What is ECO?

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

The scheme began in April 2013, and over time it has been amended. The latest policy, ECO3, commenced on 3 December 2018, and applies to measures completed from 1 October 2018.

What are the main obligations?

This ECO policy will be entirely formed from one obligation, the Home Heating Cost Reduction Obligation (HHCRO). Under HHCRO, obligated suppliers must mainly promote measures which improve the ability of low income, fuel poor and vulnerable households to heat their homes. This includes actions that result in heating savings, such as the replacement of a broken heating system or the upgrade of an inefficient heating system.

Under ECO2t, which ran from 1 April 2017 to 30 September 2018, suppliers were also required to deliver against an additional obligation called the Carbon Emissions Reduction Obligation (CERO).

The government’s response to the Energy Company Obligation (ECO3) consultation sets out the policy of the scheme that will run from Autumn 2018 until March 2022. The scheme delivers energy efficiency and heating measures to homes in Great Britain.