On the 20th of July 2021, The Department for Business, Energy, and Industrial Strategy (BEIS), published information on an open consultation on the design of the Energy Company Obligation (ECO), as they are seeking views on the proposed changes to the next phase of the scheme (ECO4), which is due to begin in April 2022.
The current scheme, ECO3, was launched in December 2018 and runs until 31st of March 2022. The current Energy Company Obligation scheme is an obligation placed on the energy companies to provide funding for low-income households and benefit recipients, and is designed to alleviate fuel poverty, reduce carbon emissions, and help reduce householder’s energy bills.
Proposed changes to the next phase: ECO4
You can access the full document and find out more by visiting the Open consultation: Design of the Energy Company Obligation ECO4: 2022 – 2026.
According to BEIS, 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 buyout mechanism to enable small suppliers to participate in ECO, subject to primary legislation.
Who can take part in the ECO4 consultation?
The consultation is open to everyone and BEIS are keen to seek views on the proposed changes to the next phase of the Energy Company Obligation (ECO4) scheme. However, BEIS has stated that it has particular relevance to energy suppliers, energy efficiency installers, manufacturers, local authorities and consumer groups.
The consultation closes at 11:45pm on the 3rd of September 2021.
How can you respond to the ECO4 consultation?
BEIS are asking for responses online, rather than by post.
When is the ECO4 scheme due to start and finish?
The ECO4 scheme is due to run from April 2022 to the end of March 2026.