The Electricity and Gas (Energy Company Obligation) (Amendment) Order 2017

Amendments to article 16 of the 2014 Order (achievement of home heating cost reduction obligation)

11.—(1) In article 16(1), for “31st March 2017” substitute “30th September 2018”.

(2) For articles 16(2) and (3) substitute—

“(2) Subject to paragraphs (6) to (7A), a supplier must—

(a) achieve its total home heating cost reduction obligation by promoting heating qualifying actions; and

(b) in meeting that obligation, promote heating qualifying actions—

(i) that are completed on or after 1st July 2016; and

(ii) that are not the replacement of a qualifying boiler fuelled by mains gas,

so that the supplier achieves at least its home heating minimum requirement.

(3) A heating qualifying action is the installation of a measure which—

(a) is installed at domestic premises;

(b) results in the reduction in the cost of heating those premises to 21 degrees Celsius in the main living areas and 18 degrees Celsius in all other areas;

(c) in the case of an installation completed on or before 31st March 2017, is installed at private domestic premises occupied by a member of the affordable warmth group;

(d) in the case of an installation completed on or after 1st April 2017—

(i) meets the condition in article 16A(2), (3), (4), (5) or (6); and

(ii) is installed at a pre-existing building or installed at premises which were first occupied as domestic premises before the installation was completed;

(e) is accompanied by any warranty required by paragraph (4) or (8); and

(f) is carried out in accordance with paragraph (5).”.

(3) For article 16(5) substitute—

“(5) A heating qualifying action must be carried out—

(a) on or after 1st April 2015;

(b) in accordance with the Publicly Available Specification, where the installation is referred to in the Publicly Available Specification;

(c) by a person of appropriate skill and experience, where the installation is completed on or before 31st March 2017 or is not referred to in the Publicly Available Specification; and

(d) by or under the responsibility of a certified installer, where the installation is completed on or after 1st April 2017 and referred to in the Publicly Available Specification.”.

(4) After article 16(7) insert—

“(7A) Where Z (as calculated in accordance with paragraph (7B)) is less than 100, no more than Z% of a supplier’s total home heating cost reduction obligation may be achieved by measures which are heating qualifying actions by virtue of meeting the condition in article 16A(3), (4) or (5).

(7B) For the purposes of paragraph (7A), “Z” is calculated as follows—

where—

• “A” is the home heating cost reduction obligation determined for the supplier under article 7(1) in respect of phase 3; and

• “B” is the greater of £1 or the supplier’s total home heating cost reduction obligation.”.

(5) In article 16(9) for “Schedule 4” substitute “Part 1 of Schedule 4”.