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
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
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
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