ENERGY COMPANY OBLIGATION (EC04)

  • The Energy Company Obligation (ECO4) is a UK government policy that requires large energy suppliers to fund energy efficiency improvements in eligible homes.

    It is not a grant paid directly to households.
    Funding is delivered through obligated energy suppliers working with approved delivery partners.

    ECO4 has been one of the main national mechanisms used to improve energy efficiency in lower-income and harder-to-heat homes.

    Official overview:
    https://www.gov.uk/energy-company-obligation

  • It is expected to close on March 31st 2026 as government energy policy evolves.
    While delivery continues in some areas, availability is reducing as the scheme approaches the end of its current phase.

    NUVOE includes ECO4 to explain how recent national energy efficiency funding has worked and how successor schemes are typically structured.

    On Thursday 23 January 2025 the Department for Energy Security and Net Zero issued a statement about potential issues with ECO and GBIS installations.

  • ECO4 has typically supported measures such as:

    • Loft insulation

    • Cavity wall insulation

    • Solid wall insulation

    • Heating system upgrades in specific circumstances

    • Associated energy efficiency improvements required to meet scheme standards

    The exact measures available depend on household eligibility, property suitability, and delivery rules.

    Official guidance on measures:
    https://www.ofgem.gov.uk/environmental-and-social-schemes/energy-company-obligation-eco

  • Households have typically been eligible for ECO4 only if they meet a qualifying household route and the property is suitable for improvement.

    This has usually meant one of the following applies:

    • Someone in the household receives specific means-tested benefits

    • The household qualifies under a local authority referral route (LA Flex), which may include vulnerability related to health, disability, or low income

    In all cases, the property must also meet scheme requirements relating to energy performance and suitability.

    A low energy performance rating alone has not been sufficient to qualify.

    Official eligibility guidance:
    https://www.gov.uk/energy-company-obligation#who-can-get-help

  • Although ECO4 is a national scheme, households do not apply directly through the government.

    Delivery has usually taken place through:

    • Approved installers working on behalf of energy suppliers

    • Local authority referral pathways

    • Supplier-led delivery programmes

    The delivery route depends on location, household circumstances, and current funding availability.

  • Contact your local council to find out if they’re taking part in the Energy Company Obligation scheme, or contact an energy supplier directly.

    You can find contact details of suppliers who are taking part in the scheme on the Ofgem website.

    NUVOE does not process applications.
    Our role is to explain how the scheme works so households can approach the correct official route with clarity.

  • For authoritative and up-to-date information, refer to:

    NUVOE explains how energy support schemes work in practice.
    Official sources provide regulatory and policy detail.