Energy Companies Obligation (ECO)

The Energy Companies Obligation (ECO) is an energy efficiency programme that was introduced into Great Britain at the beginning of 2013. It replaces two previous schemes, the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP).

ECO places legal obligations on the larger energy suppliers to deliver energy efficiency measures to domestic energy users. It operates alongside the Green Deal which is designed to help people make energy efficiency improvements to buildings by allowing them to pay the costs through their energy bills rather than upfront.

ECO is intended to  work alongside the Green Deal to provide additional support in the domestic sector, with a particular focus on vulnerable consumer groups and hard-to-treat homes.

ECO targets

Under the rules of ECO, energy suppliers are obliged to help improve the energy efficiency of their domestic customers’ buildings in three distinct areas:

  1. Carbon Emissions Reduction Obligation
    Under the Carbon Emissions Reduction Obligation, energy companies must concentrate efforts on hard-to-treat homes and measures that cannot be fully funded through the Green Deal. Solid wall insulation and hard-to-treat cavity wall insulation are the primary areas for focus under this target. Other insulation measures and connections to district heating systems are also eligible if they are promoted as part of a package that includes solid wall insulation or hard-to-treat cavity wall insulation.
     
  2. Community Obligation
    Under the Carbon Saving Community Obligation,  energy companies must focus on the provision of insulation measures and connections to domestic district heating systems supplying areas of low income. This target has a sub-target, which states that at least 15 per cent of each supplier’s Carbon Saving Community Obligation must be achieved by promoting measures to low income and vulnerable households living in rural areas.
     
  3. Home Heating Cost Reduction Obligation
    Under the Home Heating Cost Reduction Obligation, energy suppliers are required to provide measures which improve the ability of low income and vulnerable households (the ‘Affordable Warmth Group’) to heat their homes. This includes actions that result in heating savings, such as the replacement or repair of a boiler for example.

Publications and updates

  • Published: 16th Jan 2015
  • News
  • 0 Associated documents
Please be advised that the ECO Register will be unavailable on the dates indicated in this publication due to essential maintenance.

  • Published: 4th Dec 2014
  • Closed: 21st Jan 2015
  • Consultations & responses
  • 1 Associated documents
Consultation on how we propose to administer some of the changes to Energy Company Obligation (ECO) for the next obligation period (1 April 2015 to 31 March 2017), in line with the ECO Order 2014 .

  • Published: 20th Nov 2014
  • Guidance
  • 1 Associated documents
This document aims to assist suppliers and the supply chain in evidencing Affordable Warmth Group (AWG) eligibility. It supports the existing ECO Guidance for Suppliers.

  • Published: 19th Nov 2014
  • Guidance
  • 0 Associated documents
An online tool to help energy companies, the wider supply chain and consumers to identify areas that may be eligible for the installation of energy efficiency measures under the Carbon Savings Community Obligation element of the Energy Companies...

  • Published: 6th Nov 2014
  • Consultations & responses
  • 2 Associated documents
This document summarises the responses we received from stakeholders on the Energy Companies Obligation (ECO): Consultation on revisions to the guidance for suppliers, explains the changes we have made to the final guidance and sets out how we have taken...

  • Published: 17th Oct 2014
  • News
  • 0 Associated documents
This update explains the proposed changes the government has made for the Energy Companies Obligation and our planned guidance revisions to incorporate these.

  • Published: 17th Oct 2014
  • Closed: 1st Dec 2014
  • Consultations & responses
  • 21 Associated documents
This consultation is seeking views on the proposed changes to the Home Heating Cost Reduction Obligation (HHCRO), and is part of a broader consultation period for our ECO2 Guidance for Suppliers.

  • Published: 11th Aug 2014
  • Closed: 22nd Sep 2014
  • Consultations & responses, Guidance
  • 30 Associated documents
Consultation on how we propose to administer the Energy Companies Obligation (ECO) in line with the amended ECO Order 2014 and our proposed revisions to guidance for suppliers.

  • Published: 16th Apr 2014
  • Open letters & correspondence
  • 1 Associated documents
Ofgem’s further response to the government’s consultation: The Future of the Energy Company Obligation

  • Published: 11th Mar 2014
  • Consultations & responses
  • 1 Associated documents
This letter is our response to sections of DECC’s consultation:

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