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British Gas - ECO Update South East CAN

Kelly Greer 5 th September 2012. British Gas - ECO Update South East CAN. Revisions to ECO: Key Points. ECO still remains at £1.3 billion with a 75/25 split between the Carbon Saving Obligation and Affordable Warmth Obligation respectively.

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British Gas - ECO Update South East CAN

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  1. Kelly Greer 5th September 2012

    British Gas - ECO Update South East CAN

  2. Revisions to ECO: Key Points ECO still remains at £1.3 billion with a 75/25 split between the Carbon Saving Obligation and Affordable Warmth Obligation respectively. The new addition is the ‘Carbon Saving Communities Obligation’ (CSCO) element of £190m; designed to target insulation measures in low income communities, defined by their inclusion in the bottom 15% of LSOAs ranked using IMDs (so basically CESP). There is an attempted provision to ensure that rural households are not disadvantaged, as they were under CESP, as a result of low density. Suppliers are required to deliver 15% of their overall CSCO funding to “rural, low income households in settlements under 10,000 people”. To qualify households must receive a qualifying benefit or tax credit under the ECO Affordable Warmth Obligation criteria. The document states that a wider range of measures will be eligible but then only references LI, CWI and EWI. So basically this is CESP for CERT SPG eligible households only, with fewer measures and anywhere outside of cities (10,000 people isn’t really rural, it is a town). There are no details on tenure requirements, likely funding percentages, minimum numbers etc. Hard to treat cavity products now qualify under the Carbon Saving Obligation. There is no definition provided on what classes as a hard to treat cavity. Boiler repairs are included under the Affordable Warmth Obligation “providing that aftercare is provided”. Although there is no definition of what this comprises. The Affordable Warmth Obligation is still private sector only and will follow the CERT SPG criteria. Ofgem, and not DECC, will be the administrator from 1st October 2012 until 31st March 2015.
  3. ECO- 3 strands Affordable Warmth Excludes social housing CERT SPG eligibility Flexible measures, as long as they reduce heating bills Challenges for identifying the eligible and data sharing remain Carbon Saving Significant focus on solid wall Challenges for industry to deliver (target of 500k solid wall measures by April 2015 vs current industry capacity of 20-30k measures pa) Carbon Savings Communities Obligation (CSCO) Lowest 15% LSOA’s by IMD. Will include rural focus for minimum 15% of overall CSCO funding -
  4. Additional Points: Extended list of eligible Green Deal measures 4
  5. Contact information Kelly Greer Energy Solutions Manager British Gas Business Services 07557 610368 Kelly.greer@britishgas.co.uk britishgas.co.uk/communityenergy 5
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