Read the full outcome
Amending the ECO4 Order to allow
cost recovery via grant funding: government response
Detail of outcome
The government response sets out the government's final decision
on this consultation to amend the Energy Company Obligation
(ECO4) Order.
The Order will be amended to specify the government grants from
which ECO4
measures cannot receive money.
Detail of feedback received
We received 128 responses to the consultation from a variety of
stakeholders, including:
- energy suppliers
- installers
- trade bodies
- local authorities
- consumer stakeholders
The feedback is summarised in the government response.
Original consultation
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 ran from
10am on 8 December 2025 to 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
