ECO4 has finally been confirmed and given the go ahead! We have detailed below what we know so far on the latest version of the Energy Company Obligation (ECO4), and have included an FAQ section, a list of main features of the ECO3 interim period and, how ECO Surv will be adapting to this. As always, we will keep you updated at the very earliest, if any new developments or changes get announced.
Main Features of ECO3 Interim
- The interim period will run from the 1st April 2022 until the 30th June 2022.
- Household eligibility benefits remain the same as ECO3 rules
- DWP Data Match services won’t be available during the ECO3 interim period.
- The timeline will be the same as current ECO3 rules, so measures must be notified to Ofgem by the end of the month following completion of the measure.
- There will be no caps on the amount of delivery an energy company can complete.
- The ECO3 10% carry over cap only applies to work completed before the 1st April 2022.
- No funding for condensing boiler to condensing boiler replacements.
- Dual measures will be eligible, but only where the boiler being replaced is replaced / upgraded is an inefficient boiler / heating system.
- The BEIS are intending to confirm the full details of the proposed interim period in the BEIS ECO4 consultation response, this is currently due to happen in March/April.
- The rules regarding a property’s eligibility for the FTCH will continue and inefficient heating replaced with FTCH will continue to be uncapped.
- The definition of efficient heating is planned to follow the current ECO3 definition.
Main Features of ECO4
The government’s response to the Energy Company Obligation (ECO4) consultation sets out the policy of the scheme from April 2022 until March 2026. The scheme, worth £4 billion, delivers energy efficiency and heating measures to homes in Great Britain:
- 10% of ECO3 delivery may be carried over into ECO4, subject to certain measure exclusions
- to support supply chain delivery, between 1 April 2022 and 30 June 2022, measures may be installed to ECO3 rules, subject to certain measure exclusions
- early delivery of ECO4 measures during any gap between ECO regulations will be allowed
- carry-under will not be implemented
We have added in FAQs below, but if you cannot find an answer to a question that you may have, then please do get in touch!
How long will interim period last for?
The interim period will last for 3 months, and will start on the 1st April 2022 until the 30th June 2022. ECO4 will not begin until at least 1st July 2022.
What will be used to confirm the funding for the interim period?
ECO3 scoring will be used to confirm the funding for the ECO3 interim period.
Has the LA flex changed?
LA Flex has not changed.
We are awaiting confirmation on whether the ECO4 process of issuing the declaration to Ofgem will be a requirement for the ECO3 interim period. We do know that any declarations signed prior to 1st April 2022 will not be accepted, these will need to be re-issued.
Will Scotland be included in the Interim period?
We have gotten the confirmation that Scotland will indeed be included in the Interim period.
What measure types will be eligible?
All current ECO3 measure types are eligible, except the below:
- Installation of Oil and LPG fuelled heating systems
- Solid Wall Alternative Measure (SWAM)
- Demonstration Actions
Are broken boilers eligible?
The Energy companies plan to only accept broken boilers that are a replacement of an inefficient boiler during the interim period. Replacement of efficient broken heating is capped in ECO4.
The Energy Companies intend to include this measure type in the standard contract, as opposed to including in a separate Broken Heating contract.
Will the replacement of broken efficient Electric Storage Heaters be eligible for FTCH?
We are unsure on this yet, but we will keep you updated on this.
How ECO Surv Will Adapt?
The latest variation of the Energy Company Obligation (ECO4) has finally been confirmed! After rumours that the scheme would be scrapped, we are thankful that fuel-poor households will still have the financial support that they need.
Due to the delay in the ECO4 scheme being approved, BEIS have introduced an ECO3 interim period to bridge the gap between the two schemes and ensure continued activity within the industry.
As a result, we have created a new option for ECO3 Interim within the Lead Creation tool (you can change this from the General Information tab if needed). Choosing this option will remove the requirement for any DataMatch to be completed.
You can still capture the benefit information for the customer but will not be required to submit this to the DWP.
Get in Touch
As previously stated above, the rulings are still being ironed out, so these are subject to change, but we will be keeping you updated at the very earliest!
If you do have any questions at this stage, then please do not hesitate to get into contact with us below.