ECO4 Guidance: Local Authority Administration


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The Energy Company Obligation (ECO), is a government energy efficiency scheme for Great Britain, administered by Ofgem.

The ECO1 scheme ran between 1 January 2013 and 31 March 2015.

The ECO2 scheme then ran from 1 April 2015 to 31 March 2017. This scheme was then extended and ran from 1 April 2017 to 30 September 2018 and was referred to as ECO2t. The ‘LA Flex’ component of the scheme was introduced as part of the changes to the scheme in April 2017.
The ECO3 scheme ran from 3 December 2018 to 31 March 2022. ECO4 is the new scheme that will replace it.

ECO4 will be a four-year scheme and is intended to run from 1 April 2022 to 31 March 2026.

The main objective of ECO4 is to improve the least energy efficient housing stock occupied by low income and vulnerable households. One route that can be used to identify these households is ‘ECO4 Flexibility’ (ECO4 Flex). Under ECO4 Flex, a participating Local Authority (LA), can refer private tenure households that it considers to be living in fuel poverty or on a low income and vulnerable to the effects of living in a cold home.

This guidance sets out opportunities for LAs and Devolved Administrations (DAs), to engage with energy suppliers on how suppliers meet their obligations to install energy efficiency measures in homes under ECO. This guidance document also outlines the requirements that are expected of LAs when referring eligible households for the scheme, and it provides information on our oversight and administration process.