30 SECOND GUIDE: ECO

Ah, the green agenda.

Quite. ECO in this case stands for the Energy Company Obligation, a flagship government policy introduced in January to make big power firms help householders boost the energy efficiency of their homes.

How does it work?

In theory it cuts carbon emissions and supports people living in fuel poverty by funding energy efficiency improvements worth around £1.3bn every year.

Such as?

Insulation of houses and flats, affordable heating and solid wall or hard-to-treat cavity wall insulation are all included.

What’s the downside? As they are obliged to subsidise households the big energy firms complain it costs too much and is less effective than hoped.

Any examples?

Sam Laidlaw, boss of British Gas owner Centrica, yesterday added to RWE npower’s criticisms. He called for a sit-down with the Government to see if this is the most cost-effective way of reducing carbon emissions. Centrica reckons £1 in every £4 spent on heating bills is wasted due to poor insulation.

So bills could come down

Don’t hold your breath. Where energy is concerned, consumers are usually hardest hit. The ‘Big Six’ providers’ profits keep rising while average dual fuel bills are now more than £1,400 a year.


full article

Energy Company Obligation

The ECO (Energy Company Obligation)

The ECO for the big six energy suppliers is also being launched in early 2013. It is in three parts:

Affordable Warmth Obligation

To provide heating and insulation improvements for low-income and vulnerable households (but social housing tenants are not eligible for affordable warmth).

There are complex eligibility criteria for this means-tested scheme. Call the Energy Saving Advice Service on 0300 123 1234 to check whether you might be eligible, and to apply if you are.

Carbon Saving Obligation

To provide funding to insulate solid-walled properties (internal and external wall insulation) and those with ‘hard-to-treat’ cavity walls.

This is not means-tested but can be used in conjunction with the Green Deal. The aim is to provide enough support to make these relatively expensive measures cost-effective.

Carbon Saving Communities Obligation

To provide insulation measures to people living in the bottom 15% of the UK's most deprived areas. It is expected that this element of ECO will particularly benefit the social housing sector.

Through ECO, the government aims to help 230,000 low-income households or those in low-income areas. Of the expected investment by suppliers of £1.3bn per year, there will be a 75:25 split between the carbon and affordable warmth obligations.

Free New Energy Efficient Boilers

The ECO fund,uses subsidies to encourage homeowners and tenants alike to install energy efficient measures.

Available to ALL low income and vulnerable homeowners and tenants.
If your boiler is more than 8 years old
Own your own home and earn less than 16k pa
Tenant earning less than 16k pa
Pension tax credit
Child tax credit
Working tax credit


If the answer is yes to any of the above, then you are eligible to the government grant.


Find out more at www.ofgem.gov.uk

ECO Energy Companies Obligation

The Energy Companies Obligation (ECO) is a government energy efficiency scheme for Great Britain which has replaced the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP) programmes, both of which came to a close at the end of 2012. It operates alongside the Green Deal and places obligations on larger domestic energy suppliers to domestic householders, with a focus on vulnerable consumer groups and hard-to-treat homes.