Jurisdiction: England, Wales, Scotland
Commencement: 24th July 2023
Amends: New legislation
The Electricity and Gas (Energy Company Obligation) Order 2023 establishes a new Energy Compliance Obligation (ECO) scheme, ECO4A, which operates in conjunction with the 4th Energy Compliance Obligation scheme (ECO4).
The scheme places duties on large energy suppliers* to implement energy efficiency measures to reduce the cost of heating domestic properties.
*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 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.
The scheme is split into 3 phases.
- Phase A: 25th July 2023 to 31st March 2024.
- Phase B: 1st April 2024 to 31st March 2025.
- Phase C: 1st April 2025 to 31st March 2026.
Various duties apply.
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