MCS published its response to the Department for Energy Security and Net Zero (DESNZ) consultation on extending the Energy Company Obligation (ECO4) scheme on 2 October 2025, welcoming the proposal and advocating a nine-month extension1. Consumer Scotland, the statutory body for consumers in Scotland, published its own response on 1 October 2025, saying it is "broadly supportive of the proposal to extend the date by which obligated suppliers may deliver to their ECO4 target"2.
DESNZ's consultation proposed an extension to ECO4 of 6 to 9 months and asked for views on how to deliver stronger consumer protections under the scheme1. ECO4's original end date is 31 March 20262. MCS said it welcomes the proposals and advocates a nine-month extension "provided it is properly funded, clearly communicated, and prioritises strong consumer protections"1.
"A sudden gap between ECO4 and its successor could negatively impact the small-scale renewables market, undermining installer confidence and reducing capacity at precisely the point when the sector needs to expand."
MCS said ECO4 drives installation of renewables, "especially heat pumps and solar panels", helping low-income and vulnerable households access low-carbon technologies1. Its response set out consumer protection measures it wants considered, including an ECO-specific outbound-calls programme to gather feedback on the consumer experience of an ECO4 installation, clarifying contracting and subcontracting requirements, strengthening pre- and post-install information for households, and tightening oversight of lead-generation tactics to clamp down on misleading marketing and unethical sales1.
Consumer Scotland addressed the consultation's questions in turn. On carry-over, it said it broadly supports allowing suppliers to carry over up to 20% of their ECO4 obligation, noting surplus annual bill savings carry-over has been in place in all ECO schemes prior to ECO4, but that it cannot give specific feedback on carry-over into future schemes because proposals on future home upgrade obligations will not be published until later this year2. It agreed the solid wall minimum requirement and Energy Funded Grant minimum requirement should remain at current levels and be achieved by the new end date, citing a current total for Phases 1 to 4 of 45,000 properties treated for solid wall insulation and £77,950,000 for the EFG minimum requirement2. It also supported honouring existing Innovation Measure applications while not allowing new ones over the extension period2.
Consumer Scotland cited potential savings from solid wall insulation of as much as £550 per year for detached houses and £160 per year for mid-floor flats in Scotland, England and Wales, alongside carbon dioxide savings of 1,500 kgCO2/year and 410 kgCO2/year respectively2. It encouraged impact assessments to evaluate whether extending the ECO4 end date but not the Great British Insulation Scheme (GBIS) end date could have disproportionate negative impacts2.
Why it matters for households
ECO4 is the obligation under which energy suppliers fund energy efficiency and low-carbon heating measures in low-income and vulnerable households, so the date it ends determines whether that funded work continues without a break1. A gap between ECO4 and its successor could reduce installer capacity in the small-scale renewables market, which MCS links to the availability of installations under the scheme1. For a household, the practical questions are whether funded measures such as insulation, heat pumps and solar panels remain available through the scheme, and what protections apply during the work. Both responses focus on the consumer journey: MCS wants clearer pre- and post-install information and tighter oversight of lead-generation and sales tactics1, while Consumer Scotland welcomes additional standards for monitoring service quality and applies its "four Cs" framework of cost, convenience, clarity and confidence2. Consumer Scotland also notes that extending ECO4 but not GBIS could affect consumers differently, and says impact assessments should examine this2.
What happens next
DESNZ has not published its decision on the extension in the material available; the consultation proposed 6 to 9 months and sought views on consumer protections1. Consumer Scotland said proposals on future home upgrade obligations will not be published until later this year2. MCS said it will continue to liaise with government on ECO4 and share updates with its installer base1.
Sources2 cited
- MCS responds to consultation on extending ECO4 - MCS, mcscertified.com
- Extending the ECO4 end date (HTML) | Consumer Scotland, consumer.scot