Domestic energy tariff reductions 2026: guidance for energy suppliers

Domestic energy tariff reductions 2026: guidance for energy suppliers

Guidance for energy suppliers on how to apply discounts to domestic tariffs from 1 April 2026, related to the RO to Exchequer scheme and closure of the ECO and GBIS schemes.

From:

Department for Energy Security and Net Zero

Published 18 March 2026 

Last updated 2 July 2026  See all updates

Documents

RO to Exchequer and ECO costs schemes: guidance for suppliers (PDF)

PDF, 441 KB, 34 pages

RO to Exchequer and ECO costs schemes: guidance for suppliers (HTML)

HTML

Details

In the 2025 Autumn Budget the government announced that it will take an average of £150 off the cost of household energy bills.

This guidance explains how domestic energy suppliers should implement the cost reduction, through policy changes which include:

• the introduction of the Renewables Obligation (RO) to Exchequer Scheme
• the ending of funding for the Energy Company Obligation (ECO4) Scheme and Great British Insulation Scheme (GBIS)

Ministerial direction

See the related Domestic energy tariff reductions 2026: ministerial direction.