Summary
We are seeking views on making a small change to the Energy
Company Obligation (ECO4) Order, to specify which government
grants cannot fund the scheme.
This consultation closes at
11:59pm on 5 January 2026
Consultation description
Obligated energy suppliers have spent more than was anticipated
in the impact assessment. To protect against a bill increase,
government plans to pay the suppliers through Exchequer funding.
The Energy Company Obligation (ECO4) legislation currently
states that measures cannot qualify against an energy suppliers'
obligation if they are grant-funded.
This consultation proposes amending the ECO4 legislation to specify
the government grants from which money is not to be received.
This would allow grants from public funds to be made by the
government specifically for the purposes of funding ECO4 measures (rather than
these other named schemes).
This consultation is open to all but of particular relevance to:
- energy suppliers
- energy efficiency and heating measure installers
- local authorities
- consumer groups
- academic groups
Read our consultation privacy
notice.
Documents
Consultation on amending the
ECO4 Order to allow cost recovery via grant funding
Ways to respond
Respond online
or
Email to:
ecoteam@energysecurity.gov.uk
Write to:
Energy Company Obligations Team
Department for Energy Security and Net Zero
3-8 Whitehall Place
London
SW1A 2EG
