Updates

The Electricity and Gas (Energy Company Obligation) Order 2023

  • Legal

Jurisdiction: England, Wales, Scotland

Commencement: 24th July 2023

Amends: New legislation

 

Mini Summary

This Order establishes a new Energy Compliance Obligation (ECO) scheme, ECO4A, which operates in conjunction with the 4th Energy Compliance Obligation scheme (ECO4). These schemes place duties on large energy suppliers to implement energy efficiency measures and aim to reduce the cost of heating domestic properties.

Summary

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.

  1. Phase A: 25th July 2023 to 31st March 2024.
  2. Phase B: 1st April 2024 to 31st March 2025.
  3. Phase C: 1st April 2025 to 31st March 2026.

Duties

Various duties apply.

 

 

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