Confirming the changes to Eco that were proposed at the end of last year, Decc stated that “Eco companies are likely now to be in a position to make greater savings than they originally has predicted”, whih was estiamted to be £30 to £35 per customer.
It added that it would expect companies to continue to pass through “no more than the cost of delivering Eco” and Decc invited the suppliers to set out publically how they would pass on the additional savings.
EDF Energy said it had already passed on the savings as a result of the changes to Eco by limiting its price increase in November 2013 to 3.9 per cent.
Decc also stated that legislating for “blending” between Eco and Green Deal finance “remains an option”.
This would force mean suppliers would have to offer more expensive energy efficiency measures, such as solid wall insulation, with a combination of funding via Eco and the Green Deal.
However, Decc is not looking to legislate for this at the moment because it claimed there is an “inherent incentive” for suppliers to blend with other sources of funding in order to keep their costs as low as possible.