Energy Company Obligation (ECO)

Support for improving your home

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

How ECO works

Under ECO, medium and larger energy suppliers fund the installation of energy efficiency measures in British households.

Each obligated supplier has an overall target based on its share of the domestic energy market in Britain.

The obligated energy suppliers work with installers to introduce certain efficiency measures into your home, such as loft or wall insulation, or heating measures.

The ECO4 scheme consists of one distinct obligation: the Home Heating Cost Reduction Obligation (HHCRO).

The obligation explained

The Home Heating Cost Reduction Obligation requires energy suppliers to promote the installation of measures that lead to financial savings on energy bills, such as the installation of insulation and heating measures.

You are eligible for ECO if you are a core group customer from scheme year 12 onwards under the Warm Home Discount Scheme or you receive at least one of the following benefits and satisfy the relevant income requirements, where applicable:

  • Child Benefit
  • Pension Guarantee Credit
  • Income-related Employment and Support Allowance (ESA)
  • Income-based Jobseeker's Allowance (JSA)
  • Income Support
  • Tax Credits (Child Tax Credits and Working Tax Credits)
  • Universal Credit
  • Housing benefit
  • Pension credit saving credit

Local authorities are also able to refer residents in their areas to obligated energy suppliers so that they can be offered support under the scheme.

Energy suppliers themselves are also able to refer households where they are either struggling with persistent fuel debt and are supported by suppliers, or are using pre-payment meters (PPM) and have regularly been unable to stay connected to their fuel supplies due to financial hardship.

Can I benefit from ECO?

In order to benefit from ECO you must own your own home or have the permission of your landlord, including if your property is owned by a social housing provider or management company.

If you live in England or Wales and would like advice on energy efficiency, including energy saving schemes such as ECO, which you may be able to benefit from, the Simple Energy Advice website offers impartial energy efficiency advice. If you live in Scotland, you should contact Home Energy Scotland on 0808 808 2282 or complete their contact form.

You can also contact any of the obligated suppliers to find out how they may be able to help you. You can benefit from ECO regardless of who you purchase your energy from. You don’t need to buy energy from an obligated supplier in order to benefit.

It is important to note that eligibility for ECO does not necessarily mean that an energy supplier or installer will decide to install an energy efficiency measure in your home.

TrustMark - Government endorsed quality

You may be contacted directly by an installer claiming to be working under the ECO scheme. If the company claims to be an installer, always ask to see the following credentials: for almost all measures (except for connections to District Heating Systems) installers under ECO must be TrustMark accredited and will have a registration number.

FAQs for domestic consumers and landlords

Answers to some common questions about the Energy Company Obligation (ECO3) scheme.

Visit our FAQs section here

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