Design of the energy company obligation eco4: 2022-2026

Consultation outcome DESIGN OF THE ENERGY COMPANY OBLIGATION ECO4: 2022-2026 Get emails about this page This was published under the 2019 to 2022 Johnson Conservative government APPLIES TO

ENGLAND, SCOTLAND AND WALES This consultation has concluded READ THE FULL OUTCOME ECO4: 2022 TO 2026 - GOVERNMENT RESPONSE PDF, 851 KB, 122 pages This file may not be suitable for users of

assistive technology. Request an accessible format. If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email

[email protected]. Please tell us what format you need. It will help us if you say what assistive technology you use. FINAL STAGE IMPACT ASSESSMENT PDF, 1.57 MB, 63 pages This file may

not be suitable for users of assistive technology. Request an accessible format. If you use assistive technology (such as a screen reader) and need a version of this document in a more

accessible format, please email [email protected]. Please tell us what format you need. It will help us if you say what assistive technology you use. DETAIL OF OUTCOME The government’s

response to the Energy Company Obligation (ECO4) consultation sets out the policy of the scheme from April 2022 until March 2026. The scheme, worth £4 billion, delivers energy efficiency

and heating measures to homes in Great Britain: * 10% of ECO3 delivery may be carried over into ECO4, subject to certain measure exclusions * to support supply chain delivery, between 1

April 2022 and 30 June 2022, measures may be installed to ECO3 rules, subject to certain measure exclusions * early delivery of ECO4 measures during any gap between ECO regulations will be

allowed * carry-under will not be implemented The ECO4 scheme’s other main policies include: * supporting households on the lowest incomes. Households in receipt of means tested benefits

will be eligible. Up to 50% of the obligation target can be met under the reformed ECO4 Flex, which is designed to target households on low incomes, but not in receipt of benefits. ECO4 Flex

will be voluntary for local authorities, the Scottish and Welsh governments, and obligated suppliers. The eligible pool will be at least 3.5 million homes * only energy efficiency band D-G

homes eligible for ECO4. For social housing and private rented accommodation, ECO4 will support the least efficient homes in bands E-G only * an EFG minimum target, increased to 150,000

private tenure homes, pushing greater delivery to homes needing the most improvements and attracting higher scores * a solid wall minimum target of 90,000 solid wall measures over the 4-year

scheme * a broken boiler and electric storage heating (ESH) replacement cap for efficient heating to 5,000 per year. Inefficient heating systems upgraded with efficient heating will not be

subject to a cap. Repairs will be capped at 5,000 homes per year, subject to certain conditions * 2 uplifts for innovation, so that improvements can be rewarded and differentiated between

relative and substantial improvements against standard counterparts available in the market. Demonstration actions will be removed * score uplifts of 35% in off-gas rural areas in Scotland

and Wales to incentivise delivery in areas that may be harder to reach The final policy decisions reflect the responses to the consultation and contribute to the government’s wider strategic

aims including eradicating fuel poverty, achieving net zero commitments, and aligning with our heat and buildings strategy. NEXT STEPS * Government will lay affirmative regulations in

Parliament * BEIS will issue new guidance on innovation and the ‘new fuel poverty targeting methods’ approach as set out under ECO4 Flex, route 4 * BEIS will no longer publish a separate ECO

Flex guidance. The conditions of referrals under ECO4 will need to meet the requirements in legislation and Ofgem will publish separate guidance for local authorities, the devolved

administrations and suppliers DETAIL OF FEEDBACK RECEIVED We received 144 responses to the Energy Company Obligation consultation from a variety of stakeholders ranging from the larger

energy suppliers and trade associations to individuals with an interest in energy efficiency and fuel poverty. The responses were broadly supportive of the government’s proposals.

------------------------- ORIGINAL CONSULTATION SUMMARY We're seeking views on our proposed changes to the Energy Company Obligation (ECO) scheme for the next scheme (ECO4), due to

begin in April 2022. This consultation ran from 10AM ON 20 JULY 2021 TO 11:45PM ON 3 SEPTEMBER 2021 CONSULTATION DESCRIPTION We’re seeking views on the future design of the Energy Company

Obligation (ECO) scheme. This includes: * continuing to target low income and vulnerable, and fuel poor households * greater support and deeper retrofit for the least energy efficient homes,

requiring homes to meet new minimum energy efficiency requirements * the proportion of the scheme that can be delivered through local authority referrals, and by suppliers, under a reformed

local authority and Supplier Flexible Eligibility route * supporting innovation under ECO * how ECO interacts with other grant funding * views on a future supplier buy-out mechanism to

enable small suppliers to participate in ECO, subject to primary legislation Alongside this consultation we have published: * a draft impact assessment (on this page) * ECO evaluation

reports The consultation is open to all but of particular relevance to: * energy suppliers * energy efficiency installers * energy efficiency measure manufacturers and associated software

developers * local authorities * consumer groups * academic groups UPDATE 11 AUGUST 2021 Consultation close date extended to 3 September 2021. UPDATE 2 AUGUST 2021 We updated the

consultation document to: * correct the email (page ii) * correct the stated limit in table 11 on the number of ESH replacement and ESH repair uplifts allowed in a given package from “1” to

“no limit” (page 80) Read the BEIS consultation privacy notice. Please don’t send responses by post to the department at the moment as we may not be able to access them. DOCUMENTS DESIGN OF

THE ENERGY COMPANY OBLIGATION ECO4: 2022-2026 PDF, 1.4 MB, 126 pages ECO4 CONSULTATION STAGE IMPACT ASSESSMENT PDF, 1.04 MB, 62 pages SHARE THIS PAGE The following links open in a new tab *

Share on Facebook (opens in new tab) * Share on Twitter (opens in new tab) SIGN UP FOR EMAILS OR PRINT THIS PAGE Get emails about this page Print this page