Isra-Mart srl:Gas demand falls as insulation rates rise

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Isra-Mart srl news:

The average household is consuming 22 per cent less natural gas than four years ago as a direct result of the rollout of energy efficiency measures, according to a new study by British Gas.

The utility yesterday published its Home Energy Report 2011, which was conducted by the Centre for Economics and Business Research (Cebr) and based on 40 million British Gas meter readings between 2006 to 2010.

It found customers who adopted energy efficiency measures, such as cavity wall or loft insulation and A-rated boilers, saved £322 a year on their energy bills and saw a 44 per cent fall in their gas use between 2006 and 2010.

On average, cavity wall insulation cut gas consumption by 18.3 per cent, energy efficient boilers by 18 per cent, and loft insulation by 13.8 per cent.

It also found that if all British Gas households adopt all the efficiency measures open to them, they could save up to £3.6bn over the next five years, equivalent to around £714m per year.

Jonathan Thurlwell, Cebr director of competition economics, said the report represented nearly a fifth of the UK national market and is the largest independent analysis of domestic natural gas consumption.

"Energy efficiency measures are the primary driver of the average annual decline in underlying gas consumption," he said. "The message is clear: in a global environment of rising commodity prices, the most effective way for households to reduce costs is through basic energy efficiency measures."

The report forecasts that natural gas consumption for British Gas customers will continue to fall over the next five years, driven mainly by energy efficiency measures, but also the Carbon Energy Reduction Target, the Green Deal and the mandated rollout of smart meters across the UK.

In response to the study, British Gas has now launched a £80m investment programme, offering 200,000 of its dual fuel customers free cavity wall or loft insulation.