The National Insulation Association (NIA) said in its response to the consultation on the design of the Energy Company Obligation 2023 to 2026, known as ECO+, that a further rise to the energy price cap was expected in April 2023. The response was submitted to the consultation, which closed on 23 December 20231.
The NIA set out the case for early delivery of insulation measures ahead of the ECO+ Order coming into force. It said annual gas and electricity bills for a consumer with typical consumption had risen by 141% and 65% respectively since winter 2021/22, and that with the prospect of a further 20% rise to the energy price cap in April 2023, there was no reason to delay where measures were ready and legislation had been laid1.
"With the prospect of a further 20% rise to the energy price cap in April 2023, if measures are ready to be installed before the ECO+ Order coming into force, and the legislation has been laid, then there is no reason to delay."
The NIA said the scheme's target was to deliver insulation measures to 410,000 households through ECO+, to deliver energy efficiency measures to over 400,000 households and to upgrade over 160,000 to EPC Band C1. Its response set out positions on eligibility and delivery, including that up to 80% of the scheme's targets would be aimed at the general eligibility group, with a low-income group minimum requirement equivalent to 20% of each annual target1.
On eligibility, the NIA said general group support should be targeted at households in Council Tax bands A to D in England, A to E in Scotland and A to C in Wales with an EPC of D and below, and that all eligible low-income households living in EPC band D to G should be targeted through the low-income group1. It also said rural uplifts of 35% should apply in Scotland and Wales only, and that homes should only be eligible to receive ECO+ support once through the scheme1.
Separately, National Energy Action said on 1 July 2024 that the price cap would drop by 7% that summer, making the typical bill £1,568 a year, and that the cap was set to rise again in October2. Its figures showed 5.6 million UK households would be in fuel poverty from 1 July2. BOXT, in a guide updated in March 2026, said the price caps were due to rise again in April 2023 and estimated that by 2027 household bills could cost an average of £3,564 per year3.
Why it matters for households
The price cap sets the maximum a supplier can charge per unit of gas and electricity for a typical household, so a rise in April 2023 would have fed directly into what a home paid for the energy it used. The NIA's figures put the scale of the preceding increases at 141% for gas and 65% for electricity since winter 2021/221. Insulation lowers the energy demand of a property, which reduces the amount a household needs to buy in the first place, and so bears on a home's energy independence from volatile wholesale prices. The NIA said soaring energy prices meant many more consumers were struggling to pay their bills and at risk of falling into fuel poverty1.
What happens next
The consultation closed on 23 December 2023 and the NIA's response was submitted by that date1. The NIA said it supported mandatory annual targets for ECO+ and recommended that targets be reviewed on a regular basis1. It also supported allowing unlimited carry-over between annual targets for the first two years of the scheme1. The outcome of the consultation has not been reported in these sources.
Sources3 cited
- Energy Company Obligation - National Insulation Association, nia-uk.org
- 'Any drop in energy bills is welcome, but modest falls in summer look set to be wiped out by bigger rises in Autumn when people will need to put the heating back on.' - National Energy Action (NEA), nea.org.uk
- Bills of the future | BOXT, boxt.co.uk
