The Energy Saving Trust was set up by the last Conservative Government to run major programmes of investment in energy efficiency, to help meet the UK Government＇s targets to reduce carbon dioxide emissions, The Government was relying on the regulators OFGAS and OFFER to raise the funding required from gas and electricity consumers required rather than providing it from taxation, The regulators, however, felt that they were being expected to introduce taxes by the back door and refused to approve funds on the scale required, The Government＇s failure to resolve this problem suggests that competition was a more important goal of energy policy than the achievement of sustainable development, despite Government statements that they were both important, However, changes in power generation mean that the UK will meet its year 2000 carbon saving target without the Trust. This article explores the development of the Energy Saving Trust and the tensions between the roles of the regulators, OFGAS and OFFER, the Government and Parliament, in the period from 1992 to 1996, The article is based on research undertaken by the author for CSERGE, University of Norwich (Working Paper GEC 95-35), updated to reflect recent developments.