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Ofgem opens consultation on administration of Great British Insulation Scheme and ECO4 amendments

Ofgem opened a five-week consultation on 11 May 2023 on how it would administer the Great British Insulation Scheme and amendments to ECO4, closing on 16 June 2023.

A newspaper on a kitchen table beside a model of rules and regulation

Ofgem published a consultation on 11 May 2023 seeking stakeholder views on its proposed administration of the policies on the Great British Insulation Scheme and amendments to ECO4 regulations1. The Department for Energy Security and Net Zero had named Ofgem as the intended administrator of the Great British Insulation Scheme2.

The consultation ran for five weeks, from 11 May 2023 until 16 June 20232. Ofgem's decision page records that the consultation closed on 16 June 2023 and that it received 17 responses from a variety of stakeholders, including energy suppliers, installers and an independent organisation promoting energy efficiency1. The consultation page lists a closed date of 17 June 2023, a day later than the 16 June date given in the decision page and in the consultation's own stated closing date1.

The scheme had been consulted on previously by the Department for Energy Security and Net Zero under the name ECO+ in November 2022, and the policy proposals and response were published in March 20232. Ofgem set out what its response document would cover:

"In the response document, we summarise stakeholder views, present the points raised and respond to that feedback. We then outline the outcome of the consultation and, where relevant, how we have changed our approach."
Ofgem, Great British Insulation Scheme and ECO4 Amendment Administration Consultation Decision1

Ofgem published its decision on 22 August 2023, describing the document as its consultation response setting out its final position1. The main document is a PDF of 545.68KB1. The consultation document itself was a PDF of 459.86KB2. Responses to the consultation could be sent to gbisconsultation@ofgem.gov.uk, with Chandni Bhudia named as the respond contact2.

Why it matters for households

The Great British Insulation Scheme and ECO4 are the routes through which energy suppliers fund insulation and other efficiency measures in homes, so the rules Ofgem administers shape which households can be offered work and on what terms. The consultation covered both the new scheme and amendments to ECO4, the current Energy Company Obligation scheme, meaning the two sit alongside each other rather than one replacing the other outright. For a household, the practical effect of administration sits in eligibility, verification and how installers are held to the scheme rules, all of which determine whether a measure actually gets fitted. Ofgem's role as intended administrator is set out in its regulatory remit. The differences between the two schemes are set out in the comparison of the Great British Insulation Scheme and ECO4, and the scheme itself is covered in the guide to the Great British Insulation Scheme. Because insulation reduces the energy a home needs to stay warm, the administration of these schemes bears directly on insulation and energy independence.

What happens next

The consultation closed on 16 June 2023 and Ofgem published its decision on 22 August 20231. No further dated steps are given in the published material.

Sources2 cited
  1. Great British Insulation Scheme and ECO4 Amendment Administration Consultation Decision | Ofgem, ofgem.gov.uk
  2. Great British Insulation Scheme and ECO4 Amendment Administration Consultation | Ofgem, ofgem.gov.uk