The Electricity and Gas (Energy Company Obligation) Order 2023

Publication of annual cost savings methodology

32.—(1) Before the end of the 6 week period beginning with the commencement date, the Administrator must publish, on its website, a methodology for the purpose of determining the annual cost savings of an ECO4A qualifying action.

(2) Under the methodology published by the Administrator—

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

(i) the pre-installation SAP rating of the domestic premises at which the ECO4A qualifying action is installed; and

(ii) the impact the ECO4A qualifying action would have on the SAP rating of the domestic premises;

(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—

.

(3) In paragraph (2)(c)—

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

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

(c) “F” is—

(i) 0.2, where the floor area of the domestic premises is less than 73m²;

(ii) 0.1, where the floor area of the domestic premises is between 73m² and 97m² (both inclusive); and

(iii) 0, where the floor area of the domestic premises is greater than 97m².

(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.

(5) On or before 30th June 2026, the Administrator may revise any methodology published under this article by publishing the revised methodology on its website.

(6) In this article—

“floor area” has the same meaning as in the Standard Assessment Procedure;

“pre-installation SAP rating” means the SAP rating which is determined for the domestic premises pursuant to a pre-installation energy efficiency assessment.