What We Know So Far About ECO4 and the Transition from ECO3 (Updated 28.02.2022)
The latest variation of the Energy Company Obligation (ECO4) has finally been confirmed. After rumours that the scheme would be scrapped, we are thankful that fuel-poor households will still have the financial support they need.
Due to the delay in the ECO4 scheme being approved, BEIS have introduced an ECO3 interim period to bridge the gap between the two schemes and ensure continued activity within the industry.
We understand that the exact rules for the ECO3 interim period will form part of the ECO4 response by BEIS towards the end of March, however we feel it is key that we provide all of what we know so far so you can start to understand how this may affect you from 1st April onwards. We will also issue a further update on the ECO4 rules in the coming weeks as we learn more.
ECO3 Interim Rules (subject to change)
- The interim period will be for a 3-month period running from 1st April 2022 until 30th June 2022.
- ECO3 scoring will be used to determine the funding for the ECO3 interim period.
- ECO3 Benefits will still be used for ECO3 Interim period and NOT ECO4 benefits.
- DWP Data Matching services won’t be available during the ECO3 interim period.
- LA Flex is largely unchanged. We are awaiting confirmation on whether the ECO4 process of issuing the declaration to Ofgem will be a requirement for the ECO3 interim period. We do know that any declarations signed prior to 1st April 2022 will not be accepted, these will need to be re-issued.
- No funding for condensing boiler to condensing boiler replacements.
- BEIS have confirmed that all In-efficient boilers during the ECO3 interim period will be treated as a secondary boiler and MUST be installed alongside a qualifying primary insulation measure. As a result these will be classified as B_Broken_Noncap and therefore receive the 200% uplift score.
- Scotland installs – At this stage, Scotland have not yet committed to ECO4 and, as a result, won’t benefit from the ECO3 Interim delivery. Of course, this may potentially have changed by 1st April, in which case we will update you as soon as we know.
ECO3 Interim Benefits
The benefit requirements have been updated and have now been reverted to ECO3 benefits. DWP however still won’t be available to process checks after 1st April.
a) Armed Forces Independence Payment
b) Attendance Allowance
c) Carer’s Allowance
d) Child Benefit
e) Constant Attendance Allowance
f) Disability Living Allowance
g) Pension Guarantee Credit
h) Income-related Employment and Support Allowance (ESA)
i) Income-based Jobseeker’s Allowance (JSA)
j) Income Support
k) Industrial Injuries Disablement Benefit
l) Personal Independence Payment
m) Severe Disablement Allowance
n) Tax Credits (Child Tax Credits and Working Tax Credits)
o) Universal Credit (UC)
p) War Pensions Mobility Supplement.
This information is based on what we expect to be the case from 1st April 2022. It is subject to change based on the BEIS update and we will keep you updated over the coming weeks.
If you have any questions, please don’t hesitate to contact us to discuss further. Your dedicated Business Development Manager is ready to help you with this transition and answer any questions.
Send us a message and we will get straight back to you.
