Domestic Energy Efficiency Supplier Obligation
A new Domestic Energy Efficiency Supplier Obligation (DEESO) will be introduced in April 2017, the Government has announced.
This will replace the current Energy Company Obligation (ECO) which includes the Affordable Warmth Scheme.
DEESO Replaces ECO
Full details of the Domestic Energy Efficiency Supplier Obligation have not been released yet but it will be aimed more directly at tackling fuel poverty than ECO was. Referred to as the third phase of ECO, the Domestic Energy Efficiency Supplier Obligation aims to upgrade the energy efficiency of around 200,000 homes per year. These measures should save up to £300 off the annual energy bills for those households which qualify for assistance.
The Domestic Energy Efficiency Supplier Obligation is expected to run for five years from April 2017 to March 2022. DEESO is intended to contribute to delivering on the Government’s commitment to help one million more homes fight fuel poverty during the course of this Parliament.
The costs of the ECO scheme are added to household energy bills by your energy supplier. The Domestic Energy Efficiency Supplier Obligation has a budget of £640m a year compared to around £800m a year currently being spent on energy efficiency upgrades via ECO. Introduction of the cheaper Domestic Energy Efficiency Supplier Obligation should reduce the projected cost of green policies on the average household energy bill by about £30 per year.
ECO Could Be Extended For One Year
The Government is planning to consult on the terms of the Domestic Energy Efficiency Supplier Obligation scheme early in 2016. However a decision whether to extend the current ECO scheme for a transitional year, is also under consideration. If ECO is extended for another year it is likely that some changes will be made to simplify it and to reduce the costs of compliance. The Domestic Energy Efficiency Supplier Obligation would then be introduced in April 2018 and last for four years.
Because less money is being pumped into the Domestic Energy Efficiency Supplier Obligation (DEESO) than the Energy Company Obligation (ECO), householders are urged to apply for assistance before ECO finishes.
You can apply for a boiler grant or a free boiler with the ECO Affordable Warmth Scheme by completing the online form on this page.