Letter from Edward Davey to energy suppliers on the Energy Company Obligation (ECO)
Letter from Secretary of State for Energy and Climate Change Edward Davey to energy suppliers on the costs of the Energy Company Obligation (ECO).
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As part of the government’s commitment to make the retail market clearer and more transparent, DECC is today writing to energy suppliers requiring them to provide detailed information on the costs of the Energy Company Obligation (ECO). Rebuilding consumer trust and ensuring energy bill payers get a fair deal is a key priority. That is why the government is using its legal powers to take action to increase understanding of the costs that energy suppliers are passing onto their customers.
The government is working hard to reduce pressures on consumer bills; while continuing to help tackle fuel poverty, support the development of a sustainable energy efficiency supply chain and improve home energy efficiency. Energy suppliers have confirmed that they expect to reduce consumer bills by around £50 per household next year, with £30-£35 per household of the reduction due to the Energy Company Obligation proposals.
The changes the government are proposing are designed to ensure The Energy Company Obligation represents value for money for energy consumers and energy companies need to be much more transparent about how they spend customers’ money. This letter takes important steps towards securing that transparency.