2 minute read
ECO 4: Where are we now?
By Simon Flint, Retrofit Support Team Leader
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Following a number of delays caused by uncertainty around legislation, political changes and clarification from OFGEM, we have finally seen an increase in ECO 4 submissions as industry starts to engage with the new processes and requirements of the scheme.
As you may already be aware, Elmhurst lobbied strongly for the inclusion of EPCs in the ECO 4 process but were ultimately not successful. It has now finally been confirmed that Energy Reports and the documents produced from them are to be used by Retrofit Coordinators as part of their submissions to TrustMark.
It has also been confirmed that these Energy Reports will be required at both the start and end of the ECO 4 process.
Although there are a number of differences between ECO 4 and its predecessor ECO 3, our concern is that the funding mechanism is still measure-led which means the supply chain are motivated to search for properties to meet their solution, and then engineer a Retrofit Plan to justify it. This needs a radical rethink as the start point needs to be a fully funded Retrofit Assessment and a Retrofit Plan, only then can the correct measures be determined.
The fact that one of the key differences from ECO 3 to 4 is the requirement to improve a property by two SAP bands to achieve the maximum funding means that we are already seeing evidence that the average number of measures per property is significantly higher. This in turn puts even more emphasis on a quality assessment and a Retrofit Coordinator who is looking at what is best for the property, not just what funding is available. As we go to print, a new consultation has been published by government following the announcement of another funding stream ECO +.
This will be worth £1 billion over the next three years. The scheme will mainly target Band D properties or lower and offer them a low cost insulation improvement measure. The aim is to improve 410,000 properties over the three year period but unlike ECO 4 it is suggested that this process will need EPCs.
Only after the consultation is closed and a final version is issued will we be able to confirm full details but anything that improves our housing stock and reduces fuel bills should be encouraged.
