Energy Company Obligation (ECO)

The Energy Company Obligation (ECO) is a government scheme to obligate larger suppliers to deliver energy efficiency measures to domestic premises in Britain.

Obligation periods

The new obligation period, known as ECO2, launched on 1 April 2015. It will run for the next two years to 31 March 2017.  It extends the original lifetime of the scheme which ended on 31 March 2015.

ECO targets

Suppliers are allocated a proportion of the overall ECO targets, depending on their relative share of the domestic gas and electricity market. Suppliers achieve their obligations by delivering energy efficiency measures at domestic premises. ECO has three obligations:

  1. Carbon Emissions Reduction Obligation
    Under the Carbon Emissions Reduction Obligation, obligated suppliers must promote ‘primary measures’, including roof and wall insulation and connections to district heating systems. Other ‘secondary measures’, which improve the insulating properties of a premises can also be installed at the same premises as primary measures.
     
  2. Carbon Saving Community Obligation
    Under the Carbon Saving Community Obligation, obligated suppliers must promote insulation measures and connections to district heating systems in areas of low income. The CSCO target has a sub-obligation, which requires that at least 15% of a supplier’s CSCO must be achieved by promoting measures to low income and vulnerable households in rural areas or deprived rural areas.
     
  3. Home Heating Cost Reduction Obligation
    Under the Home Heating Cost Reduction Obligation, obligated suppliers must promote 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.

Before ECO

ECO replaces two previous schemes, the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP). You can find out more about them in our section on previous energy efficiency schemes.

Publications and updates

  • Published: 31st Mar 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: 2nd Mar 2015
  • Decisions
  • 3 Associated documents
We have now published a document which summarises the responses we received from stakeholders on the Energy Company Obligation 2015-2017 (ECO2): ECO2.2 Consultation.

  • Published: 14th Jan 2015
  • Consultations & responses
  • 2 Associated documents
Response to our consultation on specific HHCRO requirements

  • Published: 4th Dec 2014
  • Closed: 21st Jan 2015
  • Consultations & responses
  • 36 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 publication is for ECO1 reference only and applies to measures installed on or before 31 March 2015.

  • 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.

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