Changes to ECO and RO in the energy price cap from April 2026
- Publication type:
- Transparency document
- Publication date:
- Topic:
- Energy pricing rules
- Subtopic:
- Energy price cap
How we will apply the government’s Budget changes to the Energy Company Obligation and the Renewables Obligation.
This update explains how the energy price cap will reflect the UK Budget 2025 measures from 1 April 2026. We propose to:
- set the ECO and GBIS allowance to zero
- apply a 75% reduction to the existing RO allowance to reflect government funding for domestic households
We will consider any further government information ahead of the 25 February 2026 energy price cap announcement.