In its ECO3 Improving consumer protection consultation, the Department for Business, Energy and Industrial Strategy (BEIS) consulted on making changes to the current ECO3 scheme, (the ‘BEIS consultation’). This consultation closed on 6 August 2019 . BEIS propose to implement these changes through the draft Electricity and Gas (Energy Company Obligation) (Amendment) Order 2019 (the ‘ECO3.1 Order’).
We are consulting on some of the administrative changes required in order to deliver our functions under the ECO3.1 Order. Based on our experience in ECO3, certain areas of the scheme require clarification; this document also outlines and consults on Ofgem’s emerging position on these specific issues.
We have also published draft ECO3 Guidance: Delivery, ECO3 Guidance: Supplier Administration and ECO3 Deemed Scores. These documents have been issued to provide clarifications on the previous versions and updates on our wider administrative approach. They apply to all measures installed on or after 1 January 2020, unless otherwise stated. Please note, we are not consulting on these documents.
Please note there is a minor change in section 2.32 (page 19) of the ECO improving consumer protection consultation. It should read as follows:
“Ofgem will continue to collect appropriate guarantee codes as part of a measure notification in order to assess whether the measure should receive the standard applicable lifetime. This also applies to all UFI and RIRI measures which will require an appropriate guarantee. Ofgem intend to check that all UFI and RIRI measures have an appropriate guarantee code once the ECO3.1 Order comes into force on 1 January 2020, however this will not be a mandatory requirement until 30 June 2020. From 1st Jan 2020 all ECO measures (except those detailed in section 2.10 of the consultation) must have a minimum of 2 year warranty. Therefore all RIRI and UFI measures will be required to have a 2 year warranty from 1 January 2020 till 30 June 2020. Where the UFI and RIRI measures are completed on and after 1 July 2020, they must be notified to Ofgem with an appropriate guarantee code to receive the relevant standard lifetime.”
How to respond
This consultation will be open for four weeks from 5 November 2019 to 3 December 2019.
We’ve asked for your feedback in each of the questions throughout. Please respond to each one as fully as you can.