The Electricity and Gas (Energy Company Obligation) Order 2022

Publication of annual cost savings methodology: other qualifying actions

76.—(1) The Administrator must publish, on its website, a methodology for the purpose of determining the annual cost savings of a qualifying action other than a data light measure, a standard alternative methodology measure, a basic heating repair or replacement measure or a qualifying action referred to in article 68(1)(b).

(2) Under the methodology published by the Administrator—

(a) the initial determination of the annual cost savings must—

(i) be based on—

(aa) the pre-project SAP rating; and

(bb) the impact the qualifying action would have on the SAP rating of the domestic premises; and

(ii) where the qualifying action is the installation of cavity wall insulation or loft insulation, which forms part of an ECO4 project which includes an item of work—

(aa) to which article 62(2) applies; and

(bb) which is the extraction of cavity wall insulation or loft insulation,

take into account any impact that work would have on the SAP rating of the domestic premises as compared to the pre-project SAP rating;

(b) the result of the initial determination referred to in sub-paragraph (a) must be reduced by 10 % in order to calculate the adjusted cost savings; and

(c) the annual cost savings must finally be determined in accordance with the following formula—

AKM + (IKM x F).

(3) In paragraph (2)(c)—

“AKM” is the adjusted cost savings calculated in accordance with paragraph (2)(b);

“IKM” is the initial determination of the annual cost savings referred to in paragraph (2)(a).

(4) Before publishing a methodology under this article, the Administrator must have regard to the Standard Assessment Procedure and the Reduced Data Standard Assessment Procedure.