Price Cap – Decision on the Energy Company Obligation scheme and Warm Home Discount scheme allowance methodologies in the default tariff cap



In November and December 2021, we consulted on our proposals for calculating the Energy Company Obligation (ECO) and Warm Home Discount (WHD) allowances in the default tariff cap from cap period eight (April 2022 – September 2022) onwards. We have now considered stakeholders’ responses and are publishing our decision.

We have decided to use the latest available information from BEIS on ECO4 and WHD scheme costs as an input to calculate the ECO and WHD allowances respectively. We have also described our decisions on how we would correct for any material under or over-allowance of these costs for cap period eight in the event the ECO4 or WHD scheme does not proceed, the government response and updated ECO4 impact assessment or WHD target spend indicate a material change in the costs of these schemes.