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Innovation Measure and Data light Measure applications close

Ofgem has closed the ECO4 Innovation Measure and Data light Measure application routes, with no applications accepted after 31 March 2026, following amendments to the ECO4 Order.

A newspaper on a kitchen table beside a model of grants and schemes

Ofgem, the administrator of the Energy Company Obligation, has confirmed that Innovation Measure (IM) and Data light Measure (DLM) applications under the ECO4 scheme will not be accepted after 31 March 2026. The change follows amendments made to the ECO4 Order in 20261. Applications received before that date will still be considered1.

The two routes sat within the scheme's New Measures and Products (NMAP) framework, which Ofgem describes as supporting "innovative measures that can provide further energy efficiency improvements, or that offer additional benefits"1. The IM route awarded a score uplift of either 25% or 45% to measures showing an improvement over comparable measures already deliverable under ECO, with delivery capped at 10% of a supplier's total obligation2. The DLM route created a new measure type and set of scores for technologies not currently deliverable under an existing measure type, with each DLM capped at 5,000 qualifying actions2.

"Following the amendments made to the ECO4 Order in 2026, IM and DLM applications will not be accepted after 31 March 2026."
Ofgem, Energy Company Obligation 2022-26 (ECO4) Guidance: New Measures and Products1

The Standard Alternative Methodology (SAM) route remains open. Ofgem states that "SAM applications may still be submitted beyond 31 March 2026"3. District heating connection measures can still be approved as an alternative methodology, but cannot be approved via the DLM route3. Ofgem also states it is "no longer carrying out Technical Advisory Panel meetings"2.

The closure sits alongside wider changes to ECO4. The government response to its consultation on extending the ECO4 end date confirms that "the final date for submitting IM and DLM applications will be 31 March 2026" and that "no new applications for Innovation Measures or Data Light Measures will be accepted during the extension, but existing uplifts will be honoured"4. The same response states that ECO4 will be extended by nine months, ending on 31 December 2026, and that "there will be no successor supplier obligation to ECO4"4.

RouteStatus after 31 March 2026
Innovation Measure (IM)Closed to new applications1
Data light Measure (DLM)Closed to new applications1
Standard Alternative Methodology (SAM)Applications may still be submitted3

Why it matters for households

The IM and DLM routes were optional for obligated suppliers, and were used to bring newer technologies and products into ECO4 where standard scoring did not capture their benefits2. Their closure narrows the set of routes through which a product can be recognised under the scheme. For a household, this affects which measures can be delivered and scored under ECO4, rather than the core insulation and heating measures delivered through the scheme's standard routes. The ECO4 scheme itself continues, and the government response states that existing uplifts granted under the IM route will be honoured during the extension4. Households considering energy efficiency work funded through supplier obligations can find the wider picture in the grants and schemes section.

What happens next

ECO4 runs to 31 December 2026 following the nine-month extension4. The Great British Insulation Scheme ends as planned on 31 March 20264. No successor supplier obligation to ECO4 has been announced, and the government has committed additional grant funding of £1.5bn directed to upgrading low-income households, bringing the Warm Homes Plan to just under £15bn in capital investment4.

Sources4 cited
  1. Energy Company Obligation 2022-26 (ECO4) Guidance: New Measures and Products | Ofgem, ofgem.gov.uk
  2. ECO4 Innovation: New Measures and Products | Ofgem, ofgem.gov.uk
  3. ECO4 Guidance: New Measures and Products, ofgem.gov.uk
  4. Extending the ECO4 end date: government response (HTML) - GOV.UK, gov.uk