| Please note: The Energy Company Obligation (ECO) is no longer being delivered. |
The Energy Company Obligation (ECO) was a government scheme administered by Ofgem that began in 2013 and had run in several phases. Its purpose was to improve energy efficiency in the homes of people in fuel poverty by requiring medium and large energy suppliers to fund upgrades such as insulation or heating improvements. These measures were designed to make homes cheaper to heat and reduce energy use. Since 2013, around 2.5 million homes in the UK have benefitted from ECO funding, with 4.6 million energy efficiency measures installed.
The ECO scheme completed four iterations: ECO, ECO1, ECO2, and ECO3. The latest iteration, ECO4, launched in 2022 and ran until 31st March 2026.
At the end of 2025, the government announced that the ECO scheme alongside the Great British Insulation Scheme (GBIS) would be closed. A short extension is provided until 31st December 2026 to support support remediation activity and to ensure an orderly and controlled closure of the scheme. However, there will be no extension to the Great British Insulation Scheme, no increase in delivery targets, and no carry-over arrangements beyond the revised end date.