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Deemed scores for the next phase of the Energy Company Obligation

The Energy Company Obligation (ECO) is a Government scheme which requires larger energy companies to deliver energy efficiency measures to domestic premises in Great Britain. The current scheme runs from 1 April 2015 to 31 March 2017 and is referred to as ECO2. This consultation sets out the proposed approach to implementing a system of deemed scores for use in the ECO scheme from 1 April 2017, if introduced in legislation.

Objectives of the consultation

Under the current scheme ECO2, carbon and cost savings are calculated using the Standard Assessment Procedure (SAP) which requires a whole house survey in order to collect the numerous data inputs relating to the property where a measure is to be installed. This approach results in measure savings which are bespoke to the property in which the measure was installed.

Government intends to consult on proposals for the successor to ECO2, which will include a proposal to move from the current scoring approach to deemed scores. The change to deemed scores would entail the use of a finite set of scores that reflect the savings expected from different measures in different properties, based on a limited number of simple inputs.

Ofgem has developed the proposal for deemed scores on the basis that if they are introduced from April 2017, the ECO supply chain will have seen the likely mechanism for calculating scores with enough lead-in time before their implementation.

This consultation provided an opportunity for stakeholders to comment on the proposed deemed scores, the methodology and assumptions used to generate the deemed scores, and proposed approach to introducing new scores during the scheme. The consultation closed on  8 July 2016.

Supporting papers

To download documents that supported this consultation, please follow the links below.

CIBSE response

CIBSE believes that releasing this consultation on deemed scores before the ECO: Help to Heat consultation appears to be counter-intuitive. The latter also consults on scoring of measures but in a broader context. A coherent approach to the reforms should be taken to ensure that the successor to ECO2 is fit for purpose, and that the scoring is appropriate to the adopted scheme.

CIBSE understand that calculating the impact of energy efficiency measures at a household level is, by its nature, a difficult process but making too many assumptions could lead to poor data and sub-optimal outcomes.

To read the full CIBSE response, please follow the link below.

Results of the consultation and next steps

The Government published its response to the consultation on deemed scores for ECO2 scheme on 6 October 2016. This document summarises the responses received from stakeholders and details the Government final position. If deemed scores are introduced in legislation the approach outlined in this document will apply to relevant measures installed under the ECO scheme from 1 April 2017.

To read the consultation response and the amended methodology document, please follow the links below.

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