CO-OP Energy agrees to energy efficiency measures

Ofgem has announced that, following constructive engagement with Ofgem, CO-OP Energy has agreed to deliver additional energy efficiency measures after the company did not meet its Energy Company Obligation (ECO3).

CO-OP Energy was a domestic supplier previously but exited the market in August 2019. It has committed to make up any shortfall in energy savings against its legal requirements. ECO3 was a government energy efficiency scheme, which ran between 2018 and 2022 in Great Britain, administered by Ofgem, to promote energy efficiency measures and to help fuel poor and vulnerable households heat their homes and cut bills, for example by replacing a broken heating system or upgrading an inefficient heating system.

CO-OP Energy has agreed with Ofgem to make up the shortfall and recognised its non-compliance with its obligation, having only achieved 36.37% of its cost saving (or obligation) target by 31st March 2022. Suppliers are allocated an overall target based on their share of the domestic energy market in Great Britain.

CO-OP Energy has engaged productively with the energy regulator around their non-compliance, and alternative action has been agreed between Ofgem and CO-OP Energy to install energy efficiency measures to make up the £35m shortfall in their obligation.

This will see the company deliver its remaining outstanding obligation and an additional £3.5m in energy bill savings by 31 December 2024. This will ensure that more vulnerable consumers and those in fuel poverty benefit from energy efficiency measures.

Cathryn Scott, Director of Enforcement and Emerging Issues at Ofgem said “Now, more than ever, we need to prioritise energy efficiency, and it is vital that energy suppliers take their obligations under the government’s energy efficiency schemes seriously. These schemes reduce energy consumption, as well as consumer bills, delivering real benefits for low-income households. The action we have agreed with CO-OP will ensure that consumers benefit from these important energy efficiency measures, and we welcome their engagement with us on the matter.”

“As we move forward with the new Energy Company Obligation (ECO4), we expect suppliers to be proactive in ensuring they achieve compliance, as well as ensuring they act where they are falling short ahead of key milestone deadlines. We will take robust action where suppliers fail to meet expectations.”