ECO1 and ECO2
The first phase of the Energy Company Obligation (ECO), known as ECO1, ran from January 2013 to March 2015. This placed obligations on larger energy suppliers to deliver energy efficiency measures to domestic premises in Great Britain.
The next obligation period, known as ECO2, launched on 1 April 2015 and ended on 31 March 2017.
The government has taken action to extend ECO2 until 2018. We have termed this period ECO2t. You can view a summary of the changes made on the government website.
Beyond ECO2t the government has confirmed that a supplier obligation will run until 2021-22 at least. Any questions relating to future schemes should be directed to the Department for Business, Energy and Industrial Strategy (BEIS).
The Carbon Emissions Reduction Target (CERT) ran between 1 April 2008 and 31 December 2012. CERT required larger gas and electricity suppliers to achieve targets for reducing carbon emissions from domestic premises in Britain.
The Gas and Electricity (Carbon Emissions Reduction) Order 2008 and subsequent amendments set out the levels of savings required and the way in which these were to be achieved.
Energy suppliers were required to achieve an overall target of 293 million lifetime tonnes of carbon dioxide (Mt CO2) by 31 December 2012. Energy suppliers achieved 296.9 Mt CO2.
The Community Energy Saving Programme (CESP) ran from 1 October 2009 to 31 December 2012. CESP was created as part of the government's Home Energy Saving Programme.
The Department of Energy and Climate Change (DECC) set an overall carbon emissions reduction target of 19.25 Mt CO2. This was to be met by requiring gas and electricity suppliers and electricity generators to deliver energy saving measures to domestic consumers in specific low income areas of Britain. This obligation was placed on all licensed gas and electricity suppliers that had at least 50,000 domestic customers and all licensed electricity generators that had generated on average 10 TWh/yr or more in a specified three-year period.
CESP was designed to promote a 'whole house' approach and to treat as many properties as possible in defined geographical areas selected using the Income Domain of the Indices of Multiple Deprivation (IMD) in England, Scotland and Wales.
Energy companies were required to achieve an overall target of 19.25 Mt CO2 saving by 31 December 2012. Energy companies achieved a saving 16.31 Mt CO2, almost 85% of the overall target.
EEC and EESoP
The Energy Efficiency Commitment (EEC) scheme ran from 2002 to 2005 and the second scheme (EEC2) ran from 2005 to 2008. The forerunner of EEC was the Energy Efficiency Standards of Performance (EESoP), which ran from 1994 to 2002. EESoP1, EESoP2 and EESoP3 ran respectively from 1994 to 1998, 1998 to 2000 and 2000 to 2002.
EESoP was jointly developed and managed by us (initially Offer) and the Energy Saving Trust.
EEC, while differing in several important ways, built on the success and basic methodology of EESoP.
Both EEC and EESoP had an emphasis on disadvantaged customers. The majority of measures in EESoP1 and around two thirds of supplier expenditure in EESoP2 and EESoP3 focused on disadvantaged customers. Similarly, EEC2 had a requirement for at least 50 per cent of the target to be met in relation to Priority Group consumers, defined as those in receipt of certain income-related benefits and tax credits.