WHD and ECO thresholds now cover 98% of market
1 April 2020 will see the government’s Warm Home Discount (WHD) and Energy Company Obligation (ECO) scheme thresholds drop from 200,000 to 150,000. This will require all suppliers with more than 150,000 domestic customer accounts to be mandatory participants in these schemes.
In this week’s Chart of the Week, we look at how the changing thresholds provide support to more of the market and what more needs to be done to make sure those that aren’t covered can access appropriate support.
In June 2018, the government considered that changing the then current thresholds from 250,000 to 200,000 would bring the market coverage from ~94% to 97%. According to our Domestic Market Share Surveys, the move to 200,000 accounts in April 2019 saw the market coverage grow to 95%. Also, according to October 2019 data, we would expect this to increase a further 2% with the falling thresholds to 98% as of April 2020 (Figure 1).
Suppliers can be voluntary ECO or WHD participants, which Figure 1 does not take into account. This aside, ~2% of customer accounts cannot receive a benefit they may be eligible for because their supplier has not passed the threshold.
It is worth noting that customer accounts are measured separately for electricity and gas and, therefore, the 2% could be anywhere between ~500,000 and 1mn domestic customers and not all of these customers will be eligible for the benefits that ECO and WHD offer.
Regardless, it is clear to see that the changing thresholds have given a greater number of customers access to important benefits, whether that be £140 credit under the WHD or energy efficiency measures under ECO.
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