Energy Company Obligation (ECO)

About ECO

The Energy Company Obligation (ECO) is a government energy efficiency scheme in Great Britain to help reduce carbon emissions and tackle fuel poverty.

The scheme began in April 2013, and over time it has been amended. The latest policy, ECO3, commenced on 3 December 2018, and applies to measures completed from 1 October 2018.

You can see a summary of the changes made to the scheme in 2018 on the Department for Business, Energy and Industrial Strategy’s website

You can also read more about the previous versions of ECO on our Overview of previous schemes page

What are the main obligations?

This ECO policy will be entirely formed from one obligation, the Home Heating Cost Reduction Obligation (HHCRO). Under HHCRO, obligated suppliers must mainly promote measures which improve the ability of low income, fuel poor and vulnerable households to heat their homes. This includes actions that result in heating savings, such as the replacement of a broken heating system or the upgrade of an inefficient heating system.

Under ECO2t, which ran from 1 April 2017 to 30 September 2018, suppliers were also required to deliver against an additional obligation called the Carbon Emissions Reduction Obligation (CERO).

Find out more in the support for improving your home section of our website.

Progress towards meeting obligations

We publish monthly reports which give an overview of energy suppliers’ progress towards meeting their targets. The first monthly report for ECO3 will be published in early 2019.

Our role in ECO

Ofgem administers the scheme on behalf of the Department for Energy, Business & Industrial Strategy. Our duties include:

  • allocating a proportion of targets to obligated suppliers
  • monitoring supplier progress and deciding whether they’ve achieved their obligations
  • reporting to the Secretary of State
  • auditing, ensuring compliance and preventing and detecting fraud.

BEIS sets the overall policy for the scheme. 

Contacting the ECO team

Still got a question? Contact the ECO team, who’ll be happy to help.

How we engage

We believe that engaging with stakeholders when designing and delivering schemes brings real benefits and our forums are intended to gather contributions from a range of stakeholders on the main operational and delivery issues in ECO.

Click the button below to find out more about ECO forums and working groups. 

Find out more