BEIS ECO3 Consultation Published

[ALEO Admin]

The Department for Business, Energy and Industrial Strategy (BEIS) published its consultation on ECO3, the next phase of the Energy Company Obligation, on 30 March 2018.

The consultation is intended to fully focus the scheme on affordable warmth, targeting fuel-poor, low-income and vulnerable households. Because of this, the Carbon Emissions Reduction Obligation (CERO) will be removed. However, BEIS is proposing to increase the size of the Affordable Warmth Group such that around 6.5 million households will be eligible, including households in receipt of Child Benefit (subject to an income threshold) and disability benefits, including Personal Independence Payments.

The consultation also includes a proposal to increase the percentage of the scheme that can be delivered under Local Authority Flexible Eligibility from 10 per cent to 25 per cent.

The consultation proposals also include the following:

- Oil and coal fuelled heating systems will no longer be repaired or installed under the scheme

- First time central heating (FTCH) will be applicable to both private and social housing and include households that are heated by electric storage heaters, which are all inefficient or broken

- The current mains-gas boiler cap will be replaced with a new Broken Heating Cap

- An uplift of 400% to apply to all broken boiler replacements in both gas and non-gas fuelled homes

- The non-gas uplift for qualifying boilers and all other current uplifts will also cease to apply under ECO3, including the overarching uplift of 30% to all deemed scores

- Inefficient heating systems to only be upgraded alongside insulation unless they are replaced with FTCH, or renewable or district heating

- Efficient working heating systems to only be replaced by renewable or district heating systems

- The Solid Wall Insulation minimum requirement to change from 21,000 SWI installations per annum to 17,000 solid walled homes being treated through SWI or to achieve equivalent bill savings

- An in-fill mechanism where at least 66% of the households receiving the measure should be social E, F or G households, or meet the Affordable Warmth eligibility criteria, with the proportion of homes in the same building, adjacent buildings or the same terrace that can receive solid wall insulation as ‘in-fill’ limited to 50 per cent

- Measures installed that are accredited under RHI to no longer be eligible for ECO

- Obligated suppliers to have the option of delivering a proportion of their obligation through innovative products, technologies and processes, with the maximum between 10% and 20%

- The current guarantee requirements for solid wall insulation to be replaced with the Each Home Counts quality mark approved guarantee, in order to receive a 36 year lifetime

Please see the consultation document for the full list of proposals, which can be downloaded from:
https://www.gov.uk/government/consultat ... 18-to-2022

The consultation documents also include an Impact Assessment and a draft Statutory Instrument - The Electricity and Gas (Energy Company Obligation) Order.

The consultation closes at 11:45pm on 29 April 2018.

[ALEO Admin]

ALEO responded to the BEIS ECO3 Consultation 27 April 2018.

ALEO's consultation response is available to download below: