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4th ENSPOL Policy Brief: Cost Recovery Mechanisms of EEO Schemes

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Vlasios Oikonomou
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The cost recovery mechanisms and options of energy efficiency obligation (EEO) schemes are determining factors for the public acceptance and efficiency of such schemes. Many cost recovery options exist, with different options applying to different circumstances. According to this brief, the parameters that influence the decision about which scheme to employ (which has to be flexible and easy to adapt in case market standards change over the time) are obligated party (suppliers and/or distributors), obligation on all or selected energy carriers, openness of the market (expressed in number of companies) and expectations for newcomers, links of the EEO scheme to either funding mechanism (such as a certificate market) or other tools (such as subsidies, tenders and others), and availability of low-cost energy saving options.