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<p>A technical issue came to light over the summer around the application of “in-use factors” in ECO. In-use factors adjust the carbon scores for each energy efficiency measure to reflect its likely real-world, rather than theoretical, performance.</p><p>In modelling the expected outputs for ECO, and setting the proposed legal targets for the scheme, the inclusion of "in-use" factors was assumed. However, the secondary legislation giving effect to the Green Deal and ECO policies did not in every relevant instance incorporate the provisions necessary to ensure that in use factors are applied.</p><p>As this would have created uncertainty for parties such as those who are obligated under the scheme, DECC launched a short consultation on 30 August with a view to correcting this anomaly and providing the clarity that is needed. This consultation has now closed and DECC proposes to bring a revised Order back to the House at the earliest opportunity, with a view to its coming into force by 1 January 2013.</p><p>We do not expect this to make much, if any, practical difference to delivery on the ground. Households will continue to benefit from energy efficiency and heating measures delivered under existing schemes such as Warm Front and CERT and we intend to include a provision in the amended Order that will allow energy companies to carry forward ECO activity delivered from 1 October and score it against their ECO targets.</p> |