What does ECO mean?

The ECO scheme works by placing a Home Heating Cost Reduction Obligation (HHCRO) on medium and large energy suppliers.

It is a policy that aims to make homes warmer and households’ emissions lower, as well as making large energy companies accountable for supporting income-restricted households. In other words, ECO is all about energy saving while offering hardship grants for single mothers,fathers, people with disabilities and families who struggle financially in general.

ECO particularly aims to help vulnerable homes and property holders while being delivered through local authority referrals and companies like UK Energy Support who work closely with Ofgem and energy suppliers to fulfil the Energy Company Obligation.

It is also subject to primary legislation industrial strategy and uses a whole house approach to lower fuel poverty via improved heating systems. The primary legislation listing minimum energy efficiency requirements was originally launched in 2013 and has helped over 2.3 million homes. The previous phase of ECO3 scheme version was replaced by the ECO 4 in April 2022.

You can familiarise yourself with ECO4 final stage impact assessment on the government website. The document includes changes, scoring methodology and minimum requirements to allow local authority referrals (through LA Flex – Flexible Eligibility) and private energy efficiency installers to implement the final phase of the ECO consultation.