The Electricity and Gas (Energy Company Obligation) (Amendment) Order 2025 became law on 29 July 2025, according to Ofgem's ECO4 delivery guidance1. The legislation itself records that it was made on 31 July 2025 and came into force on 1 August 20252. Ofgem's guidance states that after 29 July 2025, areas in England and Wales with Rural Urban Indicator codes RLN1, RSN1, RSF1 and RLF1 are considered rural1.
The Order substitutes the definition of "rural area" in the 2022 Order. For England and Wales, a rural area is now one classified as rural in the "2021 rural-urban classification of output areas" published by the Office for National Statistics in March 2025. For Scotland, it is an area classified as rural in the "Scottish Government Urban Renewal Classification 2022" published by the Scottish Government in December 20242. The rural definition also applies to the 2023 Order, which established the ECO4A scheme2.
The change applies to measures where the Administrator is first notified in writing of the ECO4 project on or after the day the Order came into force2. Ofgem's guidance refers to "the coming into force date of the Electricity and Gas (Energy Company Obligation) (Amendment) Order 2025 on 1 August 2025"1.
The Order also changed installation standards. Insulation measures must now be installed by, or under the responsibility of, a person registered with TrustMark for that measure, with a certificate of lodgement issued, or be installed under equivalent quality assurance and consumer protection arrangements2. An installation is deemed to adhere to those requirements unless it is referred to the Administrator by TrustMark or the equivalent person and that referral is not withdrawn before 1 July 20262. These amendments apply to measures where installation is completed on or after the day the Order came into force2.
Separately, the Order added a requirement that advice on the benefits of using a smart meter includes guidance on arranging installation and an invitation to the household to make a non-binding pledge to arrange one2. It also created a mechanism for suppliers to reassign ECO4 savings to the ECO4A scheme, with applications to be made in writing on or before 31 July 2026 and a conversion multiplier of 1.2512.
Why it matters for households
Rural classification determines whether a home can attract the rural uplift available under ECO4, so the change in indicator codes and the move to the 2021 Office for National Statistics classification for England and Wales, and the 2022 Scottish Government classification for Scotland, alters which properties fall inside the rural definition1. Homes newly classified as rural may become eligible for support they could not previously access, while the reverse is also possible. The Home Energy Scotland rural uplift operates under separate Scottish arrangements.
The TrustMark provisions affect what a household can expect by way of quality assurance and consumer protection when insulation is installed, and give a route by which a failing installation can be referred to the Administrator2. The smart meter provisions mean advice given alongside a measure must now include practical guidance on arranging installation2.
For homes in England, Home Energy Grants in England and for homes in Wales, Home Energy Grants in Wales set out the wider grant landscape. The Energy Company Obligation remains the supplier-funded route through which measures are delivered.
What happens next
The TrustMark referral window runs until 1 July 2026, after which a referral that has not been withdrawn ceases to affect the deemed adherence position2. Applications to reassign ECO4 savings to the ECO4A scheme must be made on or before 31 July 20262. Ofgem's guidance states that the overall obligation period for ECO4 runs from 27 July 2022 to 31 March 2026, with measures transferable until 30 June 20261. A later version of the same guidance, published 26 March 2026, states the obligation period runs to 31 December 2026 and that measures are transferable until 31 March 2027, reflecting an extension of ECO4 by nine months4. The two versions of the guidance therefore give different end dates for the scheme.
Sources4 cited
- ECO4 Guidance: Delivery, ofgem.gov.uk
- The Electricity and Gas (Energy Company Obligation) (Amendment) Order 2025, legislation.gov.uk
- The Electricity and Gas (Energy Company Obligation) Order 2023, legislation.gov.uk
- ECO4 Guidance: Delivery, ofgem.gov.uk