Response to the DECC Consultation on The Future of ECO

Executive Summary

Key Concerns
Policy Context for ECO: Energy measures delivered in buildings need a step-change in the scale of political ambition for the role they can play. Our recent analysis of the cost-effectiveness of all energy measures concludes that demand-side energy measures are the more cost effective way of delivering energy policy objectives such as reducing carbon emissions or reducing fuel poverty. The attached infographic, which uses the Government’s own data, summarises this analysis. We believe there is an urgent economic case for prioritising a cost-effective mass retrofit of energy measures.

Rushed reform and its market impacts: We have fundamental concerns over the process undertaken to deliver the proposed changes, rather than the changes themselves (although our members have strong views on the Government proposals too). It is clear that these proposed changes to ECO were driven by a political agenda, where energy bills have become a key election issue for May 2015, rather than by one which is focussed on delivering sustainable low-carbon or social policy as cost-effectively as possible. This has destabilised the marketplace, particularly the energy efficiency supply chain. Industry and investor confidence in the Government’s commitment to a policy framework for energy efficiency is low; it is essential that the next Parliament develops a long-term strategy for energy policy in building which seeks to address this.

To see our response to DECC’s key questions, please click the following link; ECO Consultation: SEA response