Ofgem's full consultation response can be downloaded from:
https://www.ofgem.gov.uk/publications-a ... n-part-two
Ofgem's position and final policy on each of the three consultation questions are as follows:
Question 1: Do you agree that an LA declaration should be dated prior to the date of installation of the measure?
Position
1.8. We have amended our position to allow parties to agree the timing of the LA declaration. Notwithstanding this there is a requirement that LAs are “consulted” before measures are installed under this provision. Prior to notifying measures suppliers must make sure that the LA confirmed this on the declaration.
Final Policy
1.9. Local Authority (LA) declarations can be made before or after the installation of measures under this provision. Parties involved in flexible eligibility are free to negotiate when declarations should to be made.
1.10. There is the requirement to consult with LAs prior to the installation of measures. The ECO2 Order does not stipulate who must undertake this; however we anticipate that this will most likely be undertaken by the installer who installs the measure, or by the supplier who submits the measure to us. It is strongly recommended that this consultation includes discussion on which households are considered by the LA to be eligible. An LA cannot be “consulted” on a measure after it has been installed.
1.11. LAs will be required to confirm they were “consulted” prior to the installation of a measure. They will do so by checking the appropriate box on the LA declaration template. If this requirement is not met then the measure will not be eligible.
Question 2: Do you agree with our proposed administration of solid wall insulation in-fill?
Position
2.14 We will continue with the approach consulted on, with the clarifications outlined.
Final Policy
2.15 Local Authority (LA) declarations, including those with in-fill, will remain valid for the entire ECO2t period (ie from 1 April 17 – 30 September 18 inclusive) unless otherwise stated by the LA. There is no requirement to reassess households once an LA declaration has determined a household to be fuel poor (FP), low income and vulnerable to cold (LIVC) or solid wall insulation (SWI) in-fill within this period.
2.16 In-fill forms part of the flexible eligibility cap of 10% of the total home heating cost reduction obligation (HHCRO) target. Once all measures are approved we will carry out an assessment of a supplier’s flexible eligibility measures before we determine whether a supplier has achieved its HHCRO. Where the carbon savings for a supplier’s flexible eligibility exceeds the 10% limit we will revoke our earlier approval of some of the flexible eligibility measures with total savings equal to the amount by which the limit was exceeded. If we are required to revoke approval of measures we will work with suppliers to select which measures this will apply to. It is important to note that these measures may be eligible for carbon emissions reduction obligation (CERO) or another element of HHCRO and could be re-elected as such.
2.17 SWI in-fill is only available to private domestic premises (social housing is excluded).
2.18 There is no requirement for households identified as FP or LIVC on a declaration to receive a SWI measure to support the delivery of SWI to properties identified as eligible for in-fill.
2.19 Should any of the FP or LIVC properties be removed from a project for any reason, this does not invalidate any of the
properties identified as in-fill on the same declaration. This assumes the original LA declaration is valid and
has the appropriate percentage of FP or LIVC properties.
2.20 Only LAs can determine properties as in-fill.
Question 3: Do you agree with our proposed administration of evidencing that the LA has published a statement of intent and that it includes the minimum required information?
Position
3.8 We will continue with the approach consulted on, with some clarifications.
Final policy
3.9 To make local authority (LA) declarations, an LA must publish a statement of intent (SoI) regarding its delivery of the flexible eligibility provision. This SoI should be publically available (eg published on an LA’s website) so that it can be easily accessed by interested parties.
3.10 For the purpose of assessing measure eligibility we will only require at audit that suppliers are able to evidence that:
a. the SoI was published prior to any LA declarations being made by that LA, and
b. the SoI includes a methodology on how the LA intends to target fuel
poor (FP) and low income and vulnerable to cold (LIVC) households.
3.11 It is best practice for suppliers to check that the methodology is reasonable and meets the BEIS policy intent.
3.12 The supplier can provide evidence of the above by:
a. producing a screenshot of a published and dated SoI
b. producing a hardcopy of the SoI, or
c. any other means agreed with Ofgem.
3.13 Suppliers are entitled to rely on the LA having made an accurate assessment of eligibility. However, if Ofgem finds that the SoI was not published before the LA declaration was made or that the methodology for targeting is not included in the SoI we will look to reject the measures included in the relevant declarations, ie those linked to that version of the SoI. However, these measures may be eligible for the carbon emissions reduction obligation (CERO), or another element of the home heating cost reduction obligation (HHCRO), and could be re-elected as such.
3.14 There should be clear version control of the SoI including version number and the date of change. Suppliers should be aware that an LA may update its SoI and publish a later version. In such circumstances the supplier should obtain assurance from the LA that it published the relevant version of the SoI prior to the date the LA declaration was made. Stakeholders should refer to BEIS guidance for further details.
3.15 An LA can provide declarations for households not within its administrative area under certain circumstances. For example, this includes where an LA delegates some functions to another LA, where the LA providing the service is best placed to make a determination of the eligibility of a household. The LA providing the declaration on behalf of another area or LA should satisfy itself that it has sufficient authority for making the SoI and/or LA declaration. In practice this will require all parties to co-sign the SoI including confirmation that an LA was acting on behalf of another.
3.16 BEIS will publish a separate guidance note for LAs. This will provide guidance on the content of SoIs, version control, information on targeting and templates for the SoI and declarations.
