changes to the energy company obligation a supplier’s view nigel dewbery head of obligation...
TRANSCRIPT
Changes to the Energy Company ObligationA supplier’s view
Nigel Dewbery Head of Obligation DeliveryCAN Training Day 7th October 2014
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Contents
1) Timeline
2) HHCRO Positives and negative impacts
3) CSCO Positives and negative impacts
4) CSCO Rural Positives and negative impacts
5) CERO Positives and negative impacts
6) Green Deal changes & impacts
7) Summary
8) Contacts
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DECC Timetable
1) Autumn Statement Dec 2013 DONE
2) Public Consultation release Mid Feb 2014 DONE
3) Public Consultation closes Mid April 2014 DONE
4) Drafting of new SI April-June 2014 DONE
5) New SI before House B4 20th July 2014DONE
6) Legislation debate &outcome October 2014 In
Progress?
Some changes will be back dated to 1st April 2014, and the supply chain is actively working and delivering against the new proposals.
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Positives and Negatives -HHCRO
Positive Impacts
- Extension until March 2017
- Guidance on Customer Contribution
- Introduction of installation warranty with costs offset by target reduction
- Uplift for non gas area measures (although insufficient)
- Maintaining “Hard” 2015 target
Negative Impacts
- introduction of deflator, direct additional cost.
- Extension target worked on 2.25yr ECO1 period not 2.5yr
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Positives and Negatives –CSCO/CSCO Rural
Positive Impacts
- Extension until March 2017
- Increase of IMD areas to lowest 25%- Maintaining “Hard” 2015 targets
- New eligibility by postcode permitted for Rural
- Non mandating of Brokerage use
Negative Impacts
--Limitation on application of excess actions to CSCO Rural
- Extension target worked on 2.25yr ECO1 period not 2.5yr
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Positives and Negatives -CERO
Positive Impacts
- Extension until March 2017
- Introduction of CWI, LI and DH as primary measures
- Removal of HTT CWI definition which will remove administration
Negative Impacts
- Levelisation metrics not reflective of true market conditions
-Extension target worked on 2.25yr ECO1 period not 2.5yr
- Total reduction applied to phase 3 (last year) of ECO1.
- “Soft” 2015 target introduced
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Positives and Negatives –SWI Minima
Positive Impacts
- Calculated as a tCO2 target
Negative Impacts
- Use of average of 40tCO2 per property higher than actual average.
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Overall cost impacts to Suppliers
Overall savings were not as large as originally predicted
Area Change Spend
HHCRO Introduce Deflator
HHCRO Introduce Upside off gas
HHCRO Warranty costs
CSCO IMD areas
CSCOR Postcode areas
CSCOR Excess actions
CERO Target reduction
CERO Levelisation metrics
CERO Primary Measures
CERO Admin on HTT CWI
AllExtension based on 2.25 years
SWI Minima Based on "high" averageCERO (for small suppliers only? Phase 3 reduction
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What next?
Now looking for project partners particularly against
1) CSCO Rural
2) SWI Minima
3) District heating
For delivery by E.ON until 2016
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Green Deal Changes - Incentives
Range of offers being announced to drive GD take-up
1) £1000 for 2 measures
2) Up to £6000 for SWI
3) £100 refund on GDAR
4) £500 for homemovers
Cannot be used with ECO
Limit on “state aid spending” For EON, customers will beoffered the best deal (ECO or GD)
Challenge = complexity and confusion
ALL SPENT IN SIX W
EEKS!
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E.ON Green Deal Community Activity
E.ON active in Green Deal Communities Areas
Harringay
Peterborough
Worcester
Nuneaton
Still have capacity to undertake SWI delivery for GD Communities
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EOTR Vans - Communities & Green Deal focus
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E.ON – our intent and actions through the changes
We simply have had to reduce costs in line with the political intent.
1) Fully complete all obligations and sub-obligations on time (On Target)
2) Deliver at as low a cost as is practical in order to reduce pass-through to
E.ON supply customers
3) Renegotiated all existing contracts (incl. timeframe, volume and measure
type) to fit into new world.
4) Provide as much continuity and security to partners and installers as
possible
5) Secure longer-term, pan-community funding projects
6) Provide customers with best options for them (within compliance
constraints)
7) Working with proactive partners
Contact Us
HHCROTina Cowley Crispin Jones07891 291641 07794 [email protected] [email protected]
CERO/CSCOLisa Sims Jon Kirby07736 617946 07872 [email protected] [email protected]
Steve Lauri (workshop later) Phil Dawson (workshop later)07525 240968 07740 [email protected] [email protected]
Head of Obligation DeliveryNigel Dewbery07595 [email protected]
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