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Energy Company Obligation

Energy and Climate Change written question – answered on 3rd September 2012.

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Photo of Graeme Morrice Graeme Morrice Labour, Livingston

To ask the Secretary of State for Energy and Climate Change if he will ensure that energy suppliers recover energy company obligation costs to the benefit of low consumption consumers; and what assessment he has made of the requirement for a further mechanism to ensure this.

Photo of Gregory Barker Gregory Barker The Minister of State, Department of Energy and Climate Change

We have not specified whether and how the costs of delivering the energy company obligation (ECO) are recovered from consumers, it is an issue for energy suppliers to consider.

However, unlike previous schemes, obligations under the ECO will be set on the basis of a company's sales volumes (rather than its customer numbers). This reflects the view of many parties in consultation that such an approach is likely to lead to costs being passed on to consumers in a more equitable way, with low consumption consumers paying less.

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