Energy Company Obligation (ECO)

Fund Overview

Funding required for:

Energy efficiency

Funding source:

Supplier obligation

Description

The Energy Company Obligation (ECO) will take over from the existing obligations the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP). These existing obligations are due to end in December 2012 and the ECO will take over in addressing energy efficiency in the domestic sector.

Details of what this obligation will look like are yet to be confirmed however it is good to be aware of this funding source and start thinking about how you could take advantage of this once it is launched.

It is likely that this form of support will be heavily linked to the Green Deal and will particularly support those householders (eg the poorest and most vulnerable) and those types of property (eg hard to treat) which cannot achieve financial savings without an additional or different measure of support.

The Government will need to include powers in the forthcoming Energy Security and Green Economy Bill to introduce a new obligation on energy companies from 2012, to take over beyond CERT