UK ECO4 refers to the fourth phase of the Energy Company Obligation (ECO) scheme in the UK. ECO is a government funded program that aims to improve energy efficiency and reduce fuel poverty in homes across the UK. ECO4 covers the period from April 2022 to March 2026.
Under the £4 billion ECO4 programme, heating and energy-saving measures are being provided to households in England, Scotland and Wales. Some of the key features and policies of ECO4 include:
Continuing ECO3 measures:
Up to 10% of an ECO3 distribution can be transferred to ECO4, subject to certain exclusions. In addition, from April 1, 2022 to June 30, 2022, measures may be applied under the ECO3 rule to support supply chain distribution, subject to exceptions.
Early implementation of ECO4 measures – Measurements can be made early in any gap between ECO regulations.
Support for low-income households:
ECO4 aims to support the lowest income households. Subsidy households are subject to a qualifying vehicle check and can meet up to 50% of the obligation target under the ECO4 Flex reform, which is aimed at low-income households that do not receive benefits. ECO4 Flex is voluntary for local Scottish and Welsh governments and mandatory suppliers.
Qualification:
Only homes in the D-G energy efficiency category are eligible for ECO4. For social housing and private rental housing, ECO4 supports the housing in the E-G bracket.
Targeted measures:
ECO4 includes a variety of specific goals, such as increasing the Energy Company (ECO) funding target to deliver 150,000 private homes, a minimum target of 90,000 solid walls over the 4-year program. and a 5,000-home-per-year cap for replacing broken boilers and electric storage heaters (ESH), among other things.
Improvements and offers:
ECO4 provides enhancements for innovation to reward improvements and distinguish between relative and significant improvements. Demonstration stock will be phased out and there will be a 35% increase in gas-free rural areas in Scotland and Wales to encourage deliveries. The Ofgem-managed ECO4 and its guidance documents provide detailed information on regulatory requirements and administrative processes for suppliers and the broader supply chain.
It is important to note that ECO4 focuses on home heating and energy saving measures and is not related to other topics or programs with similar names.