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Energy Company Obligation and Warm Home Discount Scheme

Department for Business, Energy and Industrial Strategy written question – answered on 24th March 2020.

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Photo of Alex Cunningham Alex Cunningham Labour, Stockton North

To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate he has made of the number of energy customers that do not contribute to the (a) Energy Company Obligation and (b) Warm Homes Discount as a result of being with a smaller supplier.

Photo of Kwasi Kwarteng Kwasi Kwarteng The Minister of State, Department for Business, Energy and Industrial Strategy

The current threshold for participation in the Energy Company Obligation and Warm Home Discount is 200,000 domestic customer accounts and this is changing to 150,000 customer accounts from 1 April this year.

In the final stage impact assessment for ECO3, published in October 2018, we estimated that suppliers over the 200,000 threshold covered 96% of the market and those over 150,000 covered 99%. While the number of energy suppliers in the market and their customer numbers fluctuate, we expect the current market coverage to be similar now.

How energy suppliers pass on their costs depends on their individual pricing decisions.

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