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Ofgem publishes response to ECO4 and GBIS mid-scheme changes consultation

Ofgem has published its response to the government's consultation on mid-scheme changes to the Energy Company Obligation 4 and the Great British Insulation Scheme.

A newspaper on a kitchen table beside a model of rules and regulation

Ofgem published its response to the Department for Energy Security and Net Zero (DESNZ) consultation on mid-scheme changes to the Energy Company Obligation 4 (ECO4) and the Great British Insulation Scheme (GBIS) on 4 February 20251. The regulator classed the publication as a transparency document1.

DESNZ published the consultation on the 14th of November 2024, and it set out proposed changes to the design of both schemes1. Ofgem's document states:

"This document contains Ofgem's response to the [Energy Company Obligation 4 and the Great British Insulation Scheme: Mid-Scheme Changes] consultation."
Ofgem, 4 February 20251

The response covers two schemes that sit alongside each other in the household energy efficiency landscape. ECO4 is the current Energy Company Obligation scheme, while GBIS is the Great British Insulation Scheme1. Ofgem lists both under the scheme name field of the publication1.

The published response is available as a PDF of 359.59KB, titled "Ofgem's response to DESNZ Energy Company 4 (ECO4) and the Great British Insulation scheme (GBIS) Consultation on mid-scheme changes"1. The specific content of Ofgem's response, including which of the proposed design changes it supports or opposes, has not been reported in the material published alongside the document1.

Why it matters for households

ECO4 and GBIS are the two routes through which energy suppliers fund insulation and heating measures in homes, and both are administered under Ofgem's oversight1. Mid-scheme changes matter because they alter the rules partway through a scheme's life, which can affect which measures are eligible, how work is verified and how quickly installations proceed. For a household weighing up insulation or heating upgrades, the practical effect of any change depends on the final design DESNZ adopts after considering responses such as Ofgem's. The consultation itself proposed changes to the design of both schemes, but the detail of those proposals is not set out in the published response1.

What happens next

The consultation was published on the 14th of November 20241. Ofgem's response followed on 4 February 20251. No date for DESNZ's decision on the proposed mid-scheme changes, or for any resulting amendments to ECO4 and GBIS, has been reported1.

Sources1 cited
  1. Ofgem’s Response to DESNZ Energy Company 4 (ECO4) and the Great British Insulation scheme (GBIS) Consultation on mid-scheme changes | Ofgem, ofgem.gov.uk