Statement on the 50% reduction in the Energy Company Obligations

Written by Andrew Warren on . Posted in Articles and Blog, Perspective

It is absolutely disgraceful that the big energy companies have orchestrated this unscrupulous campaign, that appears to be succeeding in blackmailing the UK government into cutting by half its established policy to require energy companies to help customers stop wasting money by wasting fuel.

There has been no increase whatsoever in the levels of social and energy saving obligations placed upon the Big Six this year. This concerted attack on the Energy Company Obligation is predominantly a distraction technique, designed to draw attention from the price gouging they are practising. The extent to which the Big Six currently overcharge customers is estimated by the founder of one of their smaller competitors, Ovo, at £3.7bn a year.

Home energy use has dropped by a quarter since 2005, largely owing to the installation of energy saving measures. This has cut the energy companies’ turnover badly. That is why they are trying to destroy the only nationwide energy saving programme. But because the costs per kilowatt hour have more than doubled over the same period, the proportion of household budgets spent with the Big Six energy companies has risen sharply.

It is completely perverse logic , to help cut fuel bills, to cut the one programme that helps householders cut fuel bills. There are already 7,000 fewer people employed today than in November 2012 in delivering energy efficiency in homes. The result of halving the ECO programme will be that at least 10,000, possibly 13,000, fewer people will be employed in our sector next year than anticipated. These are mostly not in household name companies, nor even in SMEs. Decimating the ECO hits hardest at precisely the kind of micro start-up businesses which the UK has been dependent upon to lead us out of recession.

Andrew Warren
Director
Association for the Conservation of Energy
Westgate House, 2a Prebend Street
London N1 8PT
Tel: +44 20 7359 8000
Fax: +44 20 7359 0863
Email: andrew@ukace.org
Web: www.ukace.org

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Comments (2)

  • David Lauder

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    Well said. I was also interested to hear what you said on the BBC TV news on 1st Dec about this. Commenting on a proposal that people would get a grant for energy efficiency measures when they move house, you said that such grants are already available without moving house if you use certain contractors. Can you please provide more details of how to find out about this?

    Reply

    • Pedro Guertler

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      Dear David,

      Thanks for your interest. The grant already available which Andrew referred to is the Green Deal cash-back scheme. More details are available here: https://gdcashback.decc.gov.uk/

      Reply

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