Energy Companies Obligation (ECO)

What is an Energy Companies Obligation?

The Energy Companies Obligation (ECO) was introduced in 2013 to legally make large energy suppliers deliver energy to domestic energy users.

ECO runs alongside the Green Deal, which is a scheme that can help you make energy saving improvements to your home or business, paid back over time as part of a loan through your energy bills. The ECO is split into three parts:

Affordable Warmth Obligation

This is for the energy companies to provide heating for low income households. This is means-tested.

Carbon Saving Obligation

This is for the energy companies to provide funding for insulation for solid walls. This is not means-tested, but runs alongside the Green Deal.

Carbon Saving Communities Obligation

This is for the energy companies to provide insulation for people living in the bottom 15 per cent of the UK’s most deprived areas.

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