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SSE and First Utility lag behind on Eco targets

SSE and First Utility insist they will reach targets under the Energy Company Obligation (Eco) scheme, despite Ofgem figures which reveal they are lagging behind their competitors.

The figures show the progress made by suppliers up until March 2016, under the second part of the Eco scheme. Suppliers have until 31 March 2017 to fully meet their Eco targets.

While the majority of the big six suppliers have already exceeded these targets, SSE is yet to meet them, having hit 99.61 per cent, including surplus actions from Eco1.

The company insisted it is “confident” that it will achieve its target by March 2017.

“Each of the obligated suppliers sets its own strategy on meeting its Eco obligation,” a spokesperson told Utility Week. “SSE is comfortable with both its delivery to date and its plans for the delivery of the balance of the obligation.”

Meanwhile, Eon has already reached nearly double its target (191.66 per cent), and EDF has achieved 145.81 per cent. Scottish Power follows closely with 135.37 per cent, then British Gas (116.67 per cent) and Npower (108.6 per cent).

The largest of the independents, First Utility, is the furthest behind target, at 74.32 per cent, closely followed by other large independents Ovo (78.32 per cent) and Utility Warehouse (84.29 per cent).

A First Utility spokesperson said: “We are on track to hit our overall target for Eco2 by the end of the scheme in April 2017, just as we hit and in many cases exceeded the target for Eco1.

“The interim reporting merely shows the progress towards the target set for April 2017 and we’re progressing as we expected in order to comfortably meet this target.”

The Eco scheme requires suppliers to deliver energy efficiency measures to domestic customers in the UK. It will close in March 2017, when the government is expected to announce a new scheme to come into effect in March 2018.

The industry has expressed concern about the transitional year before the new scheme, which is expected to focus on the fuel poor, comes into effect.