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Energy Company Obligation (ECO) Funding

What is it?

A government scheme which legally obligates energy suppliers to fund energy efficiency measure installations (e.g. loft insulation) for homes in the UK. We are currently in phase 3 of ECO which runs until 31st March 2022. The purpose of ECO is two-fold:

  1. Reduce carbon related domestic energy emissions
  2. Reduce households’ energy bills & make them more comfortable at home

Who controls it?

The legislation is created by the government Department for Business, Energy and Industrial Strategy (BEIS) and administrated by Ofgem (The government regulator for gas and electricity markets in Great Britain).

Who is obligated to participate?

  • The scheme obligates energy suppliers (EDF, British Gas etc) with over 250,000 customer to take part.
  • The energy companies are obligated to help the eligible households regardless of who their energy supplier is. If you do want to see which suppliers are currently obligated click here.
  • Please note to reflect changes to the energy market, changes are taking place to reduce the threshold of the number of customers required for suppliers to become obligated. This is as the energy market is made up of more medium sized suppliers now rather than fewer larger suppliers.

How it works

  • Energy Suppliers are allocated a proportional share of the overall target according their market share of customers.
  • Energy suppliers use installers and sometimes ECO brokers to deliver the install measures to meet these legal obligations. They often do so with the partnerships with local councils and charities to help meet the targets.
  • Suppliers must achieve 15% of their total HHCRO obligation through delivery of measure to rural areas (rural sub-obligation).
  • They can delivery up to 25% of their obligation through LA flex eligibility.
  • They can also deliver up to 10% of their obligation through ECO innovation measures if they wish: innovative measures are encouraged by the government in recognition that it could help save carbon.

What Measures are Available?

This list is not exhaustive and you can access the full list of available measures here. But popular ECO measures are:

  • Cavity Wall Insulation
  • Loft Insulation
  • Electric Storage Heaters
  • Solid Wall Insulation
  • Flat Roof Insulation

Who the scheme applies to?

  • Households in the UK
  • All tenures: social renters, private renters and owner occupiers
  • Please note the funding levels vary per tenure, measure, EPC and more.

ECO Eligibility Routes

Route A: HHCRO Qualifying benefits Route B: ‘Flexible Eligibility’
  • Armed Forces Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • Child Benefit (on the condition that the household’s relevant income does not exceed the amount set out in Chapter 3 of our scheme guidance)
  • Constant Attendance Allowance
  • Disability Living Allowance
  • Pension Guarantee Credit
  • Income-related Employment and Support Allowance (ESA)
  • Income-based Jobseeker’s Allowance (JSA)
  • Income Support
  • Industrial Injuries Disablement Benefit
  • Mobility Supplement
  • Personal Independence Payment
  • Severe Disablement Allowance
  • Tax Credits (Child Tax Credits and Working Tax Credits)
  • Universal Credit
Flexible eligibility criteria is set out by your local council in accordance with the ECO guidance. Portsmouth City Council are participating and have a publically available Statement of Intent here. Please note this requires your local authority to be participating in this part of the scheme. It is voluntary and not every council is taking part.

 

Portsmouth City Council Flex eligibility:

A household is flex eligible if they meet one of the following in column A or one in column B.

Column A Column B
  • In receipt of any means tested benefit.
  • In receipt of disability-related benefit, including Disability Living Allowance (DI-A), Personal Independence Payment (PIP) or Attendance Allowance.
  • On the Energy Companies’ Priority Services register (those at most risk from the effects of a power cut).
  • Has a pre-existing long term chronic condition such as: heart disease, stroke or transient ischaemic attack (TIA), asthma, chronic obstructive pulmonary disease (COPD) or diabetes.
  • Has dementia, learning disabilities or mental ill-health that reduces individual’s ability to self-care
  • Has a health condition that can be exacerbated by living in cold including, cardiovascular conditions, ii. respiratory conditions (in particular, chronic obstructive pulmonary disease and childhood asthma), iii. mental health conditions, iv. disabilities, v. terminally ill, vi. suppressed immune systems (e.g. from cancer treatment or HIV)
  • Aged 60 and over
  • Is pregnant.
  • Responsible for a child under 15 living at the property.
  • A household will be eligible if they have an annual income of less than £35,000 after paying rent/mortgage, council tax and utilities bills. AND an EPC of ‘D’ rating or below. Where they property does not have an EPC a scoring matrix will be used.

 

OR

  • Standalone criteria: parkhome residents

Funding Levels

  • Some ECO measures are fully funded and some are not and many require a customer contribution.
  • This is through many carbon saving calculations.
  • If you would like a measure but would not be able to fund a customer contribution you can investigate any local grants available to you.

How to Apply

Step 1

If you are on a relevant HHCRO qualifying benefit outlined in route A yes proceed to step 3, if not proceed to step 2

Step 2 

If you are not on a HHCRO qualifying benefit you may be flex eligible. Check if your local council has an SOI. You can check who your local council is here.  If you are based in Portsmouth (PO1-6) check if you meet any of the eligibilities outlined in route B. If you meet this requirement, proceed to step 3.

Step 3 

  • Some ECO measures are fully funded, some are not and may require a customer contribution.
  • You can enquire at no cost.
  • If your chosen measure requires a customer contribution and you do not think you will be able to pay this you should explore local grants:
  • Check with your local council of any available grants. Find your local council here.
  • Check the local grant finder tool on the government’s Simple Energy Advice website

Step 4

There are several ways you can access the funding:

  • Find an installer with ECO funding access and contact them
  • Use MyEcoHome which is an online portal which checks if you are eligible for funding for larger energy efficiency measures (such as insulation and heating) under the government’s ECO scheme. You can enter details about your property and leave details to be contacted by MyEcoHome. Please note this is run by PCC but a third party company called Agility Eco.
  • Use the government’s Simple Energy Advice website or call them on 0800 444202
  • An installer may approach you, if they knock on your door or cold call you make sure to take a name and check their credentials first. You could also call your local council to check if they are recognised
If you wish a further explanation on any of the above you can contact the Switched On Portsmouth team on 02392 841 947 or 02392 841 084

Want to find out more?

If you have any questions about what you might be eligible for or if you just want to find out more about how we can help, just send us an email or give us a call