The Energy Company Obligation (ECO) is a government energy efficiency scheme in Great Britain to help reduce carbon emissions and tackle fuel poverty.
The scheme began in April 2013, and over time it has been amended. The latest changes to the scheme occurred in March 2022 with the launch of “ECO 4”.
ECO energy efficiency measures contribute to the target and commitment agreed by the UK government in line with the International climate change agreements of Kyoto (1997) and Paris (2016).
Regulated by OFGEM (The Office of Gas & Electricity Markets) Energy Suppliers collect funds from consumers on via their energy bill. Energy suppliers are then targeted to use the money collected to meet their obligation based on their percentage of market share.
Home Heating Cost Reduction Obligation (HHCRO) Under HHCRO, obligated suppliers must promote measures which improve the ability of low income and vulnerable household to heat their homes. This includes actions that result in heating savings, such as the replacement or repair of a boiler.
HHCRO funding applies if you are either in receipt of particular benefits or credits or you have been accepted via a Local Authority Flexible Eligibility application (where your Local Authority signs off to confirm you meet their own criteria to qualify for HHCRO funding). HHCRO also includes: Loft Insulation, Cavity Wall Insulation, External Wall Insulation, Internal Wall Insulation, Boiler Replacement, Electric Storage Heater replacement
Customers in receipt of: Income-related Employment and Support Allowance, Income-based Jobseeker’s Allowance, Income Support, Pension Guarantee Credit, Tax credits
Or: Customers who have successfully applied for Local Authority Flexibility.