The Electricity and Gas (Energy Company Obligation) Order 2018

Publication of a cost savings methodology

33.—(1) The Administrator must publish, on its website, a methodology for the purpose of calculating the cost savings of a qualifying action under article 32.

(2) Under the methodology published by the Administrator the calculation of the cost savings must be based on—

(a) in the case of a qualifying action which is the repair of a boiler or electric storage heater and which is accompanied by—

(i) a warranty for less than 2 years, an expected lifetime for the qualifying action of 1 year;

(ii) a warranty for 2 years or more, an expected lifetime for the qualifying action of 2 years;

(b) in the case of a qualifying action which is the replacement of a broken boiler with another boiler, an expected lifetime for the qualifying action of 3 years;

(c) in the case of a qualifying action which is the replacement of a broken electric storage heater with another electric storage heater, an expected lifetime for the qualifying action of 5 years;

(d) in the case of a qualifying action which is the installation of cavity wall insulation and which is accompanied by an appropriate warranty, an expected lifetime for the qualifying action of 42 years;

(e) in the case of a qualifying action which is the installation of insulation applied to the floor, walls and ceiling of a mobile home and which is accompanied by an appropriate warranty, an expected lifetime for the qualifying action of 30 years;

(f) in the case of a qualifying action which is the installation of solid wall insulation and which is accompanied by an appropriate warranty, an expected lifetime for the qualifying action of 36 years; and

(g) in the case of any other qualifying action, an expected lifetime for the qualifying action that is specified in, or determined in accordance with, the methodology.

(3) Before publishing a methodology under this article, the Administrator must have regard to—

(a) the Standard Assessment Procedure and the Reduced Data Standard Assessment Procedure, or to any methodology published by, or on behalf of, the Secretary of State as a replacement for the Standard Assessment Procedure or the Reduced Data Standard Assessment Procedure; and

(b) the desirability of the methodology being easy to use.

(4) In this article—

“appropriate warranty” means a warranty which the Administrator is satisfied—

(a)

is supported by a mechanism that gives assurance that—

(i)

funds will be available to honour the warranty; and

(ii)

the installation of the insulation and products used in the insulation comply with a quality assurance framework;

(b)

is for 25 years or more; and

(c)

provides for repair, or replacement where appropriate, of the insulation, covering the cost of remedial and replacement works and materials;

“broken boiler” and “broken electric storage heater” have the same meaning as in article 32.