ECCC calls for ECO extension to 2018

The Energy and Climate Change Committee (ECCC) has called for an extension of the Energy Company Obligation (ECO) to March 2018 to avoid "making the same mistakes" as previous schemes.

ECO, a government scheme to obligate large suppliers to deliver energy efficiency measures to households, is due to end in March 2017 before a new obligation is expected in 2018.

In a report, the ECCC recommended that Decc reconsider its decision to use a supplier obligation to tackle fuel poverty and extend ECO until March 2018, in order to provide stability for the supply chain while a new supplier obligation is developed.

The report highlighted industry concerns about the transition period and said “it must not repeat the mistakes of the badly handled transition from the previous schemes to ECO”, which had “unintended consequences for industry and the supply chain”.

It also called on Decc to consult on the design of the new supplier obligation, which it said should be introduced in 2019.

The ECCC insisted Decc publish the evidence used to determine that a supplier obligation is the best mechanism for tackling fuel poverty so it is open to public scrutiny.

“It is crucial the government establishes a long-term framework for energy efficiency” the report said. The other measures it suggested include: reinstating the zero carbon homes policy, empowering local authorities to deliver energy efficiency programmes, and reintroducing a range of options and incentives for ‘able-to-pay’ households following the closure of the Green Deal.

The ECCC said it is “disappointing” that Decc is not prioritising the issue of providing energy efficiency to ‘able-to-pay’ households, as Lord Bourne told the committee that “the number one priority in the home energy area at the moment is getting ECO right”, adding: “that doesn’t mean [other work on energy efficiency] is not happening, but it is happening more slowly”.

Criticism of ECO also came from Spark Energy in August 2015, when the independent supplier’s chief executive Chris Gauld told Utility Week that uncertainty around the future of the scheme was affecting his ability to attract investment.