Whitehead ‘desperately disappointed’ with ECO reforms

Shadow energy minister Alan Whitehead has said government's plans for a reformed Energy Company Obligation show it has "given up" on tackling energy efficiency in fuel poor homes.

“I am desperately disappointed with the Government’s response to the problem of home energy efficiency outlined in the new Energy Company Obligation (ECO),” said Whitehead in a statement following the publication of government’s plans for reforming the scheme which requires energy suppliers to carry out energy efficiency measures in customer homes.

“Whilst I am pleased at the focus on fuel poverty suggested in the measures,” said Whitehead, “it looks to be little more than a conjuring trick if that greater concentration is subject to an overall savage shrinking of the overall pot for energy efficiency measures.”

Whitehead added that the new ECO amounts to “a shadow of the measures that up to 2012 ran at a level 80 per cent higher than those achieved since or will be achieved through the shrunken funding.”

He said this is “bad news for UK climate change and fuel poverty targets” and shows “government has simply given up on making the sort of inroads into energy poor homes that we all know are absolutely necessary right now”. 

Government set out its reponse to a consultation on the future of the ECO scheme alongside a Final Impact Assesment for its reforms yesterday. 

Key policy decisions made in the new ECO approach include:

• An 18 month extension to the ECO scheme (April 2017 – September 2018).
• Steps to “simplify” and “target” the scheme
• An increase to numbers included in the Affordable Warmth Group from around 3 million today to around 4.7m.
• The extension of certain measures under Affordable to social housing in EPC bands E, F or G
• New responsibilities for local authorities in determining eligible homes. Suppliers will be able to use this ‘flexible eligibility’ mechanism to deliver up to 10 per cent of their Affordable Warmth obligation;
• A requirement to deliver a minimum level of solid wall insulation will be increased from to 21,000 installations per year;
• A commitment to ensure 15 per cent of the Carbon Emission Reduction Obligation is delivered in rural areas.
• Steps to simplify ECO administration by introducing ‘deemed scores’ rather than the current Standard Assessment Procedure.