The Government has written to energy suppliers demanding more transparency about the impact of a fuel efficiency scheme on household bills.
Ed Davey’s letter requires the firms to provide information on the proportion of costs which are attributable to the Government’s energy company obligation measure.
The Energy Secretary has asked suppliers to provide information on how much Eco costs them and how different customers are asked to foot the bill.
A previous letter sent to the energy firms last year requested information on a voluntary basis, but the Energy Secretary said the details provided by the companies were “not sufficient” to provide a “solid evidence base” for the Government’s review of the scheme.
The industry revealed the average cost of Eco to households was £50, but one firm – which sources refused to identify because of the commercial sensitivity – claimed it added £75 to bills.
Since then the Government has set out plans to change the home insulation scheme, which is delivered by major energy suppliers, in a move to shave around £30 to £35 off bills.
In his letter Mr Davey requested firms to provide information on the delivery and administrative costs associated with the scheme and the “proportion of consumer bills attributable to Eco”.
He also requested information on “the ways in which Eco costs are apportioned across different types of customer and account”.
A spokesman for industry body Energy UK said: “Energy UK welcomes Ed Davey’s letter as a contribution to the industry’s ongoing work to make Eco as open and transparent as possible.
“By making the costs and logistics of Eco clearer we can better inform future energy efficiency schemes and make sure that they work for the consumer.”
Recommended for you
