1. ECO2t Overview ALEO North East 16th June 2017 Nicola Marshall
Development Manager
Government Obligations

2. ECO2e - The Reality of a simplified obligation……

3. ECO2 to ECO

4. ECO2e – Energy Company Obligation Extension
ECO to be extended by 18-month from 1st April 2017 to 30th Sept 2018
£640m spend per annum
Re-balanced to tackle fuel poverty and others on low incomes.
“Deemed scores” to be introduced for assessing bill and carbon savings – replacing current SAP methodology. The Ofgem published deemed scores to be uplifted by 30% for both CERO and AW
Government to collect more detailed information on ECO costs
Affordable Warmth - AW (HHCRO)
Increased as a proportion of the scheme, from c. 36% to 70% of spend
Carbon Emissions Reduction Obligation (CERO)
Decreased as a proportion for scheme, from 34% to 30% of spend
Remove requirement for GDAR and CSR for CERO
Carbon Saving Community Obligation (CSCO)
Ended 31 March 2017

5. AW ECO2e - Modelled uptake of measures
Installs
Low-cost Cavity Wall Insulation
101,000
High-cost Cavity Wall Insulation
3,000
Loft insulation
148,000
Solid wall insulation
Gas Boilers replacements
37,000
Oil boiler replacements
8,000
First time central heating
4,000
Heating controls
6,000
Total
311,000
Required up to 31st March
ECO Transition requirements tbc – additional options for AWG qualifying criteria

6. ECO2e – Affordable Warmth (AW)
Simplified and better targeted
Sub criteria will be removed for recipients of some means-tested benefits.
Income thresholds for Tax Credit and Universal Credit recipients amended to better reflect disposable household income
Targeted at
c. 4.2m private household in fuel poverty or low income plus
c. 0.5 million social housing households
Insulation measures extended to social housing in EPC Bands E, F, G
Local authorities to determine eligible homes via the “flexible eligibility” mechanism.
Number of qualifying gas boiler replacements limited to c. 25,000 a year (37,000 in total)
Focus on insulation and central heating systems
Solid wall minimum 21k year

7. LA Flex ScottishPower welcomes the introduction of LA Flex:
LA flex increases the number of homes that can benefit from HHCRO/AW measures
Helps households who were not able to benefit from ECO in the past because they were not on appropriate benefits
Provides the opportunity to blend different pots of funding with ECO
Supports an area based delivery approach – households may qualify for assistance from ECO via AWG eligibility, LA Flex or CERO
Starts to link Energy Efficiency and Health
Learning’s can be used to shape future Policy Development
However:
The range of measures under LA Flex is limited
LA Flex will focus on cavity wall, loft insulation, a limited number of boilers (focus will be on Oil and LPG boilers)
Solid Wall will only be included if the project is supported by significant sums of external funding

8. Benefits of LA Flex Energy Company Local Authority
Help us to deliver ECO cost effectively – reduced search fees, access to homes which have not had energy efficiency measures installed and benefits of area based approach
Blending Pots of Funding – Health funding, Local Authority funding, Warm Homes Discount Funding etc
More homes to target – helps us to target ECO at homes which have not been eligible for previous schemes
ECO funding will be used to help those most in need
Deliver ECO measures to some of the lowest income homes and some of the hardest to heat homes
Attract as much ECO funding into their LA area
Key role to play in helping to find households who can benefit from ECO measures
LA’s can help households who haven’t been able to benefit from previous ECO schemes
Link ECO funding to existing projects which have been set up to target some of the most vulnerable homes in the area
Bring together pots of funding
Access to data (including HECA reports on what has already been done)
Have resource on the ground visiting homes in the community
Trusted by householders
Local knowledge - know the area , improve targeting

9. What are we looking for?
‘Can do’ Local Authorities – able to mobilise quickly
Access to pots of funding to support ECO funding
Volume of properties occupied by Fuel Poor or Living in Vulnerable conditions that can benefit from low cost insulation measures
LAs with existing projects that target low income and vulnerable customers – LA Flex can be bolted on to existing projects very easily
LAs with resource to support the project particularly ‘targeting’
Structured Projects – clearly defined targeting and eligibility, clear understanding of the role of each Partner within the project
LAs that understand ECO and understand the importance of Compliance
LAs that are committed to making things work – CEO support for the project and speedy sign off process for the householder declarations
Required up to 31st March
ECO Transition requirements tbc – additional options for AWG qualifying criteria

10. Bath & North East Somerset Council
1st to Publish Statement of Intent
LA Flex will contribute to the Council’s Corporate Strategy, Health and Well Being Strategy, Environmental Sustainability & Climate Strategy and Economic Strategy
Welcome the Flexible Eligibility Powers to provide Affordable Warmth assistance to fuel poor households
13.2% (10,203 homes) in fuel poverty in centre of Bath and rural wards
Cold homes are a particular issue for older and vulnerable persons
Links to ‘Energy at Home Scheme’ which includes a strong focus on addressing fuel poverty BANES has procured 2 Partners: An Advice Service CSE and a Delivery Partner Dyson Energy Services
£1m of grant funding support
Clear eligibility criteria - Income of £20k or less and less than £30k in savings Score 35 or above in response to high cost questions Have one or more members with a long term illness, a disability, aged over 60 or with children under 18
1st to Publish Statement of Intent
LA Flex will contribute to the Council’s Corporate Strategy, Health and Well Being Strategy, Environmental Sustainability & Climate Strategy and Economic Strategy
Welcome the Flexible Eligibility Powers to provide Affordable Warmth assistance to fuel poor households
13.2% (10,203 homes) in fuel poverty in centre of Bath and rural wards
Cold homes are a particular issue for older and vulnerable persons
Links to ‘Energy at Home Scheme’ which includes a strong focus on addressing fuel poverty
Required up to 31st March
ECO Transition requirements tbc – additional options for AWG qualifying criteria

11. Energy Efficiency Supplier Obligation 2018-2022
Obligation Timelines:
Policy Development – Now
Consultation – over summer 2017
Consultation Response – early 2018
Regulations – early Spring 2018
Obligation begins – 1st October 2018
Key Considerations:
Fuel Poverty
Low income households
Manifesto commitment to insulate 1m homes
Carbon budgets
Devolution
Simplicity and the consumer
The need to understand Ministerial priorities going forward