Closed consultation

Amending the ECO4 Order to allow cost recovery via grant funding

• From: Department for Energy Security and Net Zero
• Published: 8 December 2025

Applies to England, Scotland and Wales

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Summary

We are seeking views on making a small change to the Energy Company Obligation (ECO4) Order, to specify which government grants cannot fund the scheme.

This consultation ran from
10am on 8 December 2025 to 11:59pm on 5 January 2026

Consultation description

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

Read our consultation privacy notice.

Documents

Consultation on amending the ECO4 Order to allow cost recovery via grant funding

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Published 8 December 2025