Grants to Replace Faulty Electric Storage Heaters are Provided by the Government's ECO Scheme
What is the ECO Scheme?
The ECO Scheme was introduced by the Government in 2013 to help low income families reduce their heating bills and reduce carbon emissions from their homes
ECO Scheme FAQs
Why was the ECO Scheme introduced?
The Government has signed up to internationally agreed carbon emission reduction targets and the ECO Scheme can help to meet them.
The two main aims of the ECO Scheme are to:
- Help low income families to reduce their heating bills by replacing old inefficient heating systems with new energy efficient ones and to improve the insulation qualities of their homes. Both of these measures will help to reduce energy usage and therefore cut heating bills.
- Reduce carbon emissions from the UK housing stock by installing modern energy efficient heating systems which use less energy.
When will the ECO Scheme end?
The current version of the ECO Scheme (ECO2t) is due to end in September 2018 but it may be extended beyond then.
The ECO Scheme was introduced in January 2013 and has gone through several versions since then to focus more on the Government’s policies to help cut heating bills and reduce carbon emissions for low income households.
ECO2t is the transitional part of ECO 2 which started on 1st April 2017 and is due to last 18 months. During this transitional period a consultation will be held to determine whether the ECO Scheme is to be continued and if so, in what form. The current proposal is to rename it the Help to Heat Scheme and focus more on eradicating fuel poverty among low income households.
Where does the money come from to finance Storage Heater Grants?
ECO is short for Energy Company Obligation and all the major energy suppliers were ‘obligated’ by the Government to provide funding for Electric Storage Heater Grants and Boiler Grants.
Of course, the energy companies’ only source of income is their customers. To pay for electric storage heater grants a levy is placed on every household’s electricity bill. This is collected by the energy companies and paid into an ECO Fund. Money from this fund is paid to ECO Accredited Installers who have carried out work under the ECO Scheme.