Mitch Gee, Executive Chairman
Meeting with BEIS – 12 February 2018
The ECO 3 consultation is almost upon us. It is expected to be circulated at the end of February with a six-week consultation period. As soon as it is published we will circulate to members.
INCA is delighted to announce that Richard Mellish, Deputy Director at the Department for Business, Energy and Industrial Strategy (BEIS) will speak at our members’ meeting. It will be held at the Hilton Metropole in Birmingham, close to the NEC on 22 March. At this meeting, we would like INCA members to have the opportunity to ask questions, and provide the government with feedback on the consultation. If the timings proceed as expected, members should have a couple of weeks to digest the papers and prepare your questions or comments.
What do we know already?
1. ECO 3 will not contain any CERO, and funding will be targeted at the fuel poor. The eligible pool will be widened to 6.5 million, including those on disability benefits and child benefits under a certain income threshold. Flexibility will be increased to make it easier to combine funding with other forms of funding or capital investment. This will include 50% for infills and 10% allowance for referrals. In addition, BEIS is looking to simplify rules around high rise, which are currently complex.
2. In ECO 3 there will be a solid wall minimum and the size of this will no doubt be a point of contention. There is obviously a budget cost for the deliverance of ECO, and we know that though solid wall is one of the more easily accessible measures in the fuel poor sector, it is also one of the most expensive. The balance of measures will be critical, and the input and views of INCA members is important.
3. BEIS will be trying to drive innovation by introducing an uplift on carbon for new innovations in the sector. This may concentrate the minds of system holders.
4. There will be reference to ECO past 2022 as there is a real desire to iron out the peaks and troughs in the market. A cap will remain on boilers but may be increased if it can be linked with insulation measures.
5. There will be reference to the quality mark to continue to drive up quality of installation.
6. There will be an allowance for carry over but this will also be capped.
Local authorities who have provided a statement of intent to work with utilities to deliver ECO.
If you have any comments you wish to make regarding your views on the direction of ECO, please get in touch.