Energy Comapny Obligation: Supply Chains
The question
To ask the Secretary of State for Energy Security and Net Zero, what oversight mechanisms are in place in relation to (a) payment delays, (b) retentions and (c) wider commercial practices by obligated suppliers within the ECO scheme supply chain.
Answered by Martin McCluskey
The Energy Company Obligation (ECO) is administered by Ofgem, which oversees obligated supplier compliance, including 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. Government does not intervene in such arrangements.
Disputes can be escalated through TrustMark’s complaints process and, where unresolved, to the Dispute Resolution Ombudsman. Separately, the Government is legislating to strengthen oversight of late payments through enhanced powers for the Small Business Commissioner, including dispute resolution and enforcement against poor payment practices.
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