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Energy suppliers must insulate at least half the total area eligible for an Energy Company Obligation (Eco) measure before they can install a second measure under the scheme and be awarded the carbon saving for it, according to new guidelines from Ofgem.
This means suppliers must insulate, for example, a minimum of 50 per cent of an external cavity wall area before they can then be attributed the carbon saving for a second Eco measure they install at a property.
Ofgem said this is a “sensible approach” and ensures that Eco is delivered in a flexible and cost effective manner.
However, the regulator has stated that for all Eco measures, suppliers “must install 100 per cent of a measure at a premises, unless there are reasonable grounds for not doing so”.
Another tweak to Eco allows suppliers to connect properties to a district heating system without insulating the house where there are legal restrictions or “unacceptable inconveniences” involved.
When a supplier identifies a reason that prevents a cavity wall or a loft from being insulated when looking to connect a propoerty to a district heating system, the supplier should inform Ofgem.
The proposed changes follow cuts to the Carbon Emissions Reduction Obligation element of Eco, which were confirmed by the government last month, despite strong opposition to them.
These changes are expected to be implemented in the next few weeks and will apply to the current Eco period which runs up until 31 March 2015.
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