What is ECO And How Will it Benefit You?

In the battle to tackle carbon emissions, the European Union and its member states have committed to introducing legislation and measures. We already have the EPC (Energy Performance Certificate) and now we have ECO (Energy Company Obligation). Presently in its second phase, it aims to improve the cost and efficiency of heating the home while reducing costs and carbon emissions.

What is ECO?

A new scheme introduced by government to reduce carbon emissions and household energy costs. Rather than focusing on consumers of electricity and landlords, it is measures put in place for energy suppliers. Larger suppliers are put under an obligation to improve the energy performance (and bills of the households to whom they supply). Targets are based on the company’s market share of the energy supply industry.

You may not think that this affects you as a landlord, especially if your name is not on the bills, but you would be wrong. There are several ways in which you could benefit.

The Obligations of ECO

The following clauses may be relevant to you as a landlord.

CERO: The first obligation is “CERO” – Carbon Emissions Reduction Obligation. This means that the energy supplier is under obligation to promote primary measures for reducing bills and carbon emission. This would include regular information on what grants homeowners may apply for to improve insulation, and general tips for reducing bills.

CSCO: Suppliers are obliged to promote insulation to its customers, including connections to district heating amongst low-income occupiers or owners. Those in the “affordable warmth” group are the primary focus here, and especially those who live in rural areas and those of low income.

HHCRO: Home Heating Cost Reduction Obligation obliges suppliers to improve the ability of those on a low income to heat their homes. This also covers improvements in heating, so would oblige boiler replacement and improvements to the heating system.

We are presently in the second phase of ECO. This phase will run until March 2017.

ECO and Landlords

Under ECO, you may be eligible for a grant to replace your current boiler. There are certain criteria, and you should check your eligibility because much will depend on the incomes of your students (or their parents). Whether you have a gas, oil or LPG boiler, and it has not been replaced in a while, it is worth investigating.

Students do not automatically qualify under the “affordable warmth” but if yours come from a low income family and entitled to extra grants and bursaries, you should check with them. However, in some cases, you may need to contribute to the costs.

Why Go ECO?

Even if you are not eligible, it is worth making energy efficiency improvements to your property. With the high cost of living, students are savvy about potential energy bills and will seek the greenest homes they can find. Don’t be surprised if they ask to see your EPC.