Energy Company Obligation Statements of Intent

1. Questions to the First Minister – in the Senedd on 8 November 2022.

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Photo of Sam Rowlands Sam Rowlands Conservative

(Translated)

3. What steps is the Welsh Government taking to encourage Welsh local authorities to publish energy company obligation—ECO4—statements of intent? OQ58654

Photo of Lesley Griffiths Lesley Griffiths Labour 1:51, 8 November 2022

The Welsh Government is supporting the development of a Wales-wide energy company obligation flex statement of intent for use by local authorities. This single statement encourages more local authorities to take advantage of the scheme. The Minister for Climate Change will make a wider statement on company energy efficiency in Welsh homes later this afternoon. [Interruption.]

Photo of Elin Jones Elin Jones Plaid Cymru 1:52, 8 November 2022

I can't hear what the Minister is saying. 

Photo of Sam Rowlands Sam Rowlands Conservative

I think I heard enough, Llywydd, to ask my follow-up question, if you don't mind. Thank you very much. 

Photo of Elin Jones Elin Jones Plaid Cymru

Yes. If you heard, that's fine.

Photo of Sam Rowlands Sam Rowlands Conservative

Thank you, and thank you, Trefnydd, for your response on that question. A couple of weeks ago, I had the pleasure of visiting the Blue Turtle Group, who are based in the queen of resorts, in Llandudno, and Blue Turtle are a company who process the applications for the ECO4 scheme. As you'll be aware, Trefnydd, it's a UK-wide scheme, an initiative that requires energy companies to fund grants from their profits to improve the energy efficiency of people's homes, the main objective being looking to improve the energy efficiency of those who are on the lowest income, and perhaps who are vulnerable. It's worth £1 billion a year and it's expected to upgrade 450,000 homes across the UK, and I think Wales should be doing its utmost to get the most of that £1 billion and to see an upgrade to as many homes here in Wales as possible, because it's such an important time in terms of both the cost of living and the climate emergency. 

So, in light of this, how is the Welsh Government looking to ensure that this scheme is maximised for Wales, and what support is the Welsh Government giving to local authorities to ensure that those applications for this funding are processed as easily and as quickly as possible?

Photo of Lesley Griffiths Lesley Griffiths Labour 1:53, 8 November 2022

Thank you. Working with our partners, Welsh Government explored the ECO flex process to develop an optional Wales-wide statement of intent, so as to make it as easy and as attractive as possible for local authorities to engage with this scheme. I know that officials are continuing to work with the Welsh Local Government Association, local authorities and also the Cardiff capital region so that an approach can be developed that maximises the participation of our local authorities, makes it attractive for energy suppliers, and overcomes those barriers to engagement that we all know are often there in any new scheme. Proposals will soon be submitted to the Minister for Climate Change for her to formally consider.

I think what that collaborative approach really does is to support the recommendations that were made by the Senedd's Climate Change, Environment and Rural Affairs Committee when they had their inquiry—I think it was back in 2020—into fuel poverty, and they came forward with recommendations. What they really wanted to see was closer working with the ECO.