Consultation outcome

Energy Company Obligation: ECO3, 2018 to 2022

This consultation has concluded

Download the full outcome

Energy Company Obligation, ECO3 2018-2022: government response

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Detail of outcome

The government’s response to the Energy Company Obligation (ECO3) consultation sets out the policy of the scheme that will run from Autumn 2018 until March 2022. The scheme delivers energy efficiency and heating measures to homes in Great Britain.

The scheme’s other main policies include:

  • focusing the entire scheme to support low income, vulnerable and fuel poor households
  • reducing the current supplier obligation threshold of 250,000 customer accounts (or equivalent) for the scheme, in a phased way, to 150,000 customer accounts (or equivalent) from 2020
  • requiring 15% of measures to be delivered to rural homes
  • increasing the proportion of the scheme that can be delivered under local authority flexible eligibility to 25%
  • allowing up to 10% of a suppliers’ obligation to be met through the delivery of new, innovative products
  • supporting households that have a broken heating system by allowing the equivalent of 35,000 broken heating systems to be replaced per year
  • encouraging a multiple measure approach by allowing the replacement of inefficient heating systems to be replaced (outside of the broken heating system cap) if they are installed alongside insulation
  • requiring the equivalent of at least 17,000 solid walled homes to be treated per year, either through solid wall insulation, or using a combination of other technologies (if equivalent savings can be achieved in the property)

Detail of feedback received

The consultation received 239 formal responses.

The majority of responses were supportive of most of the government’s proposals. Respondents largely agreed with the move to focus the scheme entirely to support low income, vulnerable and fuel poor households.

Original consultation

Summary

We're seeking views on the future of the Energy Company Obligation, a programme that delivers energy efficiency measures to low income and vulnerable households across Great Britain.

This consultation ran from
to

Consultation description

We’re seeking views on the future design of the Energy Company Obligation (ECO) scheme. This includes:

  • the scheme moving to a 100% Affordable Warmth scheme for fuel poor, low income and vulnerable households
  • the energy efficiency and heating measures that can be delivered under the scheme
  • the proportion of the scheme that can be delivered under Local Authority Flexible Eligibility
  • how ECO can support innovation

Energy suppliers, energy efficiency manufacturers, installers and trade bodies, groups interested in fuel poverty issues and local authorities may have an interest in this consultation. Members of the public with an interest in energy efficiency and fuel poverty issues may also wish to respond.

Documents

Energy Company Obligation ECO3 2018-2022: consultation document

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ECO3 2018-2022: consultation stage impact assessment

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Draft Electricity and Gas (Energy Company Obligation) Order 2018

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Published 30 March 2018
Last updated 19 July 2018 + show all updates
  1. Government response published
  2. First published.