The Energy Companies Obligation (ECO) is a domestic energy efficiency programme to provide added support for packages of energy efficiency measures.
These measures can help with cutting down energy loss from a building and lead to less energy use. Support includes insulation and heating packages to low income and vulnerable households and insulation measures to low income communities.
Energy efficiency plays a key role in helping to lower energy bills. Following installation of most measures the difference will be immediate. Assuming that a consumer has been heating their home to an adequate level, they can continue doing so, but by using their heating less, resulting in significant bill reductions. Each house will require different measures for the optimum result, which is why it is important for the householder to work closely with their provider or installer to select best options.
- The Carbon Emissions Reduction Obligation (CERO) which focuses on the promotion of hard-to-treat homes. Solid wall insulation and hard-to-treat cavity wall insulation are two examples. Other insulation measures and connections to district heating systems are also eligible. Some CERO must also be delivered in rural areas.
- The Home Heating Cost Reduction Obligation (HHCRO) which focuses on the promotion of 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.
Read more information on Energy Companies Obligation on Ofgem’s website.
How the savings are being passed on
The largest energy companies have all made commitments to reduce customer bills following the Government’s announcement of a restructure of the Energy Companies Obligation (ECO). For more information see our table detailing the actions of each energy supplier and savings passed on (PDF 500KB).