Eco delivery costs “in line” with Decc estimate

The cost of delivering the Energy Company Obligation (Eco) for the energy companies is in line with the Department of Energy and Climate Change’s (Decc) estimate, according to the latest government figures.

Statistics from Decc show that, using data from the total delivery costs of Eco until the end of August 2013, the scheme is predicted to cost a total of £1.336bn per year, adding an average of £50 to the average customer’s energy bill.

This compares to the cost estimate of £1.3 billion that Decc made in its central impact assessment before the scheme was launched at the start of the year.

Energy secretary Ed Davey, said: “These figures – supplied by the energy companies themselves – show that the costs are in line with previous schemes so there should be no need for any increase to consumer bills due to Eco.”

The Eco brokerage costs also suggest “a total cost of Eco compliance of around £1.35 billion per annum”, according to Decc.

The figures also show that the energy supplier with the lowest cost of delviering Eco is likely to spend £1.08 billion to deliver the scheme, whilst the poorest performing supplier will face costs of £1.89 billion.

Decc said that the difference “shows that some energy suppliers are discharging their obligation more cost effectively than others”.