Energy Company Obligation scheme

It is more important than ever to make sure that every home is adequately insulated. The government operates the Energy Company Obligation scheme, gives free boilers, and financial help to pay heating bills. There are also insulation programmes from energy providers across the UK.

A third of British homes, though, are old constructions with poor insulation. According to British Gas, homes that have poor insulation end up wasting 25% of their heat. This is what the Energy Company Obligation aims to help with – energy loss. Considering that the average home spends nearly £600 each year just on its winter heating (the average home spends more than £1200 on all its energy needs put together), savings from good insulation could be as high as £150 a year.

Good insulation isn’t just about saving some money. According to recent surveys, 90% of British households ration their heat in winter. Many people are so burdened by their utility bills that they take drastic measures to cut their energy bills, sometimes even turning off their heat altogether. More than 15,000 people, mainly the poor and the elderly, die each winter from too little heat. In these households, the considerable savings made possible by better insulation or benefits from the Energy Company Obligation scheme can actually save lives.

Energy providers Energy Company Obligation schemes

Companies have many schemes in place to help the poor with free insulation, all in addition to ECO. In the past, discounted or free insulation grants were available to anyone who applied under the government’s Carbon Emissions Reduction Target plan. The government got funding for this scheme by adding a levy to every energy bill in the country. Since the CERT plan ended, additional programmes to help families save money are offered, including the government’s Energy Company Obligation scheme. You can get free or discounted insulation under this scheme if you qualify as a vulnerable citizen. You are considered vulnerable if:

-Your income is below £15,860 and you receive tax credits.
-You get pension credit, income support or other income-based benefits.
-You are over 60 and have dependents who are children or are disabled.

For a full list of the rules that determine who qualifies, you should take a look at the Share the Warmth page on British Gas at britishgas.co.uk/products-and-services/energy-saving/home-insulation/share-the-warmth.html.

Free insulation

Scottish Power offers free loft and cavity wall insulation. You get free insulation by calling up 0845 601 7836. All Scottish Power customers qualify. The help is for families who qualify on a low income or benefits though. If you aren’t with Scottish Power, you can still qualify if you are a vulnerable citizen. All free insulation is provided by ScottishPower Energy Retail Ltd, also known as “SPERL”.

EDF Energy as well as Eon don’t simply offer Energy Company Obligation scheme, this provider will also in some instances pay for free insulation for the vulnerable or a boiler. Since many people in need aren’t well-enough informed to know about the Energy Company Obligation scheme, EDF Energy offers additional financial help. The aim is to help a vulnerable person get free insulation to reduce their heating bills. The vulnerable person requesting insulation (on 0800 084 3863) only needs to apply. Once the insulation is installed, the vulnerable person gets to start saving money each year.

nPower offers discounted insulation to anyone as well, no matter the energy provider. If you’re willing to pay 149 for your insulation, nPower gives you discounted cavity wall insulation and loft insulation. You need to call 0800 980 2135 to apply.

You can get more than just free insulation from Energy Company Obligation scheme

Under the Energy Company Obligation scheme, the government requires the Big Six energy suppliers to give back to the community. Free insulation is only one of their obligations. They are also required to hand out free condensing boilers (worth £2,300 each) to poor and vulnerable people who don’t have an existing efficient boiler. If you do have an efficient boiler, but it doesn’t work well, you can ask for free repairs under this scheme.

Only vulnerable, low income families qualify for free boilers. You don’t qualify, though, if you are a council tenant or if your home is part of a housing association property. You simply need to call 0300 123 1234 in England to apply. If you do qualify, you can expect to wait up to 12 weeks for your free boiler to come through.