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Six of the UK's largest energy companies could soon face significant fines from Ofgem over their failure to meet targets imposed through the government's previous energy efficiency schemes.

Ofgem is in the final stages of investigations over the failure of a number of energy companies to meet binding targets set under the Community Energy Saving Programme (CESP) and the Carbon Emissions Reduction Target (CERT) scheme.

The two schemes, funded through a levy on energy bills, required large energy firms to improve the energy efficiency of households with CESP targeted at fuel poor homes and CERT offering subsidised insulation work more widely. Energy firms faced targets under the scheme that had to be met by the end of 2012, when the two schemes were replaced by the current Energy Company Obligation (ECO) scheme and Green Deal energy efficiency financing programme.

However, British Gas was accused of missing its CERT and CESP targets, while SSE, ScottishPower, GDF Suez, Intergen, and Drax were accused of missing CESP targets, prompting a series of investigations from Ofgem.

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