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First-time central heating ECO funding restriction scrapped helping landlords hit MEES targets

First-time central heating ECO funding restriction scrapped helping MEES landlords

The Government have published their response to their latest ECO consultation, Energy Company Obligation (ECO3): improving consumer protection which will help landlords meet MEES (Minimum Energy Efficiency Standards) requirements.

New drafted legislation outlines that landlords can now receive funding for first-time central heating through the ECO scheme in private rented properties regardless of EPC rating.

If the tenant of the property qualifies under the ECO scheme’s eligibility criteria, funding can be granted.

However, for a first-time central heating system to be fitted, cavity wall and loft/roof insulation must also be installed in the property.

The changes class first-time central heating as a high cost measure under current MEES legislation in line with the same rules regarding ECO funding for external wall insulation and renewable heating.

Previously, properties rated in EPC bands F and G were not eligible for first-time central heating for landlords not meeting MEES standards.

Changes to consumer protection

In addition, the consultation response also requires companies installing energy efficiency measures to have the TrustMark accreditation, as well as the updated 2019 PAS standards, to improve consumer protection in the scheme.

The new TrustMark scheme has been developed to help reassure households having work done that the companies have met the appropriate standards for installing insulation and new central heating systems in their homes.

Business, Energy and Clean Growth Minister Kwasi Kwarteng said: “This new scheme will guarantee households the peace of mind that workers installing energy efficiency measures in their homes are trusted tradespeople.”

The Government will lay amending regulations in Parliament which are expected to come into force on 1st January 2020.

Ofgem will issue guidance on the new legislation ahead of the regulations coming into force.

The Government’s full consultation response can be found here