Lisa SimsSocial Sales Manager

Energy Company Obligation

The make up of ECO

ECO

Home Heating

Cost Reduction Obligation

Carbon Saving Obligation

Communities Carbon Saving

Obligation

Rural

ECO – Carbon Emissions Reduction Obligation (CERO) (all E.ON figures based on 15% share)

• Obligated Target 2.655MtCO2

• Eligibility: All to support Green Deal Golden Rule

• Measures Permitted: “Gateway” measures of Solid Wall and Hard to Treat Cavity Wall Insulation

• Other measures: Loft Insulation, DP, District Heating

• DECC budget anticipation (annual) £114m

• Current installing capacity in UK too small

What do we know so far?

ECO – Carbon Savings Communities Obligation (CSCO)

• Obligated Target 0.75MtCO2

• Eligibility: Must be in designated LSOA

• Measures Permitted: All insulation and District Heating

• DECC budget anticipation (annual)£28.5m

• Current Views: Extension to CESP activity

• Rural Subset for settlements of >10,000

What do we know so far?

ECO – Home Heating Cost Reduction Obligation

• Obligated Target £0.63bn

• Eligibility: Must be private households in SPG “Plus” sector

• Main Measures: CWI, LI, SWI, Broken boiler replacements or repairs.

• DECC budget anticipation (annual) £52.5m

• Current Views: DECC budgets are significantly underestimated

What do we know so far?

•Started October 2012 – consultation – responses by 25 January 2013

•Intended to be a 10 year scheme, though initial phase runs through to March 2015 (2¼ years)

•£1.3bn estimated annualised cost, expected to be split:

• 75% Carbon Savings

• 25% Affordable Warmth

ECO timings

• Full market approach, targeted at Gateway and key measures.

• Work with internal and external Green Deal providers to provide cost efficiency.

• Utilise brokerage if cost effective route to delivery

• Learn from CESP and CERT

• Growth of existing CESP relationships and sites

• New partnerships

E.ON’s Approach to ECO

E.ON’s steps into ECO

•Delivery Team expansion – Direct as part of national network or via GDP route

•Assessment Team expansion – Direct as part of national network or via GDP route

•Expansion of domestic heating capacity

•Home Heating Cost Reduction Obligation –Relationship Managers

•Carbon Savings – Business DevelopmentManagers

Making it work – Externally

• Lessons from CESP

• Trial proposals from multiple potential partners in all sectors

• Retaining key skilled partners

• Trial budgets for 2012 up to £25m

• IT system capability from October 2012

Making it work – Early

• Not just a funding provider

• Nottingham City Homes and NEP

• Aligning programmes

• Creating apprenticeships – working with local

SME’s

• Training and up-skilling local people

• Community amenities – play area, allotments

community halls

• Age UK

• Schools Programmes

Working in Partnership

• ECO is a major growth from CERT and CESP

• Positive lessons from CERT & CESP must be adapted

• ECO Schemes – Affordable Warmth and Carbon

• Off Gas Properties

• Long term Partnerships are desirable

If you think you have a role in ECO then E.ON are open for business.

Summary

Questions?