The Energy Company Obligation (ECO) requires obligated energy suppliers to deliver energy efficiency and heating measures to homes in Great Britain. These measures help households to keep their homes warmer, reduce their energy bills and reduce carbon emissions. The scheme started operating in January 2013, and as of July 2018 has delivered over 2.4 million improvements in around 1.8m homes.
In July 2018, the Government confirmed that the ECO3 scheme would become a 100% Affordable Warmth scheme. ECO3 supports low income, vulnerable and fuel-poor households meaning that all measures should be delivered to these groups. The scheme helps homes to reduce their energy bills and consequently tackles fuel poverty and vulnerability to the cold. The scheme will run until 31 March 2022. Full details on the scheme are available on the Ofgem website.
Under ECO3, energy suppliers will be able to meet up to 10% of their obligation through delivering innovative measures to eligible households. There are two innovation routes under the scheme:
- Demonstration actions – measures that have previously been tested in a laboratory setting and now require testing at scale in a live environment or are marketable products that are being sold in the market and may need additional support.
- Innovation measures– a measure that is different from those previously delivered under supplier obligations by having an improved material that can demonstrate, for example, improved energy efficiency performance or an improved installation technique. The measure will receive a 25% uplift from the measure type’s existing deemed score to encourage it to be delivered under the scheme.
In light of NEA’s objectives, ethos and ethics, coupled with our technical experience and skills, we are well placed to assist or lead in the delivery of some ECO innovation studies – through:
- Assistance with the ‘Demonstration Action Selection Panel’ application
- Project management
- Monitoring – design, implementation and analysis
- Resident recruitment, engagement and support