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Energy Company Obligation

Question for Department for Business, Energy and Industrial Strategy

UIN HL15146, tabled on 21 April 2021

To ask Her Majesty's Government what plans they have to extend the Energy Company Obligation to other measures in addition to space heating.

Answered on

29 April 2021

The targets for the current iteration of ECO 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 eligible.

Under the current scheme, ECO3, 44% of measures delivered were a form of insulation with the remainder being heating measures, such as replacement boilers, as of January 2021. ECO3 will end in March 2022, however, it was announced in February’s Sustainable Warmth Strategy that ECO4 will run from April 2022 through to 2026. The value of the scheme will also increase to £1bn per annum for ECO4. Further details about ECO4, including the scope of eligible measures, will be consulted on later this year.