Energy Company Obligation
The question
To ask the Secretary of State for Energy Security and Net Zero, what funding his Department plans to allocate to Phase 4 of the Energy Company Obligation 4 (ECO4) scheme.
Answered by Miatta Fahnbulleh
ECO4 is not a Government funded scheme, but a legal obligation placed on energy suppliers to delivery energy efficiency support to eligible households. The obligated suppliers fund the upfront costs of those installations and recoup the funds through their domestic consumers’ energy bills under the energy price cap.
The legal obligation is divided across energy suppliers and based on their respective shares of the domestic gas and electricity market. Energy suppliers are permitted to deliver their obligation at their preferred pace throughout the scheme. The total value of ECO4 is £4 billion across the four years of the scheme.
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