Scottish Government ECO newsletter #015 – 09 December 2013
This Scottish Government newsletter on ECO activity features updates on the recent
announcement by the UK Government on changes to ECO and the Green Deal. There are
also updates on ECO and Green Deal activity and on the Scottish Government’s HEEPS
schemes.
UK Government announcement on ECO
The UK Government has announced plans for changes to ECO. These are subject to
consultation which is expected early in 2014. These changes are outlined in a DECC blog
entry and summarised below:
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The largest of the ECO obligations, the Carbon Emission Reduction Obligation (CERO)
will have its March 2015 target reduced by 33%
The other ECO obligations, the Carbon Savings Communities Obligation (CSCO) and
Home Heating Cost Reduction Obligation (HHCRO) will have no change to their
current March 2015 target
There will be targets of an equivalent scale for all obligations for the period April
2015 to March 2017
CERO will be amended so that there is an increased focus on lower cost measures
(such as lofts and normal cavity walls) with a minimum target of 100,000 Solid Wall
measures across Great Britain to 2017
Connections to District Heating Systems will be a primary measure under CERO
A requirement for greater transparency on how Energy Companies pay for energy
efficiency measures
The Warm Homes Discount will be funded through central resources rather than
energy bills
Alongside these changes the UK Government also announced incentives to fund energy
efficiency measures, in total worth £540 million. We are awaiting further detail on how
these would operate.
These changes will have impacts for Scotland and the Deputy First Minister has said:
“The UK Government’s plans to reduce energy bills are short-term measures which do not
address the underlying long-term issue of fuel poverty.
The UK Government’s changes to the ECO will significantly reduce expenditure in Scotland
for energy efficiency and fuel poverty measures. This will impact hardest on our most
vulnerable households.
In Scotland’s Future we made our position clear about how ECO and the Warm Homes
Discount would be funded in an independent Scotland. These costs would be met by central
resources. By passing on these cost reductions to their consumers, energy companies will be
able to reduce their bills by around 5 per cent – approximately £70 every year. We are also
committed to continue in an independent Scotland the overall levels of funding available to
tackle fuel poverty - currently at least £200 million a year.
This is a fairer way of paying for energy efficiency measures than through people’s energy
bills and would enable us to design a new means of funding, delivering energy efficiency
improvements to Scottish homes that is fairer and better suited to our needs.”
Scottish Government officials will contact Local Authorities to discuss implications for Home
Energy Efficiency Programmes for Scotland : Area-Based Schemes.
UK Government announcement on Green Deal
The UK Government also announced changes to Green Deal. DECC state that these changes
are designed to make the Green Deal more straightforward and less time-consuming for
families who want to improve their homes and benefit from lower bills in future. The list of
changes is set out in the blog entry linked above and also in their press release.
HEEPS: national schemes update
Our Doug the caterpillar marketing campaign is now in full flow. TV adverts will take a break
over Christmas and then resume for a few weeks in January. Field activity in local shopping
centres is going well and there are lots more venues planned for early next year. This has
all resulted in an increase in the number of calls coming into the Home Energy Scotland
hotline (0808 808 2282) and has impacted positively on referrals for both Affordable
Warmth and Energy Assistance Scheme.
ECO and Green Deal monthly statistics
The latest set of ECO and Green Deal statistics were published on 19 November. These
figures are for Great Britain and do not contain breakdown per country or region. They
show that there have been 311,250 measures were installed under ECO up to the end of
August, dependant on further checks by Ofgem. The number of measures installed in
September was 58,497. The majority of all measures installed to date were for cavity wall
insulation (33%), loft insulation (32%) and boiler upgrades (27%). Solid wall measures
accounted for 4% of total measures. The full figures can be accessed here.
Scottish Green Deal & Green Homes Cashback figures
By the end of October, 11,930 Cashback vouchers had been issued in Scotland and, of these,
2,495 vouchers had been paid (following installation of measures) with a value of £1.4
million.
Further information, including the breakdown of measures installed under the Scheme, is
available here.