Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Energy efficiency definition

What does Energy efficiency mean? Energy efficiency describes, in legal practice, achieving the same service or performance using less energy by cutting waste and improving the performance of buildings, plant and appliances (for example, better insulation, controls, heat recovery and higher‑efficiency equipment). The expression is descriptive rather than a single statutory definition, but legislation commonly refers to related concepts such as energy performance, energy savings and cost‑effective measures. It is a core issue in: - Real estate: Energy Performance Certificates (EPCs) and Minimum Energy Efficiency Standards (MEES) in England and Wales; Section 63 duties for certain non‑domestic premises in Scotland; EPC requirements in Northern Ireland;...

ECO3 (Energy Company Obligation) 2018–2022: legal framework, eligibility, thresholds, HHCRO and Ofgem compliance in Great Britain [Archived]

Published by a LexisNexis Environment expert

Practice notes

ARCHIVED: This Practice Note has been archived and is not maintained.

What is the ECO?

The ECO is an energy efficiency obligation requiring major energy suppliers to deliver improvements in existing domestic properties. It provides support and funding of around £640m each year (at 2017 prices). Working alongside the domestic green deal, it concentrates on installing energy efficiency measures in low income households and areas, as well as homes that are harder to treat. The ECO superseded earlier domestic schemes aimed at cutting carbon and achieving energy savings—the Carbon Emissions Reduction Target and the Community Energy Saving Programme.

Relieving fuel poverty and contributing to fuel poverty targets
Lowering carbon emissions
Reducing the cost of meeting the UK’s renewable energy target by promoting energy efficiency
Encouraging innovation within the industry

The legislative basis for the ECO comes from Chapter 4 of the Energy Act 2011, which empowers the Secretary of State to set targets for reductions in carbon emissions and home heating costs for energy suppliers via secondary...

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Web page updated on 21/05/2026

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