Green Deal and ECO

ECO Energy Company Obligation £1.3bn per annum Green Deal Home Heating Cost Reduction Obligation (previously Affordable Warmth) £350m/yr Carbon Saving Communities Obligation = 20% of Carbon Saving £190m (15% of which has to be delivered in rural low-income households - settlements with a population size under 10,000) Green Deal and ECO Carbon Emissions Reduction Obligation £950m/yr

Green Deal The customer receives a package of energy efficiency measures at no up-front cost from a ‘Green Deal provider’. The cost of the measures is paid back over the long term (for example, 25 years) through repayments made via energy bills. The Green Deal will include owner-occupiers, the private and social rented sectors and the commercial sector. Green Deal There are now 45 available measures stem/uploads/attachment_data/file/48406/ 5504-which-energy-efficiency- improvements-qualify-for-g.pdf

ECO Energy Company Obligation £1.3bn per annum Carbon Emissions Reduction Obligation £950m/yr Carbon Saving Communities Obligation = 20% of Carbon Saving £190m (15% of which has to be delivered in rural low-income households - settlements with a population size under 10,000) ECO will act to help subsidise work that does not meet the Golden Rule, and fully fund certain eligible households for measure that reduce energy costs. The Energy Company Obligation will have a split of 75:25 It has three obligations ECO Home Heating Cost Reduction Obligation (previously Affordable Warmth) £350m/yr

Reduce CO2 emissions by 0.52MtCO2/yr The level of the Carbon Saving Obligation will be set at 75 % of the overall Energy Company Obligation Investment of £950m per annum (Once the Carbon Saving Communities Obligation is taken into account this will be £760m per year). The Carbon Saving obligation will be open to all regardless of ability to pay. Carbon Emissions Reduction Obligation ECO Energy Company Obligation £1.3bn per annum Carbon Emissions Reduction Obligation £950m/yr

20% (190mil) of the Carbon Reduction has been diverted to the Carbon Saving Communities Obligation It will run much as CESP did Only for insulation measures Will target disadvantaged communities Carbon Saving Communities Obligation ECO Energy Company Obligation £1.3bn per annum Carbon Saving Communities Obligation = 20% of Carbon Saving £190m (15% of which has to be delivered in rural low-income households - settlements with a population size under 10,000) A Rural Safeguard has also been put in place 15% of the £190mil (approx 28m) will be required to benefit rural households. Carbon Emissions Reduction Obligation £950m/yr

Funding amounts and eligibility remain unchanged from the consultation Any measure that reduce costs will be allowed NEA believes the funding levels to be inadequate. Home Heating Cost Reduction Obligation ECO Energy Company Obligation £1.3bn per annum Home Heating Cost Reduction Obligation (previously Affordable Warmth) £350m/yr Hills review thinks it should be at least 50% to prevent it being regressive and knocking further households into fuel poverty

ECO objectives & interaction with Green Deal Green Deal Finance ECO Subsidy ECO – Carbon Emissions Reduction Obligation - The next most cost-effective measures, combination of ECO subsidy and GD finance Green Deal Measures fully meeting the Golden Rule ECO – Home Heat Cost Reduction Obligation - Measures providing affordable warmth to the vulnerable ECO - Carbon Saving Communities Obligation Obligation – insulation measures in low-income communities – funded through the Carbon Savings Obligation.

Key points (to the end of March) 9,268 GD Assessments had been lodged to date, up from 1,803 at end of February (with 7,465 in March alone, compared to 1,729 in February). 108 GD Assessor Organisations and the 1,003 GD Advisors they employ had been accredited, up from 77 and 618 at end February respectively £68.9 million worth of contracts had been let through the ECO brokerage system, compared to £26.9 million at end February. (Source: energy-company- obligation-eco-monthly-statistics-april-2013) Only about 100 people have signed up to Green Deal plans and are paying back loans Only three are actually paying back a loan through their electricity bill. Others are paying back through other means such as monthly direct debits. (Source: The ENDSReport, May 15 th 2013) Green Deal and ECO update (March 2013)