Energy Comapny Obligation: Supply Chains
The question
To ask the Secretary of State for Energy Security and Net Zero, what steps the Government is taking to ensure that (a) installers and (b) other businesses within the ECO supply chain are paid (i) appropriately and (ii) promptly for completed works.
Answered by Martin McCluskey
As the administrator for the Energy Company Obligation (ECO), Ofgem is responsible for overseeing obligated supplier compliance through monitoring, audits and counter-fraud processes across the supply chain.
Payment terms, retentions and wider commercial practices are primarily governed by private contracts between suppliers and contractors. The government does not intervene in such arrangements.
The recently published Small Business Protections Bill (formally known as the Commercial Payments Bill) will also put a clear duty on large firms to pay smaller suppliers on time and giving small businesses the certainty they need to keep investing, supporting jobs and growing their communities.
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