Ofgem is to investigate six energy companies for failing to meet government targets on installing loft and cavity wall insulation, as well as other energy efficiency measures.
The energy regulator said that despite firms meeting 99 per cent of energy efficiency goals by the 2012 deadline, it would be investigating the missed 1 per cent.
Suppliers British Gas, Scottish and Southern Energy and Scottish Power, as well as smaller suppliers Draz, GDF Suez/IPM and Intergen are now facing investigations by the regulator.
The targets were set under two schemes launched by the Department of Energy and Climate Change in 2008 to get energy firms to reduce emissions and also to help the most vulnerable customers by insulating homes and replacing boilers to improve efficiency and save money on their bills.
More... Greedy energy firms accused of manipulating new daily charges to entice customers on to expensive deals Push for gas 'fracking' will promise of cheaper bills for those close to sites of controversial process Energy bills: Is it worth switching and which are the best deals? Do you want cheaper energy bills? Compare tariffsSuppliers and generators were asked to deliver the energy saving measures to consumers, with £54 added to annual household bills to pay for the schemes.
Ofgem said since then, more than 3.9 million lofts and 2.5 million cavity walls had been insulated,
All change: Secretary of State for Energy and Climate Change, Ed Davey, said he was disappointed that some companies has failed to meet obligations.while 150,000 vulnerable households received at least one energy efficiency measure.
Sarah Harrison, Ofgem's senior partner in charge of enforcement, said: ‘The fact that the industry has delivered 99 per cent of its government energy efficiency targets is to be welcomed.
‘However, Ofgem's role is to ensure that consumers do not lose out by the failure of firms to deliver all the help required or are not disadvantaged by late delivery.’
A spokesman at Ofgem added that the investigation would focus on the 'associated cost' the suppliers saved from missing the deadlines, along with how this has affected climate change mitigation.
Ofgem revealed that suppliers EDF Energy, E.ON, RWE npower and independent generator Eggborough power achieved all of their energy efficiency targets.
But of those that are being investigated, British Gas was found to have met less than two thirds - 62.4 per cent - of its targets under the Consumer Energy Saving Programme (CESP), while Scottish Power met 70 per cent and GDF Suez/IPM and Intergen hit only 38.6 per cent and 6.5 per cent respectively.
SSE, which was recently fined £10.5 million for mis-selling, achieved 90.9 per cent of the CESP target.
Energy and Climate Change Secretary Ed Davey said: ‘I am disappointed that under the old schemes, some companies failed to meet their obligations. Ofgem will be conducting a thorough investigation and will take any necessary enforcement action.
‘We are already acting through the Energy Bill to give Ofgem the teeth it needs in future to get compensation to those directly affected.'
Nerves: The quarterly survey by the Department for Energy and Climate reveals growing anxiety about energy bills in the last yearA government survey by the Department for Energy and Climate Change today revealed that six out of ten people are worried about spiralling energy bills, far eclipsing the number concerned about climate change.
Despite ministers’ efforts to convince the public of the need for costly ‘green’ energy projects, just one person in 20 said climate change was Britain’s biggest challenge.
Unemployment was top of the list, at 37 per cent, followed by the NHS, inflation and rising prices, law and order, education, tax, energy supply, climate change and national security. Only 17 per cent put climate change in their top three challenges, according to interviews with 2,500 people.
