What is Energy Company Obligation (ECO)?

The Energy Companies Obligation (ECO) is an energy efficiency programme that was introduced into Great Britain at the beginning of 2013 to obligate larger suppliers to deliver energy efficiency measures to domestic premises in Britain.

ECO replaces two previous schemes, the Carbon Emissions Reduction Target (CERT) and the Community Energy Saving Programme (CESP).


ECO is broken down into 3 separate segments:

Home Heating Cost Reduction Obligation

Under the Home Heating Cost Reduction Obligation (boiler replacement), energy suppliers are required to provide measures which improve the ability of low income and vulnerable households (the ‘Affordable Warmth Group’) to heat their homes. This includes actions that result in heating savings, such as the replacement or repair of a boiler.

Community Obligation

Under the Carbon Saving Community Obligation, energy companies must focus on the provision of insulation measures and connections to domestic district heating systems supplying areas of low income. This target has a sub-target, which states that at least 15 per cent of each supplier’s Carbon Saving Community Obligation must be achieved by promoting measures to low income and vulnerable households living in rural areas.

Carbon Emissions Reduction Obligation

Under the Carbon Emissions Reduction Obligation, energy companies must concentrate efforts on hard-to-treat homes and measures that cannot be fully funded through the Green Deal. Solid wall insulation and hard-to-treat cavity wall insulation are the primary areas for focus under this target. Other insulation measures and connections to district heating systems are also eligible if they are promoted as part of a package that includes solid wall insulation or hard-to-treat cavity wall insulation.

You could qualify for a 100% fully funded A Rated boiler if yours is broken down or over 7 years old and not working properly. For more information on what energy efficient measures you could be entitled to, please click below.