Where to place the saving obligation: Energy end-users or suppliers?

Obligations to save energy differentiate, among other features, by obliged parties. These are obligations on energy suppliers and energy end-users. Supplier obligations have been introduced in North America, Europe and Australia. Under supplier obligations energy suppliers have to comply with mandatory energy saving targets and thus they implement (directly or via third parties) energy efficiency projects on their clients’ premises, or they decide to trade certified project savings if this option is envisaged by their obligation scheme. In several emerging schemes such as the UK Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, the Tokyo Emission Trading Scheme or the Perform Achieve and Trade (PAT) Scheme in India, the obligation to reduce energy consumption is placed on large end-users directly and end-users are allowed to trade emissions allowances or energy saving certificates.