The Energy Company Obligation
The Energy Company Obligation (ECO) is part of a Government initiative to encourage householders to install energy efficiency improvements in their homes.
Making energy efficiency improvements to your home should reduce your energy bills. The Government introduced ECO which provides funding from the main energy suppliers to assist householders in installing energy improvements, such as efficient boilers and insulation.
Part of this scheme is specifically targeted at low income households to help them keep warm and save money on energy bills. Householders who think they may be eligible for help can contact the Energy Saving Advice Trust on 0300 123 1234 for advice or alternatively their own energy supplier.
For more information, the Department of Energy and Climate Change have issued a quick guide, which you can download here: Energy Company Obligation
Due to changes in Government policy in July 2015, Green Deal funding is no longer available. These changes do not affect existing Green Deal finance plans.
The Green Deal was a government-backed scheme to help householders make cost-effective energy saving improvements, including efficient heating and insulation. The finance repayments under Green Deal are repaid through the electricity bill. The repayments must meet the Golden Rule - this means that the householder should not have to pay back more than the savings made on the energy bill. However, this is not a guarantee as the actual level of savings will depend on how much energy is used to heat the property and the future cost of energy.
Green Deal finance plans will be repayable over a number of years. If the property is sold or re-let during the term of the plan, the finance plan stays with the electricity bill for the property. It is possible that a subsequent owner or tenant of the property will be required to make the repayments through the electricity bill.
For more information on Green Deal, see Useful links.