Introduction
The Company Energy Obligation is an energy efficiency programme designed by the United Kingdom Government to act as an energy subsidy. The programme is formulated to replace the two main existing obligations, the Community Energy Saving Programme and the Carbon Emissions Reduction Target. The two programmes, CESP and CERT were designed to meet their objectives by the end of year 2012. Therefore, the need for ECO was established to take over the obligation concerning the energy efficiency in United Kingdom.
Through the establishment of the identified three different targets, ECO is subjected to improve the efficiency of energy to the domestic households. The three different targets include carbon Emission Reduction Target, Carbon Saving Community Target and Home Heating Cost Reduction.
On the CERT, the government is centered hard to treat households and particularly the measures that are not supported by the Green Deal, those that do not meet the ‘golden rule’ requirements. The primary measures that the UK government is concentrating on in this target are the hard-to-treat cavity wall and solid wall insulation. District heating systems are also considered as a low level of insulation measures that are carried out in this target.
On the Carbon Saving Community Target is centered on the areas that inhibited by the low income earners. The government aims to provide insulation measures and links to district heating systems to the local households in the rural areas. The target aims to meet the objective of 15 percent Carbon Savings Community Obligation by improving the effective measures to the energy users in the rural areas. This target aims to save 20.9 million tonnes of Carbon Dioxide.
On the Carbon Saving Communities Obligation, the government is formulating the sufficient energy measures to the 15% of the vulnerable areas in the UK. These areas are inhibited by households who are low income earners. The government is aiming to invest £1.3 billion on sufficient energy among 230,000 low income households.
On the last target, Home Heating Cost Reduction Target, the government is aiming to save £ 4.2 billion on energy cost. The target requires the energy suppliers to develop measures that will enable the vulnerable and low income groups to afford the district heating systems in their houses. The energy users are therefore able to heat their houses through the provided heat qualifying measures. This means that via the ECO, the government will install new heating appliances, that are cost saving, or repair and replace the household heating appliances such as boilers.
Through the ECO, the energy users in the UK are able to benefit from the affordable warmth in their homes through the Affordable Warmth Obligation. This obligation aims to provide and improve the hot water and heating measures, micro-generation and glazing technologies and insulation that are only eligible to low income and vulnerable groups.
There are criteria that are used when a household is interested on applying the ECO measures. For a person to be eligible, he or she must meet the minimum requirements. The obligations are highly centered on the low income and vulnerable communities, thus these two groups are given the first priority. However, the eligibility of the interested energy user is determined by the Energy Saving Advice Service where one can call on 0300 123 1234 to confirm whether there are eligible for the applications. An interested household can also access the legislation.uk.org websites to fill the application forms.
References
Energy Company Obligation (ECO). Energy Saving Trust 2013. http://www.energysavingtrust.org.uk/Organisations/Local-delivery/Free-resources-for-local-authorities/Local-authority-funding-guide/Funds/Local-Authorities/Energy-Company-Obligation-ECO
Ofgem. "Community Energy Saving Programme (CESP)". Retrieved 26 July 2012.
