The Electricity and Gas (Energy Company Obligation) Order 2014

In this Order—

• “2012 Order” means the Electricity and Gas (Energy Companies Obligation) Order 2012 M7;

• “2014 low income and rural document” means the document entitled “The Future of the Energy Company Obligation: Small Area Geographies Eligible for ECO CSCO Support”, published by the Department of Energy and Climate Change on 18th July 2014 M8;

• “Administrator” means the Gas and Electricity Markets Authority established by section 1 of the Utilities Act 2000;

• “affordable warmth group” means a group of persons where each person in the group is in receipt of at least one of the benefits in Schedule 1 and meets the conditions in relation to that benefit which are specified in that Schedule;

• “area of low income” (except in relation to article 27) means an area in Great Britain which is described as an area of low income in the 2014 low income and rural document;

• “carbon qualifying action” (except in relation to the terms defined in paragraph (2)) has the meaning given in article 12(3);

• “carbon saving” means the lifetime tonnes of carbon dioxide that a qualifying action or surplus action will save;

• “carbon saving community obligation” means the obligation for the promotion of carbon saving community qualifying actions which is imposed on a supplier in respect of a phase;

• “carbon saving community qualifying action” (except in relation to the terms defined in paragraph (2)) has the meaning given in article 14(4);

• F35“certified installer”, in relation to the installation of a measure, means a person who is certified as compliant with those parts of PAS 2014 or PAS 2017 that apply to the measure by a certification body or organisation accredited to EN 45011 or EN ISO/IEC 17065:2012;

• “commencement date” means the date on which the Electricity and Gas (Energy Company Obligation) (Amendment) Order 2017 comes into force;

• “cost saving” means, in relation to a heating qualifying action or a surplus action—

  1. a

     the money that would be saved by that action over its expected lifetime in heating a home to 21 degrees Celsius in the main living areas and 18 degrees Celsius in all other areas; and

  2. b

     where the action also results in savings in the cost of heating water, the money that would be saved by the action over its expected lifetime in heating water in that home;

• “cost score” means the contribution that a heating qualifying action or surplus action makes towards a supplier's total home heating cost reduction obligation;

• F36“deemed score qualifying action” means a qualifying action which is not a SAP scored qualifying action;

• “deprived rural area” means an area in Great Britain which is described as a deprived rural area in the 2014 low income and rural document;

• “district heating system” means a system that delivers heat through pipes or conduits to two or more domestic premises;

• “domestic customer” means a person living in domestic premises in Great Britain who is supplied with electricity or gas at those premises wholly or mainly for domestic purposes;

• “domestic premises” includes a mobile home;

• “dual licence-holder” means a person holding a licence under section 6(1)(d) of the Electricity Act 1989 M9 and a licence under section 7A of the Gas Act 1986 M10;

• “electricity licence-holder” means a person holding a licence under section 6(1)(d) of the Electricity Act 1989 who does not also hold a licence under section 7A of the Gas Act 1986;

• “gas licence-holder” means a person holding a licence under section 7A of the Gas Act 1986 who does not also hold a licence under section 6(1)(d) of the Electricity Act 1989;

• “Green Deal report” means a report produced by a green deal assessor pursuant to a qualifying assessment in accordance with regulation 7 of the Green Deal Framework (Disclosure, Acknowledgment, Redress etc.) Regulations 2012 M11;

• “group company” means a licence-holder which is a member of a group of companies that includes at least one other licence-holder; and “group” refers to the group of companies of which the licence-holder is a member;

• “group of companies” means a holding company and the wholly-owned subsidiaries of that holding company where “holding company” and “wholly-owned subsidiary” have the same meaning as in section 1159 of the Companies Act 2006 M12;

• “heating qualifying action” (except in relation to the terms defined in paragraph (2)) has the meaning given in article 16(3);

• F37“home heating minimum requirement” means, subject to article 30A, the amount determined for a supplier under article 7 as the minimum amount of a supplier’s total home heating cost reduction obligation which is to be achieved by promoting heating qualifying actions that—

  1. a

     are completed on or after 1st July 2016; and

  2. b

     are not the replacement of a qualifying boiler fuelled by mains gas;

• “licence-holder” means an electricity licence-holder, a gas licence-holder or a dual licence-holder;

• “lifetime tonnes of carbon dioxide” means the amount in tonnes of carbon dioxide that is expected to be saved over the lifetime of a measure installed under this Order;

• “mobile home” means a home which is—

  1. a

     a caravan within the meaning of Part I of the Caravan Sites and Control of Development Act 1960 M13 (disregarding the amendment made by section 13(2) of the Caravan Sites Act 1968 M14); and

  2. b

     used as a dwelling for the purposes of—

     1. i

        Part I of the Local Government Finance Act 1992 M15 if it is situated in England or Wales;

     2. ii

        Part II of the Local Government Finance Act 1992 if it is situated in Scotland;

• “MtCO₂” means million lifetime tonnes of carbon dioxide;

• F38“new 2015 supplier” and “new 2016 supplier” have the meanings given in article 4(3) and (3A);

• “notification period” means—

  1. a

     1st January 2014 to 31st December 2014 for phase 1; F39...

  2. b

     1st January 2015 to 31st December 2015 for phase 2, F40and

  3. c

     1st January 2016 to 31st December 2016 for phase 3,

  and a reference in this Order, in relation to a phase, to the relevant notification period is to the notification period for that phase;

• F41“PAS 2014” means the Publicly Available Specification 2030:2014;

• “PAS 2017” means the Publicly Available Specification 2030:2017;

• “phase” means one of the F42three phases as follows—

  1. a

     the twelve months ending with 31st March 2016 (“phase 1”); F43...

  2. b

     the twelve months ending with 31st March 2017 (“phase 2”);

  3. c

     F44the 18 months ending with 30th September 2018 (“phase 3”);

• F45“phase 3 party cavity wall insulation” means the insulation of a cavity wall, where—

  1. a

     the installation of the insulation is completed on or after 1st April 2017; and

  2. b

     the wall divides premises from other premises under different occupation;

• “pre-existing building” means a building erected before 1st April 2017;

• F46“provisional solid wall minimum requirement” means the amount determined for a supplier in respect of phase 1, 2 or 3 under article 7(2);

• F47“Publicly Available Specification” (except in the definitions of “PAS 2014” and “PAS 2017”) means—

  1. a

     in relation to an installation completed on or before 31st March 2017, PAS 2014;

  2. b

     in relation to an installation completed between 1st April 2017 and 31st May 2017, PAS 2014 or PAS 2017;

  3. c

     in relation to an installation completed on or after 1st June 2017, PAS 2017;

• “qualifying action” means (except in relation to the terms defined in paragraph (2)), as appropriate, a carbon qualifying action, a carbon saving community qualifying action or a heating qualifying action;

• “qualifying boiler” means—

  1. a

     in the case of a boiler to be repaired, a boiler which the Administrator is satisfied—

     1. i

        is not functioning efficiently or has broken down; and

     2. ii

        has a seasonal energy efficiency value of not less than 86% when assessed against the Standard Assessment Procedure;

  2. b

     in the case of a boiler to be replaced, a boiler which the Administrator is satisfied—

     1. i

        is not functioning efficiently or has broken down; and

     2. ii

        cannot be economically repaired;

• “qualifying electric storage heater” means—

  1. a

     in the case of an electric storage heater to be repaired, an electric storage heater which the Administrator is satisfied has broken down and has a responsiveness rating when assessed against the Standard Assessment Procedure of more than 0.2; and

  2. b

     in the case of an electric storage heater to be replaced, an electric storage heater (“H”) which—

     1. i

        the Administrator is satisfied has broken down and cannot be economically repaired; or

     2. ii

        is located at the same premises as an electric storage heater which falls within paragraph (a) or sub-paragraph (i) and H has a responsiveness rating when assessed against the Standard Assessment Procedure equal to or less than 0.2;

• “qualifying supply” means the supply to domestic customers of 400 gigawatt hours of electricity or 2000 gigawatt hours of gas;

• “qualifying warranty” means a warranty which meets the requirements set out in Schedule 3;

• “recommended measure” means a measure recommended in—

  1. a

     a Green Deal report which has been produced in respect of the domestic premises at which the measure is to be installed; or

  2. b

     recommended in a report, other than a Green Deal report, by a chartered surveyor pursuant to an assessment of those domestic premises performed for the purpose of identifying measures for improving the energy efficiency of the premises;

• “Reduced Data Standard Assessment Procedure” means the Government's Reduced Data Standard Assessment Procedure for energy ratings of dwellings (2012 Edition, version 9.92) M16;

• “relevant district heating connection” means a connection of premises to a district heating system where the premises—

  1. a

     have flat roof, loft, rafter, room-in-roof or wall insulation; or

  2. b

     do not include the top floor of the building in which they are located and all of the external walls of the building are insulated, except for a wall which has—

     1. i

        one or more parts which are of solid wall construction; or

     2. ii

        a cavity which cannot be insulated;

• “relevant in-use factor” means—

  1. a

     where a measure is specified in the first column of the table in Schedule 2, the percentage specified for that measure in the second column of that table; or

  2. b

     where a measure is not so specified, 15%;

• F48“relevant year” means 2014, 2015 or 2016;

• “rural area” means an area in Great Britain which is described as a rural area in the 2014 low income and rural document;

• F49“rural minimum requirement” means, subject to article 30A, the amount determined for a supplier under article 7 as the minimum amount of a supplier’s total carbon emissions reduction obligation which is to be achieved by promoting carbon qualifying actions that are—

  1. a

     installed in premises situated in a rural area; and

  2. b

     completed on or after 1st April 2017;

• “SAP 2009” means the Government's Standard Assessment Procedure for energy rating of dwellings (2009 Edition, as amended in October 2010) M17;

• F50“SAP scored qualifying action” means a qualifying action which is—

  1. a

     completed on or before 31st March 2017; or

  2. b

     a connection of premises to a district heating system;

• “solid wall” includes a metal or timber frame wall or a wall of pre-fabricated concrete construction;

• “solid wall insulation” means internal or external insulation of a solid wall, but does not include insulation of a mobile home;

• “solid wall minimum requirement” means the amount of a supplier's total carbon emissions reduction obligation which is to be achieved by promoting the installation of solid wall insulation;

• “a specified adjoining area” means, where an area of low income (“area A”) is—

  1. a

     in England or Wales, an area (if any) adjoining area A which is listed as a “Lower Layer Super Output Area” by the Office of National Statistics for England and Wales, in a document entitled “Mid-2010 Population Estimates for Lower Layer Super Output Areas in England and Wales by Broad Age and Sex” (release date 28th September 2011) M18; or

  2. b

     in Scotland, an area (if any) adjoining area A which is specified by the Scottish Executive as a “Datazone” in a document entitled “SIMD Datazone Lookup” (version 3 published on 6th March 2012) M19;

• “Standard Assessment Procedure” means the Government's Standard Assessment Procedure for energy rating of dwellings (2012 Edition, version 9.92) M20;

• “supplier” has the meaning given in article 4;

• “surplus action” has the meaning given in article 27(3);

• “total carbon emissions reduction obligation” means, in respect of a supplier, F51and subject to article 30A, the sum of the supplier's carbon emissions reduction obligation—

  1. a

     for phase 1 which has been determined for the supplier under—

     1. i

        article 7, where article 11 does not apply;

     2. ii

        article 11, where that article applies; and

  2. b

     F52for phase 2 and for phase 3, which have been determined for the supplier under article 7;

• “total carbon saving community obligation” means, in respect of a supplier, the sum of carbon savings community obligations which have been determined for the supplier in respect of phases 1 and 2;

• “total home heating cost reduction obligation” means, in respect of a supplier, F53and subject to article 30A, the sum of home heating cost reduction obligations which have been determined for the supplier in respect of F54phases 1, 2 and 3 ;

• F55“total provisional solid wall minimum requirement” means, in respect of a supplier and subject to article 30A, the sum of the provisional solid wall minimum requirements which have been determined for the supplier in respect of phases 1, 2 and 3;

• “wall insulation” means—

  1. a

     insulation of a cavity wall;

  2. b

     solid wall insulation.

In this Order—

• “ECO1 carbon qualifying action” means a carbon qualifying action within the meaning of article 12 of the 2012 Order M21;

• “ECO1 carbon saving” means, in relation to an—

  1. a

     ECO1 qualifying action, the carbon saving attributed to that action under article 19 of the 2012 Order;

  2. b

     ECO1 excess action, the carbon saving attributed to that action under article 21 or article 21ZA of the 2012 Order M22;

• “ECO1 carbon saving community qualifying action” means a carbon saving community qualifying action within the meaning of article 13(5) of the 2012 Order M23;

• “ECO1 CERO target” means a licence-holder's total carbon emissions reduction obligation for the period ending with 31st March 2015, determined under the 2012 Order;

• “ECO1 excess action” means an action approved by the Administrator as an excess action or a group excess action under article 21 or article 21ZA of the 2012 Order;

• “ECO1 heating qualifying action” means a heating qualifying action within the meaning of article 15(3) of the 2012 Order;

• “ECO1 qualifying action” means an action which—

  1. a

     is—

     1. i

        an ECO1 carbon qualifying action;

     2. ii

        an ECO1 carbon saving community qualifying action; or

     3. iii

        an ECO1 heating qualifying action; and

  2. b

     was notified to the Administrator under article 16 of the 2012 Order M24.

For the purposes of paragraph (1)(a), where a licence-holder (“L”) is a member of a group (“G”), the supplies made by G are to be determined by reference to the type of supply in respect of which L is a licence-holder.

A F73new 2015 supplier is a supplier to whom paragraph (1) applies for the first time on 31st December 2015.

A new 2016 supplier is a supplier to whom the circumstances described in paragraph (1) apply for the first time on 31st December 2016.

For the purposes of determining the number of domestic customers of a licence-holder under this Order, a domestic customer who receives electricity and gas from a dual licence-holder is a separate domestic customer under each licence.

Where a dual licence-holder satisfies paragraph (1) in respect of electricity or gas that licence-holder is a separate supplier in respect of each supply.

This article applies for the purposes of article 4(1)(a).

Whether or not a licence-holder is a group company is to be determined F74according to whether the licence-holder was a group company on the date referred to in article 4(1)(a).

Where under paragraph (2) a licence-holder is a group company, the amount of electricity or, as applicable, gas supplied by the group in the year ending on the date referred to in article 4(1)(a), is the amount supplied by all licence-holders in the group during that year, whether or not they were members of the group throughout that year.

Where a supplier fails to do so or where the Administrator considers that a notification is inaccurate, the Administrator may determine for the purposes of paragraph (1) the number of domestic customers of a supplier or the amount of electricity or gas supplied.

Where a supplier (“S”) is a group company at the end of a notification period, S must also notify the Administrator by the notification date for that period of the name of each other supplier in the group, its company registration number and the amount of electricity or gas supplied by the group in that period.

In paragraph (3), “each other supplier in the group” means each supplier which makes the type of supply in respect of which S is a supplier.

Where under paragraph (3) a supplier is a member of a group with another supplier, the amount of electricity or, as applicable, gas supplied by the group in the relevant notification period is the amount supplied by those suppliers whether or not a supplier was a member of the group throughout that notification period.

Where a supplier fails to provide the information in paragraph (3), or the Administrator considers any of the information notified by the supplier under that paragraph is inaccurate, the Administrator may for the purposes of that paragraph determine the matters to which that information relates.

Anything determined by the Administrator under paragraph (2) or (6) is to be treated as if it were notified by the supplier.

Except where paragraph (6) or (7) applies, the Administrator must also determine for each phase a supplier's provisional solid wall minimum requirement.

A supplier is a group company during a phase where it is a member of a group with another supplier at the end of 31st December immediately before the commencement of that phase.

The formula referred to in paragraph (1)(a) is—

( A − B ) × 2

This article applies where a supplier does not achieve its ECO1 CERO target by the end of March 2015.

Where this article applies, the supplier's carbon emissions reduction obligation for phase 1, determined under article 7, is to be increased by—

( A − B) × 1 .1

The Administrator must notify the supplier by no later than 30th September 2015 of its revised phase 1 carbon emissions reduction obligation resulting from the calculation in paragraph (2).

A supplier must achieve its total carbon emissions reduction obligation by no later than F830th September 2018 .

Where a secondary measure is installed before a related primary measure, the secondary measure is not completed for the purposes of article 17 until the installation of the related primary measure is complete.

In this article—

• “installation condition” means that the secondary measure is installed on the same date as, or no more than six months before, or no more than six months after, the date on which the related primary measure is installed;

• “primary measure” means—

  1. a

     flat roof insulation;

  2. b

     loft insulation;

  3. c

     rafter insulation;

  4. d

     room-in-roof insulation;

  5. e

     wall insulation;

  6. f

     insulation applied to the ceiling, floor and walls of a mobile home; or

  7. g

     a relevant district heating connection;

• “secondary measure” means a measure, other than a primary measure, which is installed to improve the insulating properties of domestic premises;

• “supplier condition” means that the secondary measure is installed by the same supplier who installs the related primary measure.

A supplier's solid wall minimum requirement is, in MtCO₂,—

A − B

A supplier must achieve its total carbon saving community obligation by the end of March 2017.

Subject to paragraph (3) and article 15, a supplier must achieve its total carbon saving community obligation by promoting carbon saving community qualifying actions in an area of low income.

A carbon saving community qualifying action is the installation, at domestic premises, of a measure in paragraph (5) where the conditions in paragraph (6) are satisfied.

Subject to the limit in paragraph (3), where a supplier promotes carbon saving community qualifying actions in area A, the supplier may promote carbon saving community qualifying actions in area B (“adjoining installations”).

A supplier must identify, when notifying an adjoining installation under article 17, the areas A and B to which the installation relates.

Only one area A may be notified under paragraph (4) in relation to an adjoining installation.

A supplier must achieve its total home heating cost reduction obligation by the end of F1530th September 2018” .

A heating qualifying action which is the repair of a qualifying boiler or a qualifying electric storage heater must be accompanied by a warranty for at least one year.

No more than 5% of a supplier's total home heating cost reduction obligation may be achieved by the repair of a qualifying boiler.

No more than 5% of a supplier's total home heating cost reduction obligation may be achieved by the repair of a qualifying electric storage heater.

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).

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

In this article “private domestic premises” means domestic premises other than premises described in F18Part 1 of Schedule 4 .

This article applies for the purpose of the definition of “heating qualifying action” in article 16(3).

A measure meets the condition in this paragraph if the measure is installed at private domestic premises which are occupied by a member of the help to heat group.

In this article—

• “central heating system” means a system which provides heat for the purpose of space heating through a boiler or other heat source connected to one or more separate heat emitters;

• “E, F or G social housing” means domestic premises described in Schedule 4A;

• “help to heat group” means a group of persons where each person in the group is awarded at least one of the benefits set out in paragraph 1 of Schedule 4B and meets any condition in relation to that benefit which is specified in that Schedule;

• “local authority” means—

  1. a

     a county council;

  2. b

     a combined authority established under section 103 of the Local Democracy, Economic Development and Construction Act 2009;

  3. c

     a district council;

  4. d

     a London Borough Council;

  5. e

     the Common Council of the City of London;

  6. f

     the Council of the Isles of Scilly;

  7. g

     a county borough council;

  8. h

     a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994;

• “private domestic premises” means domestic premises other than premises described in Part 2 of Schedule 4;

• “renewable heating measure” means a measure for the generation of heat by means of a source of energy or technology mentioned in section 100(4) of the Energy Act 2008; and

• “statement of intent” means a description of how the local authority intends to identify households that may benefit from the installation of a heating qualifying action and are living—

  1. a

     in fuel poverty; or

  2. b

     on a low income and are vulnerable to the effects of living in a cold home.

F20Subject to paragraph (3A), A supplier must by the end of each relevant calendar month notify the Administrator in writing of each qualifying action completed in the calendar month immediately prior to the calendar month in which the notification is required to be made in accordance with this paragraph.

Except where article 12(5) applies, a qualifying action is completed when its installation is complete.

For the purposes of paragraph (3A)(b)(i), a late action falls within the 5% notification threshold for the notifying supplier if, at the time the late action is notified to the Administrator, the result of the following formula is less than or equal to 0.05—

A supplier may apply to the Administrator for a completed qualifying action to be notified after the date required by paragraph (1).

A notification under this article must include such information relating to a qualifying action as the Administrator may from time to time require.

In this article—

• F21“new supplier” means a new 2015 supplier or a new 2016 supplier;

• “overall obligation period” means—

  1. a

     for a supplier other than a new supplier, the period beginning with 1st April 2015 and ending with F2230th September 2018 ;

  2. b

     F23for a new 2015 supplier, the period beginning with 1st April 2016 and ending with 30th September 2018;

  3. c

     for a new 2016 supplier, the period beginning with 1st April 2017 and ending with 30th September 2018;

• “relevant calendar month” means—

  1. a

     a calendar month in the overall obligation period for the supplier (but excluding April 2015 if that month would otherwise form part of that period); and

  2. b

     F24October 2018 .

Where the qualifying action is a measure installed in Scotland F27on or before 31st March 2017 , the carbon saving for that action may also be calculated by determining the saving in accordance with SAP 2009 and reducing that saving by the relevant in-use factor.

The carbon saving for a deemed score qualifying action notified under article 17 is calculated in accordance with the following formula—

Where a qualifying action is the installation of solid wall insulation which is accompanied by an appropriate warranty, the expected lifetime of the solid wall insulation, for the purpose of calculating its carbon saving, is 36 years.

In this article—

• “appropriate warranty” means a warranty which the Administrator is satisfied—

  1. a

     is supported by a mechanism that gives assurance that—

     1. i

        funds will be available to honour the warranty; and

     2. ii

        the installation of the solid wall insulation and products used in the solid wall insulation comply with a quality assurance framework;

  2. b

     is for 25 years or more; and

  3. c

     provides for repair, or replacement where appropriate, of the solid wall insulation, covering the cost of remedial and replacement works and materials;

• “carbon dioxide equivalent saving” means, in respect of a measure, the amount in tonnes of carbon dioxide equivalent that is expected to be saved over the lifetime of the measure;

• “international carbon reporting practice” has the meaning given by section 94(1) of the Climate Change Act 2008 M26;

• “tonne of carbon dioxide equivalent” means—

  1. a

     a tonne of carbon dioxide; or

  2. b

     an amount of—

     1. i

        methane;

     2. ii

        nitrous oxide;

     3. iii

        methane and nitrous oxide combined; or

     4. iv

        carbon dioxide mixed with one or both of the gases listed in sub-paragraphs (i) and (ii),

     with an equivalent global warming potential to one tonne of carbon dioxide (calculated consistently with international carbon reporting practice).

Where paragraph (1)(a) applies in respect of a qualifying action installed in Scotland F34on or before 31st March 2017 , the cost score for that action may also be calculated by determining the cost saving in accordance with SAP 2009.

In paragraph (2A)—

• “A” is the cost saving for the qualifying action calculated in accordance with a methodology published by the Administrator under article 24A(2)(a); and

• “B” is the cost saving for the qualifying action calculated in accordance with a methodology published by the Administrator under article 24A(2)(b).

Where a qualifying action is the installation of solid wall insulation which is accompanied by an appropriate warranty, the expected lifetime of the solid wall insulation, for the purpose of calculating its cost score, is 36 years.

In paragraph (3), “appropriate warranty” has the meaning given in article 18.

Subject to articles 21 and 23, the cost score for the repair or replacement of a qualifying boiler F56completed on or before 31st March 2017 must be determined in accordance with the following formula—

( A − B ) × N

In paragraph (1)—

• “A” is the cost of heating the premises (“P”) where the repaired or replaced boiler is situated and, where applicable, the cost of heating water at P as determined in accordance with—

  1. a

     the Standard Assessment Procedure or (but only if the repair or replacement was carried out in Scotland) SAP 2009;

  2. b

     the Reduced Data Standard Assessment Procedure; or

  3. c

     an appropriate methodology for calculating the cost savings approved by the Administrator under article 24,

  where the calculation is based on the absence of a working heating system in P;

• “B” is the cost of heating P and, where applicable, heating water at P using, as applicable, the boiler that was repaired or the replacement for the boiler;

• “N” is—

  1. a

     in the case of a repair of a qualifying boiler which is accompanied with—

     1. i

        a warranty for at least one year, but less than two years, 1;

     2. ii

        a warranty for two years or more, 2;

  2. b

     in the case of a replacement of a qualifying boiler, 12.

In paragraph (1)—

• “A” is the cost of heating the part of the premises (“PP”) which is heated by the repaired or replaced electric storage heater as determined in accordance with—

  1. a

     the Standard Assessment Procedure or (but only if the repair or replacement was carried out in Scotland) SAP 2009;

  2. b

     the Reduced Data Standard Assessment Procedure; or

  3. c

     an appropriate methodology for calculating the savings approved by the Administrator under article 24,

  where the calculation is based on the absence of a working heating system for PP;

• “B” is the cost of heating PP using, as applicable, the electric storage heater that was repaired or the replacement electric storage heater;

• “N” is—

  1. a

     in the case of a repair of a qualifying electric storage heater which is accompanied with—

     1. i

        a warranty for at least one year, but less than two years, 1;

     2. ii

        a warranty for two years or more, 2;

  2. b

     in the case of a replacement of a qualifying electric storage heater, 20.

For the purposes of determining the carbon saving or the cost score to be attributed to a F61SAP scored qualifying action, a supplier may apply to the Administrator to approve a methodology other than the Standard Assessment Procedure or the Reduced Data Standard Assessment Procedure (“an appropriate methodology”).

An application under paragraph (1) must be made prior to the carrying out of the action.

The Administrator may also approve an appropriate methodology if the methodology is published by, or on behalf of, the Department for Business, Energy and Industrial Strategy as a replacement for the Reduced Data Standard Assessment Procedure or the Standard Assessment Procedure.

The Administrator must notify a supplier of its decision under this article.

The Administrator must publish a methodology for the purposes of determining the carbon saving to be attributed to a deemed score qualifying action.

The Administrator must notify a supplier of the carbon saving or cost score it has attributed to a qualifying action notified by a supplier.

A qualifying action achieved by a supplier (“A”) may be regarded as achieved by another supplier (“B”) (“a transfer”) if that transfer is approved by the Administrator.

For the purposes of paragraph (3)(b), an excess CSCO action is a qualifying action which is not required by A to meet its total carbon saving community obligation.

If the Administrator decides not to approve a transfer under paragraph (3) it must notify A and B of the reasons for that decision.

If a transfer is approved, the qualifying action is treated as achieved by B and not A.

The Administrator must approve the application if satisfied that the measure to which the application relates is a surplus action.

In this article, “ECO1 area of low income” means an area of low income as defined in article 2 of the 2012 Order.

Subject to paragraph (2), the cost score for a surplus action is—

A × B

Where a surplus action is the repair or replacement of a qualifying boiler, the cost score for that action is the cost saving for that action calculated in accordance with article 17 of the 2012 Order multiplied by the relevant conversion factor.

If the Administrator decides not to approve a transfer under paragraph (3) it must notify C and D of the reasons for that decision.

If a transfer is approved, S is treated as achieved by D and not C.

All or part of a supplier’s obligation may be transferred from that supplier (“A”) to another supplier (“B”) (“a transfer”) if the transfer is approved by the Administrator.

A supplier may apply to the Administrator, in writing, by no later than F6931st December 2018 for a qualifying action (“Q”) or a surplus action (“S”) to be credited against a different obligation to the one it is credited against at the time the application is made.

The Administrator must submit to the Secretary of State a report each month, commencing in July 2015, setting out the progress which suppliers have made towards meeting their obligations under this Order.

A supplier must provide to the Administrator such information as the Administrator may require relating to the cost to the supplier of achieving its obligations under this Order.