In its response to BEIS’s recently closed ECO3 consultation on Tuesday 1 May, the regulator said it agrees with the majority of proposals, particularly where there are alignments with its Consumer Vulnerability Strategy objectives. Ofgem supported retaining the current supplier participation threshold and considers that lowering the threshold would result in increased costs in administering the scheme and in the auditing of newly obligated suppliers. Proposed amendments to the taper mechanism are expected to reduce administrative burdens for smaller suppliers. While it agrees with the move to a single Affordable Warmth obligation, the regulator confirmed its expectation that BEIS rather than Ofgem will calculate carbon savings attributed to the measures installed under ECO3.
