Energy Company Obligation ECO4: 2022 -2026

Overview

This consultation sets out our proposed changes to the Energy Company Obligation (ECO) scheme for the next scheme (ECO4), due to begin in April 2022.

Read the consultation document on GOV.UK.

Why we are consulting

We’re seeking views on the future design of the Energy Company Obligation (ECO) scheme. This includes:

• Continuing to target low income and vulnerable, and fuel poor households;
• Greater support and deeper retrofit for the least energy efficient homes, requiring homes to meet new minimum energy efficiency requirements;
• The proportion of the scheme that can be delivered through local authority referrals, and by suppliers, under a reformed Local Authority & Supplier Flexible Eligibility route.
• Supporting innovation under ECO
• How ECO interacts with other grant funding
• Views on a future supplier buy-out mechanism to enable small suppliers to participate in ECO, subject to primary legislation

The consultation is published alongside a draft impact assessment, and ECO evaluation reports. 

This document will be relevant to energy suppliers, energy efficiency installers, energy efficiency measure manufacturers and associated software developers, local authorities, consumer groups, academic groups, as well as others.