Parts 1 to 9 of the Electricity and Gas (Energy Company Obligation) Order 2023, known as the ECO4A Order, came into force on 25 July 2023, commencing the obligation period of the Great British Insulation Scheme1. The Order itself was made on 24 July 2023, the day before commencement1. Ofgem, the Office of Gas and Electricity Markets, administers the scheme1.
The scheme places a legal obligation on energy suppliers to deliver energy efficiency measures to domestic premises, with each supplier's target based on its share of the domestic energy market in Great Britain1. Suppliers must achieve a total of £55,998.0002 in notional annual bill savings over the scheme's three years, to be met no later than 31 March 20261. That total is split into three phases:
| Phase | Period | Target |
|---|---|---|
| Phase A | 25 July 2023 to 31 March 2024 | £7,280,0009 |
| Phase B | 1 April 2024 to 31 March 2025 | £24,359,000 |
| Phase C | 1 April 2025 to 31 March 2026 | £24,359,000 |
Suppliers must meet at least 90% of their Phase A and Phase B targets through measures completed before the end of each phase, and will be able to transfer measures until 30 June 20261. All measures under the scheme must be completed after 30 March 2023 and on or before 31 March 20261. Measures delivered on or after 30 March 2023 until 24 July 2023 are known as early delivery measures1.
The scheme sits alongside the existing ECO4 scheme and is described in the guidance as an addition to it, intended to deliver rapid installation of energy efficiency measures1. A supplier cannot partially or wholly fund a measure with funding from other government schemes or grants, whether from local, devolved or national government1.
"The Great British Insulation Scheme which will run from 25 July 2023 (the date of commencement of the relevant parts of the ECO4A Order) until 31 March 2026"
Eligibility is split into groups. The general group can receive measures if they live in a home in Council Tax bands A to D in England, A to E in Scotland and A to E in Wales, with a SAP rating of D and below1. The low-income group mirrors the eligibility criteria for the Help to Heat Group under ECO4, focusing on SAP rated properties D, E, F and G with low-income and vulnerable households1. The guidance lists eligible insulation measures including cavity wall, external, internal and hybrid wall, loft, room-in-roof, pitched roof, floor, park home and solid wall insulation, alongside secondary measures such as TRVs, boiler programmers and room thermostats, and smart meter advice1.
Why it matters for households
The commencement date fixes the window in which work can count towards a supplier's obligation, and therefore the point from which installations can be delivered under the scheme. For a household, the practical effect is that a qualifying measure installed from 30 March 2023 onwards can count, while anything completed after 31 March 2026 cannot1. The Council Tax band and SAP rating conditions determine which group a home falls into, and the two groups carry different criteria1. Because a measure cannot be funded in part or whole by another government scheme or grant, households in receipt of other public funding for the same work are affected by that restriction1. Insulation reduces the energy needed to hold a home at a given temperature, which is the basis on which the scheme's savings are measured: the guidance defines the relevant reduction by reference to heating premises to 21 degrees Celsius in main living areas and 18 degrees Celsius elsewhere1.
What happens next
Phase A runs to 31 March 2024, with at least 90% of the Phase A target to be met through measures completed before that date1. Phase B runs from 1 April 2024 to 31 March 2025 and Phase C from 1 April 2025 to 31 March 20261. Measure transfers are permitted until 30 June 20261. The guidance does not state what happens to unmet targets after 31 March 2026.
Sources1 cited
- Great British Insulation Scheme Delivery Guidance V0.1, ofgem.gov.uk