PRACTICE NOTES
Energy Company Obligation ECO4 (Great Britain): legal framework, supplier duties, HHCRO delivery, Ofgem administration, ECO4A/Great British Insulation Scheme interactions, and 2025–2026 amendments including extension to 31 December 2026
What is the ECO?
The ECO is an energy‑efficiency programme obliging major energy suppliers to install efficiency measures across existing homes and other domestic premises. It mandates support and finance of about £1bn per annum (at 2022 prices). Its focus is on helping to fit energy‑saving upgrades in low‑income households and neighbourhoods, and in hard‑to‑treat properties. ECO superseded earlier initiatives aimed at cutting carbon and saving energy in homes—the Carbon Emissions Reduction Target and the Community Energy Saving Programme. It pursues four policy goals:
alleviating fuel poverty and supporting progress towards fuel poverty targets
cutting carbon emissions
lowering the cost of meeting the UK’s renewable energy target by promoting energy efficiency
stimulating innovation across the sector
ECO operates under secondary legislation: the Electricity and Gas (Energy Company Obligation) Order 2022, SI 2022/875 (the ECO 2022 Order). The ECO 2022 Order was amended in July 2025 by the Electricity and Gas (Energy Company Obligation) (Amendment, Saving and Transitional Provisions) Order 2025, SI 2025/802 in August 2025 by the Electricity and Gas (Energy...
Environment