ECO Funding

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 ECO scheme is set out in the Electricity and Gas (Energy Company Obligation) Order 2014 (ECO2 Order)1. Information on our role as the administrator of the ECO scheme can be found on our website.

What are the different obligations under ECO?

As of 1 April 2017, ECO will consist of two separate obligations:

The Carbon Emissions Reduction Obligation (CERO)

Suppliers are obliged to reduce carbon emissions by promoting the installation of wall and roof insulation and connections to district heating systems.

Other insulation measures can also be installed, as long as they meet certain conditions.

At least 15% of the target must be achieved in rural areas.

The Home Heating Cost Reduction Obligation (HHCRO).

For the HHCRO, suppliers must deliver energy efficiency measures that reduce home heating costs for low income, fuel poor and vulnerable people. HHCRO measures can be delivered to:

Private domestic premises occupied by someone in receipt of specific benefits (the help to heat group).

Private domestic premises where they are referred to ECO through a local authority declaration, and social housing where the premises has an EPC energy efficiency rating of E, F or G. Only insulation and first time central heating measures can be delivered to these premises.

A third obligation, the Carbon Saving Community Obligation (CSCO), ran from January 2013 to 31 March 2017, but is now closed.