Energy Company Obligation (ECO)
ECO grants run alongside the Green Deal. ECO has the twin aims of reducing domestic carbon emissions and alleviating fuel poverty. It will be delivered by the larger energy companies (any with more than 250,000 customers). They are expected to invest £1.3bn a year (which they are expected to recoup through energy bills).
There are three obligation strands to ECO:
- Affordable Warmth (AW)- to reduce notional heating costs for low income and vulnerable consumers
- Carbon Saving Communities Obligation (CSCO) – to target insulation measures in low-income communities (including rural poverty
- Carbon Savings Obligation (CSO) – to reduce carbon emissions (mainly focusing on solid wall insulation and hard to treat cavity wall insulation) run in conjunction with Green Deal offers. The carbon savings obligation will be the key for most users of the Green Deal. It is expected to take up 75% of the funding. It will pay for insulation in those properties with difficult cavity walls (narrow cavity or over 2 storeys) or solid walls. It is accessed in exactly the same way as the Green Deal – see the section how it works.