New requirements for insulation guarantees under ECO3

Neil Marshall from Neil Marshall Consultancy Services
Neil Marshall from Neil Marshall Consultancy Services

Last year the Department for Business, Energy and Industrial Strategy (BEIS) and Ofgem consulted and announced decisions on changes to the ECO3 legislation to improve consumer protection. These changes came into force on January 1, 2020 and will apply to ECO3, which runs until March 2022.

What are the changes?

  • All insulation installation businesses that are installing ECO3 measures must be registered with Trustmark from January 1, 2020
  • The requirements for insulation measures from January 1, 2020 are that:

o   All existing Ofgem requirements for appropriate guarantees remain in place and continue as a requirement of the ECO order

o   All work undertaken under ECO3 where an appropriate guarantee is not required must be protected within the requirement of the TrustMark Framework Operating Requirement

o   Cavity wall insulation, external wall insulation, internal wall insulation and park homes insulation continue to require a 25-year guarantee

o   Room in roof insulation and underfloor insulation will require a 25-year appropriate guarantee to be issued for the first time. To enable energy companies, guarantee providers and installers to gear up and transition for this new requirement, it will not become a mandatory requirement until July 1, 2020.

Who can provide the guarantees?

There are a number of guarantee providers who can provide guarantee cover to installers including:

GDGC – provide insurance backed guarantees for a wide range of ECO measures and home improvement products and can provide a one stop guarantee service to installers. New appropriate guarantees for room in roof insulation and underfloor insulation are currently being processed through the TrustMark Finance Panel in line with the requirement stated above.

Warranty Services (Kinnell ECO) – provide guarantees for cavity wall insulation and external wall insulation only.

Solid Wall Insulation Guarantee Agency (SWIGA) – provide guarantees for external wall insulation only.

Cavity Insulation Guarantee Agency (CIGA) provide guarantees for cavity wall insulation and loft insulation only.

Who do I contact with any queries?

If you have a question regarding the ECO order, you should contact Ofgem, Enquiries about TrustMark registration, or the Data Warehouse should be directed to TrustMark via email or telephone. If you have queries regarding the provision or delivery of appropriate guarantees or financial protection, then these should be addressed to the protection providers.

If you have any queries in relation to what is mentioned above or require additional independent advice and guidance on this or any other ECO3 matters, email neil@neilmarshall.co.