Ofgem has finally released its outcome for Part 1 and 2 of its ECO4 administration consultation. For a scheme that was launched six months ago, only now can we see Ofgem’s response to the consultation, which outlines how ECO4 will operate.

As many of you will know the previous Energy Company Obligation (ECO) scheme, ECO3, ended on 30 March 2022. The Department for Business, Energy and Industrial Strategy (BEIS) consulted on the next phase of ECO (ECO4) in July last year, with a view that ECO4 would run from 1st April 2022 until 31st March 2026.

To coincide with this, Ofgem published a two part consultation seeking stakeholder views on their proposed administration, with part 1 being released in November 2021, and part 2, bizarrely, being released in June 2022- two months after the proposed commencement of ECO4.

The industry has been left in limbo with many installers, and retrofit professionals, left waiting for confirmation of how Ofgem will administer ECO4 before commencing any work.

The document issued on Monday details Ofgem’s final administrative position and is our best indication of how ECO4 will operate. This is a key document for anyone involved in the sector.

Elmhurst is currently reviewing the detail within this 132 page response, and will provide a summary very soon, but our initial feelings is why this is taking taken so long. Elmhurst’s Group Managing Director, Martyn Reed, has been critical of the delay to ECO4;

“The retrofit sector is nowhere near as large as it needs to be, in order to fulfil the government’s net zero obligations, and most blame the stop/start nature of the government policy as the primary cause. No business, however large or small, can be expected to invest in recruitment and training when the future looks so uncertain. Delays of this type are incredibly damaging to  companies and employees, and ultimately, will inhibit efficiency and effectiveness in the sector”

We will be publishing a summary next week. Click below to see Ofgem’s response in full.