The Department for Business, Energy and Industrial Strategy (BEIS) have, on 28th November 2022, published their ECO consultation document which sets out proposals for the Energy Company Obligation (ECO), specifically in respect of the new ECO Plus.

ECO is a programme to deliver energy efficiency measures in homes across Great Britain. ECO+ will be an addition to the current ECO4 scheme to deliver rapid installation of energy efficiency measures to households, including:

• those on the lowest income
• those in the least energy efficient homes in the lower council tax bands.

This consultation invites responses from a wide range of stakeholders, including:

• consumer representatives
• energy suppliers
• those with an interest in energy efficiency and fuel poverty policies

The consultation covers ECO+ for the period spring 2023 (scheduled start) to March 2026 (initial closing date).

ECO Plus is designed to expand the existing ECO4 scheme by opening a funding mechanism up to a wider "able to pay" market. It will work on the existing ECO4 principles and will mirror the scheme as much as possible in order to get ECO Plus to market as quickly and efficiently as possible. Initially, the main target groups will be low-income households, the vulnerable and those living in the least efficient homes which fall into lower Council Tax bands. ​Over 400,000 potential homes have been identified for low cost measures delivering energy savings of over £300 per year per household.

It's a step in the right direction and an initiative that the industry has been lobbying for some time. The scheme is scheduled to officially kick off in April 2023 although BEIS intend to push for early adoption if possible. It will initially run for 3 years with a value of £1bn over this period.

Apart from the target group the main difference with ECO Plus is that it will not take on a whole house approach as the existing ECO4 scheme does, instead it will focus on single, low-cost measures designed to deliver maximum impact quickly and efficiently. The main measures will be loft insulation, cavity wall insulation and smart heating controls. Other single measures will be eligible but there will be a contribution requirement and so these will likely be in a minority to start with.

Two documents have been published:

1. The consultation document itself: Energy Company Obligation ECO+: 2023 – 2026: Access The Consultation > 
2. ECO+ Consultation Stage Impact Assessment: Access The Assessment >

The consultation consists of a 75 page document which contains 80 specific questions you will be asked to respond to. This is your chance to help design and shape the scheme so we urge you to study the consultation and respond accordingly but please don't delay as the consultation closes on 23rd December 2023.

Energy Company Obligation ECO+: 2023 – 2026: Access The Consultation >