Updates

The Electricity and Gas (Energy Company Obligation) Order 2022

  • Legal

Jurisdiction: England, Scotland & Wales

Commencement: 28th July 2022

Amends: New Legislation

Mini Summary

The Electricity and Gas (Energy Company Obligation) Order 2022 establishes the fourth Energy Compliance Obligation scheme (ECO4) which will run until 31st March 2026.

Summary

This Order establishes the fourth Energy Compliance Obligation scheme (ECO4) which will run until 31st March 2026.

The scheme places duties on large energy suppliers* to implement energy efficiency measures with the aim to reduce the cost of heating domestic properties. Duties are also placed on the Gas and Electricity Markets Authority.

*Large energy suppliers are licenced gas and electricity suppliers** that exceed the minimum qualifying supply*** of electricity and gas supplied to domestic customers.

**Licenced gas and energy suppliers are suppliers who hold a licence under Section 6(1)(d) of the Electricity Act 1989  and / or a licence under Section 7A of the Gas Act 1986.

***Qualifying supply means:

  • 300 GWh (gigawatt hours) of electricity supplied per phase; or
  • 700 GWh of gas supplied per phase.

Phases
The scheme is split into 4 phases.

  • Phase 1: 27th July 2022 to 31st March 2023.
  • Phase 2: 1st April 2023 to 31st March 2024.
  • Phase 3: 1st April 2024 to 31st March 2025.
  • Phase 4: 1st April 2025 to 31st March 2026.

Previous ECO schemes ran from:

  • 1st January 2013 to 31st March 2015 under The Electricity and Gas (Energy Companies Obligation) Order 2012;
  • 1st April 2015 to 30th September 2018 under The Electricity and Gas (Energy Company Obligation) Order 2014; and
  • 3rd December 2018 to 31st March 2022 underThe Electricity and Gas (Energy Company Obligation) Order 2018.

Duties

Various duties apply

Link to full government text

 

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