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Energy Company Obligation. Lisa Sims Social Sales Manager. The make up of ECO. ECO. Home Heating Cost Reduction Obligation. Carbon Saving Obligation. Communities Carbon Saving Obligation. Rural. What do we know so far?.
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Energy Company Obligation Lisa Sims Social Sales Manager
The make up of ECO ECO Home Heating Cost Reduction Obligation Carbon Saving Obligation Communities Carbon Saving Obligation Rural
What do we know so far? • ECO – Carbon Emissions Reduction Obligation (CERO) (all E.ON figures based on 15% share) • Obligated Target 2.655MtCO2 • Eligibility: All to support Green Deal Golden Rule • Measures Permitted: “Gateway” measures of Solid Wall and Hard to Treat Cavity Wall Insulation • Other measures: Loft Insulation, DP, District Heating • DECC budget anticipation (annual) £114m • Current installing capacity in UK too small
What do we know so far? • ECO – Carbon Savings Communities Obligation (CSCO) • Obligated Target 0.75MtCO2 • Eligibility: Must be in designated LSOA • Measures Permitted: All insulation and District Heating • DECC budget anticipation (annual)£28.5m • Current Views: Extension to CESP activity • Rural Subset for settlements of >10,000
What do we know so far? • ECO – Home Heating Cost Reduction Obligation • Obligated Target £0.63bn • Eligibility: Must be private households in SPG “Plus” sector • Main Measures: CWI, LI, SWI, Broken boiler replacements or repairs. • DECC budget anticipation (annual) £52.5m • Current Views: DECC budgets are significantly underestimated
ECO timings • Started October 2012 – consultation – responses by 25 January 2013 • Intended to be a 10 year scheme, though initial phase runs through to March 2015 (2¼ years) • £1.3bn estimated annualised cost, expected to be split: • 75% Carbon Savings • 25% Affordable Warmth
E.ON’s Approach to ECO • Full market approach, targeted at Gateway and key measures. • Work with internal and external Green Deal providers to provide cost efficiency. • Utilise brokerage if cost effective route to delivery • Learn from CESP and CERT • Growth of existing CESP relationships and sites • New partnerships
E.ON’s steps into ECO • Project Team already active to carry out detailed analysis of ECO delivery mechanisms • Transition of CERT and CESP teams to ECO by Q4 2012 • Early trials with partners being established, some contracts already placed. • CESP expansion schemes • RSL Partnerships • Intermediary Managed schemes • Community scheme • Installer self generation • Retail co branding
Making it work – Externally • Delivery Team expansion – Direct as part of national network or via GDP route • Assessment Team expansion – Direct as part of national network or via GDP route • Expansion of domestic heating capacity • Home Heating Cost Reduction Obligation – • Relationship Managers • Carbon Savings – Business Development • Managers
Making it work – Early • Lessons from CESP • Trial proposals from multiple potential partners in all sectors • Retaining key skilled partners • Trial budgets for 2012 up to £25m • IT system capability from October 2012
Working in Partnership • Not just a funding provider • Nottingham City Homes and NEP • Aligning programmes • Creating apprenticeships – working with local SME’s • Training and up-skilling local people • Community amenities – play area, allotments community halls • Age UK • Schools Programmes
Summary • ECO is a major growth from CERT and CESP • Positive lessons from CERT & CESP must be adapted • ECO Schemes – Affordable Warmth and Carbon • Off Gas Properties • Long term Partnerships are desirable • If you think you have a role in ECO then E.ON are open for business.
