Energy Company Obligation (ECO)
ECO was introduced by the UK Government to fund energy efficiency measures throughout the UK. It requires the big six energy suppliers to help householders save on their energy bills and carbon emissions.
Many Scottish households have benefited from energy efficiency measures provided by the Energy Company Obligation (ECO) and backed by Scottish Government programmes, such as our Home Energy Efficiency Programmes for Scotland, that were designed to use Scottish Government funding to attract further investment under the ECO.
UK Department of Energy and Climate Change statistics includes Scotland delivery figures.
The Scottish Government is set to gain further devolved powers regarding the design and implementation of supplier obligations in relation to energy efficiency and fuel poverty, such as ECO. We will look to use these powers to design programmes that are tailored towards Scotland taking account of fuel poverty issues and the wider Scotland's Energy Efficiency Programme. We expect that Scottish Ministers will look to use their devolved powers from April 2018.
In the meantime we will continue to work with the UK Department of Energy and Climate Change (DECC) to ensure Scotland benefits from current ECO. You can find our responses to recent consultations here:
- ECO: DECC consultation response, April 2014
- Revisions to the Ofgem ECO guidance for suppliers: consultation response, September 2014
Scale of ECO
The UK Chancellor announced in the 2015 UK Autumn statement that the current ECO scheme is to be replaced from 2017 with a cheaper £640 million per year scheme, saving an average of £30 from 24 million households across the UK.