Energy Company Obligation

Department for Business, Energy and Industrial Strategy written question – answered on 17th June 2022.

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Photo of Philip Dunne Philip Dunne Chair, Environmental Audit Committee, Chair, Environmental Audit Committee

To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 1 June 2022 to Question 7959 on Energy Company Obligation, what assessment he has made of the levels of compliance of licensed (a) gas and (b) electricity suppliers with the Energy Company Obligation scheme since 1 April 2022; and if he will make a statement.

Photo of Greg Hands Greg Hands The Minister of State, Department for Business, Energy and Industrial Strategy

Compliance for obligated energy suppliers is monitored by the scheme administrator, Ofgem. Ofgem works with suppliers to communicate rules for installing energy efficiency measures.

Ofgem run monthly compliance checks to ensure that what has been delivered to date is eligible and compliant under the scheme. They will make a final decision on all installations at final determination of the ECO3 scheme – the most recent iteration of the scheme – later this year and make a final decision on each supplier’s compliance with their obligation. Those found non-compliant may face Enforcement Action.

A written Ministerial statement will be issued once the draft Statutory Instrument for ECO4 is laid.

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