Utility Week

UTILITY WEEK | 17TH - 23RD NOVEMBER 2017 | 27 Customers PROGRESS TOWARDS OVERALL ECO2 OBLIGATIONS The chart gives an overview of energy companies' progress towards their targets in the current Energy Company Obligation period (Eco2). This runs from 1 April 2015 to 30 September 2018. From 1 April 2017, the energy companies' progress towards their targets includes ECO2t obligations. at the current level of funding. Wade is not impressed. "Not only is the level of invest- ment on behalf of fuel poor households inadequate, but this approach also fails to set the conditions that will develop the mar- ket for energy efficiency investment among able to pay households." The low level of funding for the extended years of Eco is "disappointing" and "one of the low points of the strategy", says Twinn. David Blakemore, a member of the gov- ernment's Committee on Fuel Poverty, is more positive, saying that the strategy shows the government has long-term plans on fuel poverty, and this should drive innovation in energy efficiency products, which will hope- fully become cheaper and less disruptive to install. Dieter Helm's take Some believe government should review its long-practised approach of dealing with fuel poverty and energy efficiency in combination. In his review of the cost of energy, profes- sor Dieter Helm stated that the government confuses energy efficiency with fuel poverty, and that the cost of Eco should be spelt out in energy bills. Energy efficiency, meanwhile, should be dealt with through standards, rather than taxes and levies, he says. Rosenow believes Eco has not been very successful in identifying the right people, and that many of those in need have fallen through the net. "Energy efficiency should be dealt with through a general policy, which is not just open to the fuel poor, and there should be a dedicated programme funded through general taxation to help the fuel poor," he says. Nigel Dewbery, director of obligation delivery at Eon, says that government policy should shi towards recognising that energy efficiency is for all, not just the fuel poor. The company advocates a nationwide scheme to insulate homes, with tax incentives and reg- ulation to incentivise households. Twinn points out the sense in matching incentives for the whole housing market with those for the fuel poor. "Fuel poverty policies must be part of a wider programme to make sure you're not chasing your tail in that, when the fuel poor move home, they end up in fuel poverty again," he says. Although most agree that the Clean Growth Strategy demonstrates a clear change in rhetoric from government, Rosenow cau- tions that the hard work is still to come. "The real work now starts in persuading the government to put in place the regulation needed. That's a long and difficult process," he says. Catherine Early is a freelance journalist Improving the energy efficiency of privately-owned homes The government is asking for ideas on: • new methods of financing to reduce the up-front cost of energy efficiency, tailored to different customer groups. These could include equity loans, mortgage exten- sions and low-interest loans; • price signals to make more efficient properties more financially attractive; • improving consumer awareness of the benefits of energy efficient products and technologies; • involving those who benefit financially from energy efficiency to be involved in delivering it. Examples include DNOs, NHS bodies and mortgage lenders; • encouraging innovation in energy efficiency products; • improving skills in the supply chain. The government is proposing allowing installers to share best practice and access advice through the Energy Savings Advice service. This chart shows measures notified to the end of August 2017 and approved by the end of September 2017 as a percentage of phases 1, 2 and 3 of Eco2. All surplus actions from Eco1 to Eco2 have been approved and are included in the chart. Surplus actions, like Eco2 measures, can be re-elected to different obligations. While the total of surplus actions will not change greatly, Ofgem expects the percentage attributed to each obligation will change in the future. Measures that count towards PSWMR are from both Eco1 and Eco2. Phase 1 of Eco2 ran from 1 April 2015 to 31 March 2016. Phase 2 of Eco2 ran from 1 April 2016 to 31 March 2017. Phase 3 of Eco2 (Eco2t) runs from 1 April 2017 to 30 September 2018. Types of measure • Carbon Emissions Reduction Obligation (CERO including CERO-Rural) • Carbon Saving Community Obligation (CSCO includ- ing CSCO-Rural) • Home Heating Cost Reduction Obligation (HHCRO) • Home Heating Minimum Requirement (HHMR) • Provisional Solid Wall Minimum Requirement (PSWMR) CERO (19.70 MtCO2) CERO - Rural (1.09MtCO2) CSCO (6.00MtCO2) CSCO - Rural (0.90MtCO2) HHCRO (£6.46bn) HHMR (£2.10bn) PSWR (5.40MtCO2) 0 25 50 75 100 125 150 175 200 Progress towards obligation (%) Source: Ofgem. Information correct as of 1 October 2017 Approved surplus action % Approved % Notified %

• Cover