ECO scheme faces ‘chaos’ warns Futureproof

future proofEnergy Secretary Ed Davey is today urged to overhaul the way the Energy Companies Obligation scheme is administered.

Under the ECO, the “Big Six” energy suppliers are expected to invest around £1 billion a year to provide almost 250,000 low income homes with free A-rated boilers and insulation.

But leading energy network, Futureproof, said the scheme was in danger of descending into “chaos” because of the lack of a unified system to oversee the way consumers apply for the ECO through to how installers were paid for carrying out the work.

Adam Mitchell, Director, Futureproof, said there were many examples of gas heating engineers going unpaid by approved Green Deal providers for jobs they have completed or finding forms they have submitted for potential boiler replacements being rejected.

Mitchell said: “It is all very well the Government talking about targets for the ECO and other Government carbon reduction initiatives, but the reality is that the way in which it is administered needs to be overhauled.

“This is a scheme that is supposed to be helping some of our poorest households keep warm and become more energy efficient, while creating significant amounts of work for installers across the UK.

“But the problem at the moment is that the various parts of the process – consumers, installers, providers and energy companies – are not properly connected and therefore the scheme is in danger of descending into chaos.

“Only by putting in place a totally joined up and transparent system that works for everyone will ECO deliver the results the Government hopes that it will.”

The ECO is the grant-funded element of the Green Deal and the cost of the boilers is met by the “Big Six” energy suppliers including British Gas, E.ON, Scottish Power, Npower, SSE and EDF.

If someone owns their home or is a private tenant they could be eligible for a 100% grant to pay for a new boiler. The boiler would be installed by a Gas Safe Registered Boiler installer.

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed