UK Government Update: New Changes in Energy Efficiency Legislation

The UK government is making strides to enhance energy efficiency across British homes with a new amendment to the Energy Company Obligation (ECO) schemes. This change is set to impact the way energy suppliers approach home-heating cost reduction obligations, aiming to make homes warmer, more energy-efficient, and environmentally friendly.

What's Changing?

The legislation amends the 2022 and 2023 ECO Orders, crucial tools in the government's plan to reduce energy bills and carbon emissions. These orders target energy suppliers, imposing obligations to help households reduce heating costs. The updated rules extend to England, Wales, and Scotland, applying across Great Britain.

Key Objectives:

1. Broadened Support: The Great British Insulation Scheme (GBIS) aims to provide energy efficiency measures to a wider range of households, especially those struggling with high energy costs. This initiative aligns with efforts to alleviate fuel poverty and help meet national carbon reduction goals.

2. Enhanced Methodologies: Updates to the Standard Assessment Procedure (SAP) and the Reduced Data Standard Assessment Procedure (RdSAP) align with industry advancements, ensuring energy performance assessments reflect the latest standards.

3. Strategic Targets: By March 2026, obligated suppliers must achieve significant cost reductions. ECO4, a key component of the strategy, targets whole-house retrofits for low-income households, while GBIS focuses on rapid, cost-effective insulation measures.

Transition and Industry Impact:

• Updated Assessment Protocols: The transition to the new RdSAP10 methodology will occur over six months, allowing flexibility for energy suppliers while maintaining rigorous standards for energy assessments.

• Cost Implications: While the changes may alter suppliers' costs to meet obligations, the overall financial impacts are expected to be minimal.

Consultation and Feedback:

The Department for Energy Security and Net Zero conducted a thorough consultation, engaging with key stakeholders like energy suppliers and trade associations. The feedback has shaped a balanced approach, accommodating industry needs while pushing forward with environmental goals.

Looking Ahead:

The government will monitor progress through regular reports and engagement with stakeholders, ensuring that the new measures are effectively implemented. While no significant impact on small businesses or the public sector is anticipated, the changes represent a crucial step in the UK's journey towards a more sustainable and energy-efficient future.

For more detailed information, the full legislative documents and impact assessments are available on the UK legislation website. This proactive approach underscores the UK's commitment to tackling climate change and supporting households through energy efficiency improvements.