Consultation on extending the ECO4 end date
This consultation is open for responses
Respond to this consultationSummary
DESNZ proposes extending ECO4 by 6-9 months beyond March 2026 to maintain supplier obligations for installing energy efficiency measures. The extension allows obligated suppliers to deliver beyond their targets and carry delivery forward to future schemes. The consultation runs until late 2025 with implementation details to follow.
Why it matters
This is redistributive policy — it treats the symptom of expensive energy by subsidising insulation rather than addressing supply constraints or market structure. The extension maintains the status quo of socialising energy efficiency costs across all bill payers while providing continued transfers to eligible households.
Key facts
- •Current scheme ends 31 March 2026
- •Proposed 6-9 month extension
- •Allows carry-over delivery to future obligations
Timeline
Areas affected
Related programmes
Memo
The Energy Company Obligation (ECO4) scheme is due to end on 31 March 2026. It obligates the larger energy suppliers to deliver a target of annual bill savings by installing energy efficiency and heating measures into homes in Great Britain. These measures help households to keep their homes warmer, reduce their energy bills and carbon emissions. This consultation proposes a scheme extension of 6-9 months to maintain support for households and provide an opportunity for stronger consumer protections under the scheme. It also gives the supply chain certainty of continued work for the duration of the extension, providing time for potential future schemes to be explored. This consultation proposes and seeks views on a way for obligated suppliers to continue to deliver beyond their obligation target and for this additional delivery (carry-over) to count towards a possible future obligation. The consultation is open to all but of particular relevance to: * energy suppliers * energy efficiency and heating measure installers * energy efficiency measure manufacturers and associated software developers * local authorities * consumer groups * academic groups