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The Electricity and Gas (Energy Company Obligation) Order 2022

Draft Legislation:

This is a draft item of legislation. This draft has since been made as a UK Statutory Instrument: The Electricity and Gas (Energy Company Obligation) Order 2022 No. 875

Approval as a standard innovation measure or substantial innovation measure

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34.—(1) On receiving an application under article 33, the Administrator must decide whether to—

(a)approve the measure as a standard innovation measure;

(b)approve the measure as a substantial innovation measure; or

(c)reject the application.

(2) The Administrator must not approve a measure as a standard innovation measure or a substantial innovation measure unless it is satisfied that—

(a)the measure is capable of resulting in a reduction in the cost of heating domestic premises;

(b)the measure description stated in the application is accurate and contains sufficient detail to distinguish the measure from comparable measures;

(c)the explanation included in the application in accordance with article 33(2)(b) is reasonable;

(d)the standards stated in the application in accordance with article 33(2)(d) include provisions designed to ensure the safety and efficacy of the measure on its installation;

(e)the measure is—

(i)a type of measure listed in Table A.1, A.2 or A.3 in Annex A to PAS 2030:2019;

(ii)a certified product under MCS; or

(iii)certified, by a person accredited to ISO/IEC 17065:2012, as conforming to the standards stated in the application in accordance with article 33(2)(d); and

(f)the measure is not—

(i)an ECO3 innovation measure;

(ii)a district heating connection;

(iii)the installation of equipment for the generation of heat wholly or partly from coal, biofuel, oil or liquefied petroleum gas;

(iv)the installation of equipment for the generation of heat wholly or mainly from a non-renewable source; or

(v)a repair.

(3) The Administrator may only approve a measure as a substantial innovation measure if—

(a)the assessment provided with the application in accordance with article 33(2)(c) states that the measure is a substantial improvement on comparable measures; and

(b)the Administrator is satisfied that the measure is a substantial improvement on comparable measures.

(4) The Administrator may only approve a measure as a standard innovation measure if the threshold in paragraph (3) is not met.

(5) For the purposes of this article, when considering whether a measure is a substantial improvement on comparable measures, the Administrator may have regard to such matters as it thinks fit, including the significance or extent, as compared to comparable measures, of any—

(a)increase in the annual cost savings of the measure;

(b)decrease in the cost of installing the measure;

(c)increase in the durability of the measure;

(d)improvement in the overall environmental impact of the measure; or

(e)reduction in the disruption to householders during the installation of the measure.

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