Price Cap – Consultation on the Energy Company Obligation scheme allowance methodology in the default tariff cap
- Closed (awaiting decision)
- Closed (with decision)
This consultation sets out our proposal for calculating the Energy Company Obligation (ECO) allowance from cap period eight onwards. ECO is a government programme to help tackle fuel poverty and reduce carbon emissions by delivering energy efficiency measures in the least energy efficient homes across GB.
We propose to use the latest available information from BEIS on the ECO4 scheme costs at the time we set the cap as the input to estimate the ECO allowance. We also propose to correct any material under or over-allowance for cap period eight in the event that the draft ECO4 legislation is not approved by Parliament, BEIS decides to not introduce ECO4, or the government response and updated impact assessment indicate a material change in the costs of the scheme.
We are seeking written responses by 17 December 2021.
Update 04/02/2022: We have now published responses to this consultation below on this page.