Notice

Domestic energy tariff reductions 2026: ministerial direction

This direction requires energy suppliers to apply discounts to domestic tariffs from 1 April 2026, related to the RO to Exchequer scheme and closure of the ECO and GBIS schemes.

• From: Department for Energy Security and Net Zero
• Published: 18 March 2026

Applies to England, Scotland and Wales

Documents

RO and ECO costs schemes direction 2026 (PDF)

PDF, 501 KB, 29 pages

RO and ECO costs schemes direction 2026 (HTML)

HTML

Details

This ministerial direction is made by the Secretary of State for Energy Security and Net Zero under section 22(1) of the Energy Prices Act 2022.

The direction sets out:

• the legal requirement for domestic electricity suppliers to apply a discount to domestic tariffs from 1 April 2026, in exchange for grant funding equivalent to 75% of the cost of the domestic Renewables Obligation (RO)
• the legal requirement for obligated Energy Company Obligation (ECO) electricity and gas suppliers to remove the cost of the ECO4 and Great British Insulation (GBIS) schemes from domestic tariffs from 1 April 2026, reflecting scheme closure
• obligations for domestic energy suppliers to submit to reporting and auditing requirements
• the terms under which domestic electricity suppliers will receive grant funding through the RO to Exchequer scheme, including the requirement for suppliers to execute a deed

Guidance for energy suppliers

See the related Domestic energy tariff reductions 2026: guidance for energy suppliers.

Published 18 March 2026