http://www.energyefficiencynews.com/articles/i/5590/?cid=3

Alongside the Energy Bill published today, the UK government is also laying out proposals to radically improve the country's energy efficiency.

Cutting electricity demand by just 10% - equivalent to the output from five power stations - could save around £4 billion in 2030 and cut carbon emissions by 4.5 megatonnes.

Reducing electricity use in homes, businesses and industry not only lowers bills in the immediate term, but also lessens the need for new - and costly - generating capacity.

The government already has a number of schemes in place like the Green Deal and the Energy Company Obligation, which requires energy suppliers to help their domestic customers cut carbon emissions, but wants to go further, says Energy and Climate Change Minister Greg Barker.

"We have schemes already in place but there are more avenues to be explored and that's what these ambitious proposals, a first for the UK, are designed to do," he says.

The ambitious, economy-wide proposals, which are based on the government's strategy published earlier this month, could see financial incentives like premium payments for each kWh saved through measures like efficient lighting and for purchasing new energy efficient equipment.

Complementing the Energy Company Obligation, under, the government wants to consider an electricity demand reduction target in the non-domestic sector.

Demand reduction could also feature in the capacity market, which the government is looking to establish as part of its electricity market reform laid out in the Energy Bill.

And non-financial incentives like better energy efficiency information, labelling on products and a 'hub' for information for the industrial sector are also up for discussion.

"The Coalition Government is absolutely determined to help cut energy bills for consumers, reduce costs for businesses and bring down our emissions," said Energy Secretary Ed Davey in a statement. "In a world of rising gas prices we must power our homes and businesses in a much more efficient way."

The electricity demand reduction consultation document will be available from this morning for consultation.