DRAX Power is to be investigated by Ofgem for failing to meet its energy efficiency targets.
Drax is one of six firms to be investigated by the government regulator for failing one or more of its targets, along with British Gas, GDF Suez / IPM, Intergen, Scottish Power and SSE.
Eggborough Power Station met all its efficiency targets.
The results were revealed in an Ofgem report on energy saving schemes including Community Energy Saving Programme (CESP) and the Carbon Emissions Reduction Target (CERT), which are part of the Government's aims to reduce the UK’s greenhouse gas emissions by 80 per cent by 2050.
Under the CESP, certain gas and electricity suppliers and certain electricity generators were required to deliver energy saving measures to domestic energy users in specified low income areas of Great Britain.
It required the companies to deliver measures including replacing boilers and heating systems and installing insulation and renewable energy systems of which Drax achieved just 37.1 per cent of its target.
Energy companies were required to achieve an overall target of 19.25 million lifetime tonnes of carbon dioxide by December 31, 2012, but actually achieved almost 85 per cent of the overall target.
In a statement Drax said it outsourced the service because it had no expertise in delivering energy efficiency schemes to consumers. But its chosen provider failed to deliver its obligation, it said.
"We entered into further agreements with additional third parties in order to rectify this shortfall so far as was practicable, but for various reasons we were not able to fully comply by the end of the obligation period. We are assisting Ofgem in its investigation but cannot say more at this stage.”
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."
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