Simplifying the New Changes to the UKs Energy Company Obligation

In a bid to enhance energy efficiency across the UK, the government has introduced the Electricity and Gas (Energy Company Obligation) (Amendment) Order 2025, which updates the ECO4 and ECO4A schemes. Here's what you need to know about these changes:

Key Updates to ECO4 and ECO4A Schemes

1. Redefining 'Rural Areas':

   • The definition of what constitutes a rural area has been updated, now relying on the latest classifications from the Office for National Statistics and the Scottish Government.

2. Installation Standards:

   • TrustMark, a government-endorsed quality scheme, plays a bigger role. Installations must either be under TrustMark or meet equivalent standards. If a measure fails to meet these standards, it must be addressed by July 2026.

3. Smart Meter Benefits:

   • Energy companies must provide clearer advice on the benefits of smart meters, including how to arrange their installation and encouraging households to consider adopting them.

4. Savings Reassignment:

   • There's a new option to reallocate savings achieved under the ECO4 scheme to the ECO4A scheme, helping companies meet different energy-saving targets more flexibly.

Focused Changes for ECO4 Scheme

1. Updated Standards:

   • The standards for energy efficiency measures (PAS 2030 and PAS 2035) have been updated, ensuring that installations meet the latest specifications.

2. Off-Gas Hierarchy:

   • Changes have been made to the evaluation reports for areas not connected to the gas grid, ensuring better improvement options.

3. Innovation in Measures:

   • New provisions have been added for innovative technologies like shared ground loops, which help in heating buildings more sustainably.

4. Building Repair Standards:

   • Enhanced standards for repairing building fabric are now in place, with input from chartered surveyors.

Specific Adjustments in ECO4A Scheme

1. Scoring and Obligations:

   • New methodologies for scoring energy-saving measures help companies meet their home-heating cost reduction targets more effectively.

2. Insulation Limitations:

   • Limits have been set on the number of insulation measures a single property can have, ensuring efficiency and avoiding overburdening properties with excessive installations.

3. Scoring Methodology for Smart Devices:

   • A new scoring method for smart thermostats has been introduced, using updated tools to calculate energy savings.

Why It Matters

These amendments are designed to streamline the process of improving energy efficiency in homes, making it easier for energy companies to meet their obligations while ensuring that installations are done to the highest standards. By updating these regulations, the government aims to push the UK further towards its energy efficiency and sustainability goals.

For more detailed information and the full impact assessment, you can visit the government’s legislation website or contact the Energy Company Obligation Team directly.