ECO4 Fraud and Error Assurance

The Department for Energy Security and Net Zero (DESNZ) are looking to conduct a fraud and error assurance exercise related to the Energy Company Obligation (ECO4) scheme. DESNZ is aware of the potential for non-compliance within the ECO4 scheme, including:

• The misrepresentation of property eligibility characteristics in the ECO4 scheme, indicating the need for greater control of error and fraud.
• Potential for discrepancies within Energy Performance Reports (EPRs), particularly relating to building characteristics for instance in ceiling heights, default U values (rate of transfer of heat through a wall) and boiler models.
• Possible gaps in household eligibility checks which are required to ensure all households receiving ECO4 support meet the eligibility requirements.

The scope of the exercise is to examine and understand exposure to and causes for this, and other types of error and fraud, on the ECO4 scheme. The overall aim of the exercise is to improve the scheme delivery process, ensure targeted support is going to those most in need, and ensure ECO4 is providing value for money for energy bill payers. Outputs of the exercise will include a report detailing the thematic areas of fraud and error, and providing recommendations that are addressed to the Authority, but relevant to all elements of the supply chain and to delivery stakeholders.

Core Capabilities In the attached document, Annex A, there is a more detailed list of the requirements of this potential opportunity and the associated capabilities, which can be summarised as:

• Data analysis
• Investigation
• Process review and business analysis
• Fraud Risk Assessment
• Hypothesis testing
• Site audits
• Analysis and reporting
• Policy analysis and design This fraud and error assurance exercise will cover the geographical remit of the ECO4 scheme - England, Wales and Scotland.

The Authority invites organisations with the capability and capacity to undertake these requirements to express their interest and complete the attached Market Engagement Questionnaire, to help inform the development of this potential procurement. Please provide responses by Friday 25/10/2024 (17:00).

https://forms.office.com/e/Zh0QqKJd5a?origin=lprLink

Feedback from suppliers via this early engagement will help inform our thinking and shape the Authority's commercial strategy. Any further market engagement will be communicated in due course. This market engagement notice is separate to any later procurement exercise. The Authority will not use this to inform the suitability of any future potential supplier.

Please see attachments for more detail on the background, requirements, and core capabilities of this potential opportunity.