Energy Company Obligation
(asked on 12th May 2022) - View Source
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what assessment they have made of the benefits of including all energy-saving technologies that reduce the cost of heating or hot water into the Energy Company Obligation (ECO).
Answered by
Lord Callanan
Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The targets for the current iteration of ECO, ECO4, are based on the Home Heating and Cost Reduction Obligation (HHCRO) powers set out in the Electricity Act 1989, Section 41B, and Gas Act 1986, Section 33BD. This allows Government to set a target for the promotion of measures for reducing the cost to individuals of heating their homes. Therefore, measures which do not result in space heating savings are not within scope.
ECO4 is focused on installing energy-efficiency and heating measures in lower income and otherwise vulnerable households across Great Britain. The scheme will run from 2022 to 2026 and is valued at £1 billion a year. This is predicted to help an extra 450,000 families with green measures that reduce the cost of heating such as insulation.