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The ECO (Energy Company Obligation)

June 4, 2013

The ECO for the big six energy suppliers is also being launched in early 2013. It is in three parts:

Affordable Warmth Obligation

To provide heating and insulation improvements for low-income and vulnerable households (but social housing tenants are not eligible for affordable warmth).

There are complex eligibility criteria for this means-tested scheme. Call the Energy Saving Advice Service on 0300 123 1234 to check whether you might be eligible, and to apply if you are.

Carbon Saving Obligation

To provide funding to insulate solid-walled properties (internal and external wall insulation) and those with ‘hard-to-treat’ cavity walls.

This is not means-tested but can be used in conjunction with the Green Deal. The aim is to provide enough support to make these relatively expensive measures cost-effective.

Carbon Saving Communities Obligation

To provide insulation measures to people living in the bottom 15% of the UK’s most deprived areas. It is expected that this element of ECO will particularly benefit the social housing sector.

Through ECO, the government aims to help 230,000 low-income households or those in low-income areas. Of the expected investment by suppliers of £1.3bn per year, there will be a 75:25 split between the carbon and affordable warmth obligations.

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