Energy company warns firms will stop spending on Energy Companies Obligation until October unless they receive assurances from energy regulator

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Energy company Eon has warned there could be a hiatus in energy firms spending on the Energy Companies Obligation (ECO) until October unless they receive assurances from the energy regulator that the work will count towards them achieving the scheme’s targets.

The government’s consultation on changes to the ECO scheme, which closed last week, contains a number of proposals for changes to what energy efficiency measures will be eligible under the scheme.

However, the changes in the law required to bring them into effect are not due to come into effect until October, despite the fact that they would apply to work done from 1 April 2014.

Brian Tilley, head of energy policy at Eon, said: “The scheme starts in April and the rules are approved in October: this makes us nervous.

“As an energy supplier … we need the confidence to deliver measures between April and October. What we don’t want and what the supply chain doesn’t want is an investment hiatus, it’s unacceptable.”