ECO should be replaced by interim scheme

Experts have warned that a plan needs to be implemented by the end of this year to replace the Energy Company Obligation at its end in March 2017.

Energy efficiency is essential to achieving long term reductions in consumer energy bills, reducing carbon emissions and easing the pressure on security of supply. But without any clear and early successor, uncertainty arises for consumers and businesses.

The CBI has recommended an interim scheme for two years from 2017 whilst a longer term policy is introduced. The interim scheme would have the following benefits:

1. More closely targeted at fuel poor and low income households.

2. Reduction of “red tape” to ensure quality checking and reporting is clear and cost effective.

3. A carefully managed transition to minimize and risks associated with change.

The focus of the longer term scheme would be to simplify targets and ensure there are alternative funding options to make energy efficiency improvements, particularly for fuel-poor or low-income households.