The Electricity and Gas (Energy Company Obligation) Order 2018

• (2A) A qualifying action meets the conditions in this paragraph if the qualifying action is a measure which—

• (a) is referred to in PAS 2030:2019;

• (b) is installed in accordance with PAS 2030:2019 and PAS 2035:2019 by, or under the responsibility of, a PAS 2030:2019 certified installer; and

• (c) is completed before 1st July 2021.

• (3) In paragraph (2)—

• “K” is the cost savings for the qualifying action determined in accordance with—the Standard Assessment Procedure;the Reduced Data Standard Assessment Procedure; orfollowing an application under paragraph (4) in respect of the district heating connection, an alternative methodology approved by the Administrator under paragraph (6);

• “L” is—1.25, in the case of a district heating connection which is—a qualifying action by virtue of meeting the condition in article 17; andinstalled at domestic premises described as relevant F or G owner-occupied premises in Schedule 4;1, in any other case.

• (4) For the purposes of determining the cost savings achieved by a district heating connection (“the proposed connection”), a participant may apply to the Administrator in writing for approval of a methodology other than the Standard Assessment Procedure or the Reduced Data Standard Assessment Procedure (“an alternative methodology”).

• (5) An application under paragraph (4) must be made—

• (a) in the case of a district heating connection installed before the commencement date, before the measure is notified to the Administrator under article 24;

• (b) in any other case, before the proposed connection is installed.

• (6) The Administrator may approve an alternative methodology if—

• (a) it is satisfied that—

• (i) neither the Standard Assessment Procedure nor the Reduced Data Standard Assessment Procedure contain an appropriate methodology for determining the cost savings achieved by the proposed connection; and

• (ii) the alternative methodology is an appropriate methodology for determining the cost savings achieved by the proposed connection; or

• (b) the alternative methodology is published by, or on behalf of, the Secretary of State as a replacement for the Standard Assessment Procedure or the Reduced Data Standard Assessment Procedure.

The score for demonstration actions

28

• (1) This article applies for the purpose of calculating the score of a qualifying action which is a demonstration action.

• (2) The score of a demonstration action is calculated in accordance with the following formulae—

• (a) in the case of a qualifying action which meets the conditions in paragraph (2A)—

$M×6.24$

• (b) in all other cases—

$M×5.2$

• (2A) A qualifying action meets the conditions in this paragraph if the qualifying action is a measure—

• (a) which is referred to in PAS 2030:2019;

• (b) which is installed in accordance with PAS 2030:2019 and PAS 2035:2019 by, or under the responsibility of, a PAS 2030:2019 certified installer; and

• (c) in respect of which installation is completed before 1st July 2021.

• (3) In paragraph (2), “M” is the lower of—

• (a) the actual cost as stated in the notification of the demonstration action in accordance with article 24(1)(c)(i); and

• (b) the estimated cost as stated in the application for approval of the demonstration action in accordance with article 20(2)(a)(vii).

The score for innovation measures

29

• (1) This article applies for the purpose of calculating the score of a qualifying action which—

• (a) is an innovation measure; and

• (b) is not a demonstration action or a monitored measure.

• (2) Where this article applies, the score is calculated in accordance with the following formula—

$N × P$

• (3) In paragraph (2)—

• “N” is the cost savings for the qualifying action calculated in accordance with article 32(2); and

• “P” is—in the case of a qualifying action which is designated as an excess innovation measure, 1;in any other case, 1.25.

• (4) A participant may apply for a qualifying action which is an innovation measure promoted by the participant—

• (a) to be designated as an excess innovation measure for the purposes of this article and article 12; or

• (b) if it is already designated as an excess innovation measure for those purposes, to be no longer so designated.

• (5) An application under paragraph (4) must—

• (a) be made to the Administrator, in writing, by no later than 30th June 2022; and

• (b) include such information relating to the qualifying action as the Administrator may require.

• (6) The Administrator must approve an application if it is satisfied that the application is made in accordance with paragraphs (4) and (5).

• (7) If the Administrator approves an application—

• (a) made under paragraph (4)(a), the qualifying action is designated as an excess innovation measure for the purposes of this article and article 12;

• (b) made under paragraph (4)(b), the qualifying action ceases to be designated as an excess innovation measure for the purposes of this article and article 12.

The score for monitored measures

30

• (1) This article applies for the purpose of calculating the score of a qualifying action which—

• (a) is a monitored measure; and

• (b) is not a demonstration action.

• (2) Where this article applies, the score is the greater of—

• (a) the score for the qualifying action calculated in accordance with article 32(2); and

• (b) either—

• (i) the score for the qualifying action calculated in accordance with the methodology stated in the application for approval of the monitored measure in accordance with article 22(2)(a)(iii); or

• (ii) if the conditions in paragraph (2A) are met, the score under paragraph (i) multiplied by 1.2.

• (2A) The conditions in this paragraph are met if the qualifying action is a measure which—

• (a) is referred to in PAS 2030:2019;

• (b) is installed in accordance with PAS 2030:2019 and PAS 2035:2019 by, or under the responsibility of, a PAS 2030:2019 certified installer; and

• (c) is completed before 1st July 2021.

• (3) Where the score for the qualifying action is the score under paragraph (2)(b), the Administrator must publish, on its website, a summary of the methodology referred to in that paragraph.

The score for surplus actions

31

• (1) This article applies for the purpose of determining the score of a qualifying action which is a surplus action.

• (2) Where a cost score was attributed to the surplus action by the Administrator under article 25 of the 2014 Order, the score is the cost score so attributed.

• (3) Where a cost score was not attributed to the surplus action under article 25 of the 2014 Order, the score is the cost score calculated in accordance with articles 19 and 23 of the 2014 Order.

• (4) In this article, “cost score” has the meaning given in article 2 of the 2014 Order.

The score for all other qualifying actions

32

• (1) This article applies for the purpose of calculating the score of a qualifying action which is not—

• (a) a district heating connection;

• (b) a demonstration action;

• (c) an innovation measure;

• (d) a monitored measure; or

• (e) a surplus action.

• (2) Where this article applies, the score is calculated by determining the cost savings for the qualifying action in accordance with the following formulae—

• (a) in the case of a qualifying action which meets the conditions in paragraph (2A)—

$Q×R×1.2$

• (b) in all other cases—

$Q×R$

• (2A) A qualifying action meets the conditions in this paragraph if the qualifying action is a measure which—

• (a) is referred to in PAS 2030:2019;

• (b) is installed in accordance with PAS 2030:2019 and PAS 2035:2019 by, or under the responsibility of, a PAS 2030:2019 certified installer; and

• (c) is completed before 1st July 2021.

• (3) In paragraph (2)—

• “Q” is the cost savings for the qualifying action calculated in accordance with a methodology published by the Administrator under article 33;

• “R” is—1.35, in the case of a qualifying action which is installed to improve the insulating properties of non-gas fuelled premises;4, in the case of a qualifying action which is the replacement of a broken boiler with another boiler and which is—a measure to which article 12(9) applies; ora renewable heating measure;2, in the case of a qualifying action which is the replacement of a broken boiler with another boiler and which is not a qualifying action described in paragraph (b);2.4, in the case of a qualifying action which is the replacement of a broken electric storage heater with another electric storage heater;1.25, in the case of a qualifying action which—is not a qualifying action described in paragraph (a), (b) , (ba) or (c);is a qualifying action by virtue of meeting the condition in article 17; andis installed at domestic premises described as relevant F or G owner-occupied premises in Schedule 4;1, in all other cases.

• (4) In this article—

• “broken boiler” means a boiler that has broken down and cannot be economically repaired;

• “broken electric storage heater” means an electric storage heater that has broken down and cannot be economically repaired;

• “non-gas fuelled premises” means domestic premises where, both before and after the installation of the qualifying action—the main space heating system for the premises is not fuelled by mains gas; andthe premises are not connected to a district heating system.

Publication of a cost savings methodology

33

• (1) The Administrator must publish, on its website, a methodology for the purpose of calculating the cost savings of a qualifying action under article 32.

• (2) Under the methodology published by the Administrator the calculation of the cost savings must be based on—

• (a) in the case of a qualifying action which is the repair of a boiler or electric storage heater, an expected lifetime for the qualifying action of 2 years;

• (b) in the case of a qualifying action which is the replacement of a broken boiler with another boiler, an expected lifetime for the qualifying action of 3 years;

• (c) in the case of a qualifying action which is the replacement of a broken electric storage heater with another electric storage heater, an expected lifetime for the qualifying action of 5 years;

• (d) in the case of a qualifying action which is the installation of cavity wall insulation and which is accompanied by an appropriate warranty, an expected lifetime for the qualifying action of 42 years;

• (e) in the case of a qualifying action which is the installation of insulation applied to the floor, walls and ceiling of a mobile home and which is accompanied by an appropriate warranty, an expected lifetime for the qualifying action of 30 years;

• (f) in the case of a qualifying action which is the installation of solid wall insulation and which is accompanied by an appropriate warranty, an expected lifetime for the qualifying action of 36 years; ...

• (fa) in the case of a qualifying action which is the installation of room-in-roof insulation and which, if completed on or after 1st July 2020, is accompanied by an appropriate warranty, an expected lifetime for the qualifying action of 42 years;

• (fb) in the case of a qualifying action which is the installation of underfloor insulation and which, if completed on or after 1st July 2020, is accompanied by an appropriate warranty, an expected lifetime for the qualifying action of 42 years;

• (fc) in the case of a qualifying action which is a first time heating system other than the installation of a district heating connection, an expected lifetime for the qualifying action of 20 years; and

• (g) in the case of any other qualifying action, an expected lifetime for the qualifying action that is specified in, or determined in accordance with, the methodology.

• (3) Before publishing a methodology under this article, the Administrator must have regard to—

• (a) the Standard Assessment Procedure and the Reduced Data Standard Assessment Procedure, or to any methodology published by, or on behalf of, the Secretary of State as a replacement for the Standard Assessment Procedure or the Reduced Data Standard Assessment Procedure; and

• (b) the desirability of the methodology being easy to use.

• (4) In this article—

• “appropriate warranty” means a warranty which the Administrator is satisfied—is supported by a mechanism that gives assurance that—funds will be available to honour the warranty; andthe installation of the insulation and products used in the insulation comply with a quality assurance framework;is for 25 years or more; andprovides for repair, or replacement where appropriate, of the insulation, covering the cost of remedial and replacement works and materials;

• “broken boiler” and “broken electric storage heater” have the same meaning as in article 32;

• “room-in-roof” in relation to insulation has the same meaning as in article 19;

• “underfloor insulation” means insulation of all or part of the floor of a room in a building, where that floor, or that part of the floor, is not situated above a habitable room.

PART 8 — Transfers

Transfers of qualifying actions

34

• (1) A relevant supplier may apply to the Administrator with another relevant supplier for one or more qualifying actions promoted by the relevant supplier (“A”) to be treated as promoted by the other relevant supplier (“B”) (“a proposed transfer”).

• (2) An application under paragraph (1) must—

• (a) be made by A and B, in writing, on or before 30th June 2022; and

• (b) include such information relating to the proposed transfer as the Administrator may require.

• (3) The Administrator must not approve the application if—

• (a) the application is made in respect of an in-fill measure or a primary action with which an in-fill measure is linked, unless the application is made in respect of the in-fill measure and all of the primary actions with which the in-fill measure is linked; or

• (b) the application is made in respect of a secondary heating measure or a measure that is a related primary measure for a secondary heating measure, unless the application is made in respect of the secondary heating measure and its related primary measure.

• (4) In paragraph (3)—

• (a) “in-fill measure” and “primary actions” have the same meaning as in article 14(4); and

• (b) “related primary measure” has the meaning given in the definition of “secondary heating measure” in article 2.

• (5) If the Administrator decides not to approve the application it must notify A and B in writing of the reasons for that decision.

• (6) If the Administrator approves the application—

• (a) the qualifying actions in respect of which the application was made are treated as promoted by B and not A; and

• (b) the Administrator must notify A and B in writing of the date on which the application was approved.

Transfer of obligations

35

• (1) A participant may apply to the Administrator with another participant for all or part of its total home-heating cost reduction obligation or total solid wall minimum requirement to be transferred from the participant (“A”) to the other participant (“B”) (“a proposed transfer”).

• (2) An application under paragraph (1) must—

• (a) be made by A and B, in writing, on or before 30th September 2021;

• (b) state in respect of which one of the following the application is being made (“the relevant obligation”)—

• (i) a total home-heating cost reduction obligation; or

• (ii) a total solid wall minimum requirement;

• (c) state the amount of its relevant obligation that A intends to transfer to B (“the proposed transfer amount”); and

• (d) include such other information relating to the proposed transfer as the Administrator may require.

• (3) The Administrator must not approve the application if—

• (a) the proposed transfer amount exceeds A's relevant obligation;

• (b) approval of the application would result in A or B's total solid wall minimum requirement being greater than its total home-heating cost reduction obligation;

• (c) having regard to section 30O of the Gas Act 1986 and section 27O of the Electricity Act 1989 (maximum amount of penalty or compensation), the Administrator considers that, if the application were approved, there is a significant risk that it would adversely affect the Administrator's ability to enforce the requirements placed on B under this Order; or

• (d) where A and B are not members of the same group, the Administrator considers that, if the application were approved, there is a significant risk that B will be unable to achieve its total home-heating cost reduction obligation or total solid wall minimum requirement.

• (4) If the Administrator decides not to approve the application it must in writing—

• (a) notify A of any reasons for that decision relating to A; and

• (b) notify B of any reasons for that decision relating to B.

• (5) If the Administrator approves the application—

• (a) A's relevant obligation is treated as reduced by the proposed transfer amount, and the Administrator must notify A in writing of its reduced relevant obligation; and

• (b) B's relevant obligation is treated as increased by the proposed transfer amount, and the Administrator must notify B in writing of its increased relevant obligation.

PART 9 — Information and enforcement

Final determination and reporting

36

• (1) The Administrator must determine whether a participant has achieved its total home-heating cost reduction obligation.

• (2) The Administrator must notify the participant in writing of its determination under paragraph (1) by no later than 30th September 2022.

• (3) The Administrator must submit to the Secretary of State a report each month setting out the progress which participants have made towards achieving their total home-heating cost reduction obligation.

• (4) The first report under paragraph (3) is to be submitted in the month following the month in which the commencement date occurs.

• (5) The final report under paragraph (3) is to be submitted in April 2022.

• (6) Not later than 30th September 2022 the Administrator must submit to the Secretary of State a report setting out whether participants achieved the overall home-heating cost reduction target.

Information from participants

37

The Administrator may require a participant—

• (a) to provide it with such information, or information of such nature, as it may specify—

• (i) about the participant's proposals for complying with any requirement under this Order; or

• (ii) relating to the cost to the participant of achieving its total home-heating cost reduction obligation; and

• (b) to produce to it evidence, of such kind as it may specify, demonstrating that the participant is complying with, or has complied with, any requirement under this Order.

Publication of energy savings achieved by participants and provision of information to the Secretary of State by participants

38

• (1) At least once in each reporting year the Secretary of State must publish, on a website maintained by or on behalf of the Secretary of State, the energy savings achieved—

• (a) by each participant by qualifying actions which—

• (i) have been promoted by the participant; and

• (ii) are not surplus actions; and

• (b) by all qualifying actions other than surplus actions.

• (2) No more than once each reporting year, the Secretary of State may require a participant to provide to the Secretary of State—

• (a) aggregated statistical information on its final customers (identifying significant changes to previously submitted information); and

• (b) current information on final customers' consumption, including, where applicable, load profiles, customer segmentation and geographical location of customers.

• (3) In this article—

• (a) “energy savings” and “final customer” have the meaning given by Article 2 of the Energy Efficiency Directive;

• (b) “aggregated statistical information”, “customer segmentation” and “load profiles” have the same meaning as in the Energy Efficiency Directive;

• (c) “the Energy Efficiency Directive” means Directive 2012/27/EU of the European Parliament and of the Council on energy efficiency ; and

• (d) “reporting year” means 2019, 2020, 2021 and 2022.

Enforcement

39

A requirement placed on a participant under this Order is a relevant requirement for the purpose of Part 1 of the Electricity Act 1989 and Part 1 of the Gas Act 1986.

SCHEDULE 1 — Domestic premises which are social housing

1

Domestic premises in England and Wales are “social housing” if the premises are let below the market rate and—

• (a) the relevant interest in those premises is registered as belonging to a social landlord; or

• (b) if no relevant interest in the premises has been registered, the premises are let by a social landlord other than under a lease granted pursuant to Part 5 of the Housing Act 1985 .

2

Domestic premises in Scotland are “social housing” if the premises are let below the market rate and—

• (a) the relevant interest in the premises is registered as belonging to a social landlord; or

• (b) if no relevant interest in the premises has been registered, the premises are let by a social landlord other than under a lease granted pursuant to sections 61 to 84 of the Housing (Scotland) Act 1987 , as modified by section 84A of that Act .

3

For the purposes of this Schedule—

• (a) in respect of premises in England and Wales, a relevant interest is registered if it is registered in the register of title maintained by Her Majesty's Land Registry; and

• (b) in respect of premises in Scotland, a relevant interest is registered if it is—

• (i) registered in the Land Register of Scotland; or

• (ii) recorded in the Register of Sasines.

4

In this Schedule—

• “relevant interest” means—in respect of premises in England and Wales—the freehold estate, unless the whole of the premises have been let under a registered lease; orthe leasehold estate, unless the whole of the premises have been further let under a registered lease; andin respect of premises in Scotland—the owner's interest or right, unless the whole of the premises have been let under a registered lease; orthe lessee's interest under a lease, unless the whole of the premises have been further let under a registered lease;

• “social landlord” means—in respect of premises in England—a local housing authority, within the meaning of section 1 of the Housing Act 1985 ;a housing association, within the meaning of section 5 of the Housing Act 1985 ;a housing trust, within the meaning of section 6 of the Housing Act 1985; ora charity, within the meaning of section 1 of the Charities Act 2011 ;in respect of premises in Scotland, a person so described in section 165 of the Housing (Scotland) Act 2010 ; andin respect of premises in Wales—a local housing authority, within the meaning of section 1 of the Housing Act 1985;a housing association, within the meaning of section 5 of the Housing Act 1985;a housing trust, within the meaning of section 6 of the Housing Act 1985;a charity, within the meaning of section 1 of the Charities Act 2011;a person listed in section 80(1) of the Housing Act 1985 ; ora body registered as a social landlord under Chapter 1 of Part 1 of the Housing Act 1996 .

SCHEDULE 2 — Help to heat group eligibility

1

The benefits referred to in the definition of “help to heat group” in article 14 are—

• (a) armed forces independence payment under a scheme established under section 1 of the Armed Forces (Pensions and Compensation) Act 2004 ;

• (b) attendance allowance under Part 3 of the 1992 Act ;

• (c) carer's allowance under Part 3 of the 1992 Act ;

• (d) child benefit under Part 9 of the 1992 Act ;

• (e) child tax credit under section 8 of the Tax Credits Act 2002 ;

• (f) constant attendance allowance under—

• (i) article 14 of the Personal Injuries (Civilians) Scheme 1983 , or

• (ii) article 8 of the Naval, Military and Air Forces etc (Disablement and Death) Service Pensions Order 2006 ;

• (g) disability living allowance under Part 3 of the 1992 Act ;

• (h) guarantee credit (and for this purpose “guarantee credit” is to be construed in accordance with sections 1 and 2 of the State Pension Credit Act 2002 );

• (i) income-related employment and support allowance within the meaning of section 1 of the Welfare Reform Act 2007 ;

• (j) income-based jobseeker's allowance within the meaning of section 1 of the Jobseekers Act 1995 ;

• (k) income support under Part 7 of the 1992 Act ;

• (l) industrial injuries disablement benefit under Part 5 of the 1992 Act ;

• (m) personal independence payment under Part 4 of the Welfare Reform Act 2012 ;

• (n) severe disablement allowance under Part 3 of the 1992 Act ;

• (o) universal credit under Part 1 of the Welfare Reform Act 2012 ;

• (p) mobility supplement as defined in section 150(2) of the 1992 Act ;

• (q) working tax credit under section 10 of the Tax Credits Act 2002 .

2

The condition as to income in paragraph 3 is specified in relation to child benefit.

3

Where the person claiming child benefit is—

• (a) a single claimant, the condition as to income is that the claimant's annual income from all sources does not exceed the amount set out in the first row of the table in the column corresponding to the number of children or qualifying young persons for whom the claimant is responsible;

• (b) a member of a couple, the condition as to income is that the couple's combined annual income from all sources does not exceed the amount set out in the second row of the table in the column corresponding to the number of children or qualifying young persons for whom at least one member of the couple is responsible.

Type of claimant	Number of children or qualifying young persons	Number of children or qualifying young persons	Number of children or qualifying young persons	Number of children or qualifying young persons
Type of claimant		1	2	3	4 or more
Single claimant	£18,500	£23,000	£27,500	£32,000
Member of a couple	£25,500	£30,000	£34,500	£39,000

4

For the purposes of paragraph 3, whether a person is responsible for a child or qualifying young person is to be determined in accordance with Part 9 of the 1992 Act .

5

In this Schedule—

• “1992 Act” means the Social Security Contributions and Benefits Act 1992 ;

• “child” and “qualifying young person” have the same meaning as in Part 9 of the 1992 Act ;

• “couple” means—two people who are married to, or civil partners of, each other and are members of the same household; ortwo people who are not married to, or civil partners of, each other but are living together as if they were a married couple or civil partners;

• “single claimant” means a person who is not a member of a couple.

SCHEDULE 3 — Requirements for warranties for boiler installations

1

The requirements referred to in article 18(1)(d)(ii) and (5)(d) for a warranty are as follows.

2

Subject to paragraph 3, the warranty must provide for the rectification, without any charge to a consumer, of all problems which affect the functioning of the boiler or the heating system it serves and which—

• (a) relate to its installation or its suitability for the heating system it serves; and

• (b) are notified to the person providing the warranty within 2 years of the boiler being installed.

3

The warranty is not required to provide for the rectification of a problem which—

• (a) is covered by a warranty provided by the manufacturer of the boiler; or

• (b) arises after the boiler is installed where that problem arises from one or more of—

• (i) negligence of a third party;

• (ii) accident caused by a third party;

• (iii) misuse of the boiler by a third party;

• (iv) repair of the boiler by a third party.

4

In paragraph 3, “third party” means a person other than—

• (a) the person who installed the boiler;

• (b) the person providing the warranty; or

• (c) a person acting on behalf of a person in sub-paragraph (a) or (b).

5

The warranty must be accompanied by confirmation in writing from an occupier of the domestic premises at which the boiler is installed that, to that person's knowledge, no consumer has been charged for the warranty.

SCHEDULE 4 — Relevant F or G owner-occupied premises

1

A qualifying action is installed at domestic premises that are “relevant F or G owner-occupied premises” if—

• (a) a relevant local authority has made a statement in writing that, in the opinion of the local authority, the premises are occupied—

• (i) by a household living on a low income in a home which cannot be kept warm at a reasonable cost; or

• (ii) by a household living on a low income and vulnerable to the effects of living in a cold home;

• (b) the premises are owner-occupied premises; and

• (c) the condition in paragraph 2 or 3 is met.

2

The condition in this paragraph is that a post-installation EPC expresses the energy performance rating of the premises as band F or G.

3

The condition in this paragraph is that—

• (a) a pre-installation EPC expresses the energy performance rating of the premises as band F or G; and

• (b) an owner or occupier of the premises has confirmed in writing that, to the best of its knowledge and belief, no changes were made to the premises, after the pre-installation EPC was issued and before the qualifying action was installed, which would increase the energy performance rating of the premises to band A, B, C, D or E.

4

In this Schedule, “relevant local authority” means a local authority that has published, on its website, a statement of intent made in respect of the local authority, and for the purpose of this definition “statement of intent” has the meaning given in article 17(5).

Signed

Claire Perry — Minister of State for Climate Change and Industry — 2018-11-12

The Scottish Ministers consent to the making of this Order.

Kevin Stewart — A member of the Scottish Government — 2018-11-07

Explanatory note

(This note is not part of the Order)

Footnotes

Editorial notes