Energy Company Obligation ECO4
The Energy Company Obligation (ECO) is an obligation on larger energy suppliers to deliver energy efficiency measure to domestic properties.
ECO4 is the latest version of the scheme. It focuses on low income and vulnerable households. Improving the least energy efficient homes. This helps to meet the Government’s fuel poverty and net zero commitments.
The scheme will end on 31 March 2026.
ECO4 is comprised entirely of a single obligation. This is known as the Home Heating Cost Reduction Obligation (HHCRO). This obligation aims to reduce home heating costs for low-income, fuel poor and vulnerable people. It is designed as a fabric first multiple measure policy with the aim of encouraging the installation of:
- district heating connections,
- as well as upgrading inefficient heating systems.
It incorporates the replacement of broken heating systems and the upgrade of inefficient heating systems.
Compared to previous ECO schemes, ECO4 focusses on improving the least energy efficient homes. Only properties in band D to G can be treated. It requires a more complete upgrade of those homes, shifting to a multi-measure whole-house retrofit approach.
A minimum number of private tenure homes in energy efficiency rating band E, F and G must be upgraded throughout ECO4, ensuring the least efficient homes are treated.
There is a new Minimum Requirement (MR) to improve the energy efficiency rating of the least energy efficient homes:
- Band D and E homes improved to at least a band C
- Band F and G homes improved to at least a band D.
This approach increases the number of measures installed per home and the savings for the household. It reduces the need for future upgrades to those properties.
'Eco Flex' scheme
ECO4 allows a local authority to introduce an 'Eco Flex' scheme. The 'Eco Flex' scheme specifies a broader definition of a qualifying fuel poor household. At the moment, the Isle of Wight Council does not have an Eco Flex scheme.
How to qualify for the ECO4 scheme
Householders who receive specific benefits or are in receipt of Child Benefit and are below the equivalised income threshold for the household composition can qualify for ECO4.
List of eligible benefits under ECO4:
- Income based Jobseekers Allowance (JSA)
- Income related Employment and Support Allowance (ESA)
- Income Support (IS)
- Pension Credit Guarantee Credit (PCGC)
- Working Tax Credit (WTC)
- Child Tax Credit (CTC)
- Universal Credit (UC)
- Housing Benefit
- Pension Credit Savings Credit (PCSC)
- Child Benefit
How to access ECO4 scheme
To access ECO4 scheme, you will need to contact your energy supplier and ask if they have a scheme running in the area.
You can also contact one of the companies approved by the council under its ECO Code of Conduct: