What is ECO Brokerage?

What is ECO Brokerage?

ECO Brokerage was introduced by the Government to try and keep Energy Company Obligation (ECO) funding competitive, clear and transparent throughout the market.

Energy Companies have an opportunity to bid for the calculated ‘Life Time Savings (LTS)’ assigned to installations fulfilled by accredited contractors.

The ‘savings’ will be bundled into specific ‘lots’ and go to the highest bidder to contribute to their annual ECO targets. Contractors will then receive the funds to carry out their installations.

Although ECO brokerage improves the transparency of the market, it can be risky and installers can still access ECO funding directly through Manging Agents or Energy Companies if they have a delivery contract in place. Many of these contracts could offer more consistent ECO rates than the brokerage system.

How ECO Brokerage Works:

Installers will build up a profile of installations that could be carried out within a specific timeframe.

They will calculate the amount of LTS each measure will produce in a certain property (e.g. the money the householder would save by having the measure installed, etc).

Once these figures have been collated, installers will be able to bundle their collective savings into specific ‘lots’ (e.g. £5000 of ‘LTS’). They will then submit each ‘lot’ onto ECO brokerage and set a reserve price. Energy Companies will then bid in a blind online auction; and as long as the buying price exceeds the reserve price, the ‘lot’ will be allocated to the highest bidder.

The auction operates every two weeks and the previous brokerage rates are then published to set realistic benchmarks for partaking installers. ECO brokerage is essentially a mechanism to prompt healthy competition amongst Utilities.

Though YES Energy Solutions has taken part in ECO Brokerage in the past, we mainly work directly with Energy Companies on specific ECO funding delivery contracts. These contracts support our national SME installer network and energy efficiency schemes with Local Authorities and Housing Associations.

Find out more about our ECO funding facilities:

T: 01422 880100 (office hours: 9am - 5pm, Mon - Fri)

Or Contact Us

Interested in joining our installer network and accessing our ECO funding? Register today.

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