Energy UK has published proposals for a new energy efficiency scheme which would help households reduce their energy bills in the long-term, whilst strengthening the UK’s security of supply and boosting economic growth.
In its new report, ECO+: The energy industry’s proposal for powering up the domestic energy efficiency market, the trade body outlines how energy suppliers could deliver Government-subsidised measures, such as loft, cavity wall and solid wall insulation, creating in the long-term a self-sufficient and commercial market for energy efficiency.
The proposal borrows from the existing Energy Company Obligation (ECO) which since April 2013 has delivered almost 2.7 million measures to UK households. The average saving for homes improved under ECO is £290 per year1. ECO4, which commenced this year, will reach 450,000 hard-to-treat homes over four years.
Louise Shooter, Policy Manager at Energy UK, said: “Improving the energy efficiency of British homes must be part of our long-term plan to tackle the rising cost-of-living, strengthen the UK’s energy security and boost growth and jobs. Over 80% of UK homes are heated with gas, and the UK has some of the draughtiest housing stock in Europe. With energy bills set to rise further from October, substantial savings can be made by improving the fabric of our buildings around the UK.
“We also see this as an opportunity to stimulate market growth, by developing green finance products and unlocking the significant investment that will be needed to decarbonise Britain’s homes.”
The scheme would work by providing partial subsidies for building fabric energy efficiency measures such as cavity, loft and solid wall insulation, which would be available to owner-occupier households in Council Tax bands A to D. Consumers would access this funding via energy suppliers that would voluntarily choose to participate in the scheme. The subsidies would be funded through Government spending.
ECO+ is intended to build on the existing supply chain partnerships that energy suppliers have established through ECO, and would enable energy suppliers to support a wider range of their customers through the energy transition.
The full report is available to download here.