Citizens Advice response to Government consultation on amending the ECO4 order to allow cost recovery via grant funding
Citizens Advice supports the Government’s intention to remove the risk of increases to energy bills as a result of supplier overspend during the ECO4 scheme, which would be a regressive way to address these costs and would counteract much-needed efforts to bring down energy bills.
As a result, we agree that the ECO4 order may need to be amended to allow the Government to pay suppliers directly through Exchequer funding. However, we are concerned that this means that the taxpayer will be making retrospective payments towards the scheme. The Government must carefully assess the efficiency of suppliers' spending on ECO4 to determine a fair level of payment.
It is also vital that retrospective payments for a former scheme do not impact the levels of funding available for fuel poverty reduction in the future. Any payments to suppliers must not be taken from the Warm Homes Plan budget, which must be delivered in full - including action to deliver upgrades to those in fuel poverty, protect consumers who make changes to their homes, and offer advice to help people navigate the process.