Future ECO timelines The following is still an indicative timeline as we are awaiting decisions from ministers Autumn 2017 – need to decide what we are consulting on in October to enable the rest of the below timeline January to February 2018 – ECO3 consultation published March 2018 – analysis of consultation responses and drafting of regulations May 2018 – consultation response published with final Impact Assessment End May – finalise regulations October 2018 – scheme begins For LAs: We would propose LA set out in declarations address and reasons for determining them as eligible Government Guidance to ensure targeting the right households Other ways for monitoring LAs are meeting the intent: requiring the local authorities to have set out publicly in advance the method by which they will identify and engage households and any monitoring or auditing processes in place for this; and/or requesting that local authorities publish an annual report on how they have identified and engaged households. Questions: How can we design the mechanism in a way that achieves our fuel poverty targeting and is cost-effective? We are interested in hearing views on how DECC could encourage LAs to deliver to the ‘right people’. Any good practice in targeting fuel poverty that we can capitalise on? How can we avoid a race to the bottom?) How could we monitor how LAs are using the flexibility How could the mechanism be designed so that LAs across the country get involved? How would the process work successfully? How can we minimise fraud in the supply chain? How can we make the most of links of links with European funding? Schemes Allow other parties – especially where LAs may not have the capacity etc Approval process – criteria set out in legislation Ofgem satisfied about robust processes to identify and monitoring/auditing processes in place Limited to certain types of org? Two options: Scheme published so that an supplier can use it? Involve a single supplier in each scheme from the start

Future ECO - what we need Would need to know by December what is going to be included under Quality Mark (ahead of consultation) Absolutely need something referenced in regulations – end May. Current regulations reference PAS2030 If Quality Mark includes all the updated standards we need for ECO then we could reference that (looks like ideal scenario) Otherwise would need specific standards Would need completely clarity e.g. what it includes, start dates, web links to reference Would also need cut-off date for current standard QM was replacing

ECO priorities (Oct 2018)l Workstream Recommendation Priority Code of Conduct/Consumer Protection Code of Conduct Guarantees Redress Mis-selling High Medium Quality Mark (Envelope) Governance/ Framework High* Codes of Practice/Standards (also Design) PAS 2030 (including design) Umbrella standard Compliance and Enforcement (also Data Ethics/Privacy) Technical monitoring (to Ofgem reqs) Data sharing Skills Skills in PAS 2030 Fabric and Insulation (also Design) Design required for PAS 2030

ECO priorities cont. (Oct 2018) Workstream Recommendation Priority Advice and Guidance (also Data Ethics/Privacy) Data Warehouse Information Hub Medium/High Medium Home Energy Technologies Heating Technologies