BEIS published their response to the Energy Company Obligation (ECO) “Help to Heat” consultation on 30 January 2017.
It was confirmed that the “extension period” would now run until September 2018 (i.e. for 18 months, rather than one year), and that a further consultation on the scheme through to 2022 would take place at a “later date”.
The ECO will be set at a level worth an estimated £640 million per annum, rising with inflation, and will be re-focused towards low income households. It will encourage installations which make the most impact on reducing fuel poverty, including more insulation.
Further useful information (please refer directly to the source material for context, assumptions and explanations):
- The ECO scheme was launched in January 2013. As of November 2016, it has delivered energy efficiency measures to 1.6 million households in Great Britain
- The Affordable Warmth obligation – focused on low income households – will be increased as a proportion of the overall scheme from around 36% to 70% of estimated supplier spend
- The eligible Affordable Warmth Group will be increased to around 4.7 million rather than 4 million households
- The Carbon Emissions Reduction Obligation (CERO) will decrease as a proportion of the overall estimated spend, from approximately 34% to 30%
- The Carbon Saving Community Obligation will be brought to an end
- Eligibility for certain measures under the Affordable Warmth obligation will be extended to social housing in EPC Bands E, F or G
- The requirement to deliver a minimum level of solid wall insulation will be increased from the proposed equivalent of 17,000 measures per year to 21,000 per year
- A rural sub-obligation of 15% under CERO will be introduced to maintain delivery in rural areas
- Deemed scores will replace the use of the Standard Assessment Procedure methodology