Lisa Sims Social Sales Manager Energy Company Obligation

The make up of ECO ECO Home Heating Cost Reduction Obligation Carbon Saving Obligation Communities Carbon Saving Obligation Rural

ECO – Carbon Emissions Reduction Obligation (CERO) (all E.ON figures based on 15% share) Obligated Target2.655MtCO2 Eligibility: All to support Green Deal Golden Rule Measures Permitted: “Gateway” measures of Solid Wall and Hard to Treat Cavity Wall Insulation Other measures: Loft Insulation, DP, District Heating DECC budget anticipation (annual) £114m Current installing capacity in UK too small What do we know so far?

ECO – Carbon Savings Communities Obligation (CSCO) Obligated Target 0.75MtCO2 Eligibility: Must be in designated LSOA Measures Permitted: All insulation and District Heating DECC budget anticipation (annual)£28.5m Current Views: Extension to CESP activity Rural Subset for settlements of >10,000 What do we know so far?

ECO – Home Heating Cost Reduction Obligation Obligated Target £0.63bn Eligibility: Must be private households in SPG “Plus” sector Main Measures: CWI, LI, SWI, Broken boiler replacements or repairs. DECC budget anticipation (annual) £52.5m Current Views: DECC budgets are significantly underestimated What do we know so far?

Started October 2012 – consultation – responses by 25 January 2013 Intended to be a 10 year scheme, though initial phase runs through to March 2015 (2¼ years) £1.3bn estimated annualised cost, expected to be split: 75% Carbon Savings 25% Affordable Warmth ECO timings

Full market approach, targeted at Gateway and key measures. Work with internal and external Green Deal providers to provide cost efficiency. Utilise brokerage if cost effective route to delivery Learn from CESP and CERT Growth of existing CESP relationships and sites New partnerships E.ON’s Approach to ECO

Project Team already active to carry out detailed analysis of ECO delivery mechanisms Transition of CERT and CESP teams to ECO by Q Early trials with partners being established, some contracts already placed. CESP expansion schemes RSL Partnerships Intermediary Managed schemes Community scheme Installer self generation Retail co branding E.ON’s steps into ECO

Delivery Team expansion – Direct as part of national network or via GDP route Assessment Team expansion – Direct as part of national network or via GDP route Expansion of domestic heating capacity Home Heating Cost Reduction Obligation – Relationship Managers Carbon Savings – Business Development Managers Making it work – Externally

Lessons from CESP Trial proposals from multiple potential partners in all sectors Retaining key skilled partners Trial budgets for 2012 up to £25m IT system capability from October 2012 Making it work – Early

Not just a funding provider Nottingham City Homes and NEP Aligning programmes Creating apprenticeships – working with local SME’s Training and up-skilling local people Community amenities – play area, allotments community halls Age UK Schools Programmes Working in Partnership

ECO is a major growth from CERT and CESP Positive lessons from CERT & CESP must be adapted ECO Schemes – Affordable Warmth and Carbon Off Gas Properties Long term Partnerships are desirable If you think you have a role in ECO then E.ON are open for business. Summary

Questions?