Energy Company Obligation (ECO)
The Energy Act provides for a step change in the provision of energy efficiency measures to homes and businesses, and makes improvements to legislative frameworks to enable secure low-carbon energy supplies and fair competition in the energy markets. The Energy Act 2011 amends existing powers in the Gas Act 1986, Electricity Act 1989 and the Utilities Act 2000 to enable the Secretary of State to create a new ECO that will:
Take over from existing obligations to reduce carbon emissions (the Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP)), which expire at the end of 2012.
Work alongside the Green Deal finance offer by targeting appropriate measures at those households likely to need additional support - in particular those containing vulnerable people on low incomes and in hard-to-treat housing.
The Act also includes measures to:
- Improve energy efficiency and energy security
- Enable low-carbon technologies
- Extend the role of the Coal Authority
- Repeal the Home Energy Conservation Act 1995 (HECA) in Scotland and Wales.
ECO Obligations
A, in respect of a suppliers carbon emissions reduction target
- 0.104 mtC02/yr for the carbon year commencing - 1st October 2012
- 0.208 mtC02/yr for the carbon year commencing - 1st April 2013
- 0.208 mtC02/yr for the carbon year commencing - 1st April 2014 or
B,in respect of a suppliers home heating cost reduction target
- £0.68bn for the carbon year commencing - 1st October 2012
- £1.36bn for the carbon year commencing - 1st April 2013
- £1.36bn for the carbon year commencing - 1st April 2014 or
