Amending the ECO4 Order to allow cost recovery via grant funding

Overview

Obligated energy suppliers have spent more than was anticipated in the impact assessment. To protect against a bill increase, government plans to pay the suppliers through Exchequer funding. The Energy Company Obligation (ECO4) legislation currently states that measures cannot qualify against an energy suppliers’ obligation if they are grant-funded.

This consultation proposes amending the ECO4 legislation to specify the government grants from which money is not to be received. This would allow grants from public funds to be made by the government specifically for the purposes of funding ECO4 measures (rather than these other named schemes).

This consultation is open to all but of particular relevance to:

• energy suppliers
• energy efficiency and heating measure installers
• local authorities
• consumer groups
• academic groups