Energy Company Obligation (ECO)—key features of ECO1 and ECO2 [Archived]
Energy Company Obligation (ECO)—key features of ECO1 and ECO2 [Archived]

The following Environment guidance note provides comprehensive and up to date legal information covering:

  • Energy Company Obligation (ECO)—key features of ECO1 and ECO2 [Archived]
  • Energy Company Obligation (ECO) replaces Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP)
  • What is the ECO?
  • How does the ECO work?
  • ECO1
  • ECO2
  • ECO1
  • ECO2
  • ECO obligations for suppliers
  • ECO1
  • more

Energy Company Obligation (ECO) replaces Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP)

The Energy Company Obligation (ECO) was introduced in January 2013 to replace the Carbon Emissions Reduction Target (CERT) which ran between 1 April 2008 and 31 December 2012 and the Community Energy Saving Programme (CESP) which ran between 1 October 2009 and 31 December 2012.

CERT (which replaced the Energy Efficiency Commitment) required certain gas and electricity suppliers to achieve targets for reducing carbon emissions within domestic properties and CESP aimed to reduce carbon emissions by requiring gas and electricity suppliers and electricity generators to deliver energy saving measures to domestic consumers in specific low income areas of Britain.

What is the ECO?

ECO works alongside the domestic Green Deal in providing support and funding for energy efficiency improvements in existing properties, but is focused on supporting the installation of energy efficiency measures in low income households and areas and those harder to treat properties, where the most effective carbon saving measures don’t meet the Green Deal’s Golden Rule.

Note that in July 2015, the Energy Secretary Amber Rudd, announced the Green Deal Finance Company and the related home improvement fund would no longer receive funding, effectively ending the Green Deal scheme (though see below on the resurrection of the scheme). This was due to