Energy Company Obligation

Last updated: 5 November 2017
In 1994, the United Kingdom introduced energy efficiency obligations with the goal of achieving energy savings. The latest iteration of the oligation is the Energy Company Obligation which began in April 2013, and over time it has been amended. The latest phase, ECO3, commenced on 3 December 2018, and applies to measures completed from 1 October 2018. EC03 wfocuses on one obligation, the Home Heating Cost Reduction Obligation (HHCRO). Under HHCRO, obligated suppliers must mainly promote measures which improve the ability of low income, fuel poor and vulnerable households to heat their homes. This includes actions that result in heating savings, such as the replacement of a broken heating system or the upgrade of an inefficient heating system. Under ECO2, which ran from 1 April 2017 to 30 September 2018, suppliers were also required to deliver against an additional obligation called the Carbon Emissions Reduction Obligation (CERO).

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