy efficiency.
The EU Emissions Trading Scheme will continue to provide an incentive for the largest energy users to use energy efficiently.
In addition, the energy industry regulator, Ofgem, has an objective to promote efficiency in electrical distribution and transmission. They do this by providing incentives to system operators in the relevant price controls.