Citation, commencement and extent

1.—(1) This Order may be cited as the Electricity and Gas (Energy Company Obligation) (Amendment) Order 2025.

(2) This Order comes into force on the day after the day on which it is made.

(3) This Order extends to England and Wales and Scotland.

Interpretation

2. In this Order—

“ the 2022 Order ” means the Electricity and Gas (Energy Company Obligation) Order 2022 ( 5 );

“ the 2023 Order ” means the Electricity and Gas (Energy Company Obligation) Order 2023 ( 6 );

“ ECO4 project ” has the meaning given in article 2(1) of the 2022 Order.

Amendment of the 2022 and 2023 Orders

3. The 2022 Order and the 2023 Order are amended in accordance with this Order.

Change to definition of “rural area”

4. —(1) In the 2022 Order, in article 2 for the definition of “rural area” substitute—

““rural area” means—

(2) In the 2023 Order for article 30(3) substitute—

“(3) In this article—

“off-gas premises” has the meaning given in article 2(1) of the 2022 Order;

“rural area” means—

(3) The amendment made by paragraph (1) applies in relation to a measure where the Administrator is first notified, in writing, of the ECO4 project of which the measure forms part on or after the day on which this Order comes into force.

(4) The amendment made by paragraph (2) applies in relation to a measure where the Administrator is notified in accordance with article 25 of the 2023 Order of the measure on or after the day on which this Order comes into force.

Installation standards: referrals by TrustMark

5.—(1) In the 2022 Order—

(a)in article 24—

(i)for paragraph (5)(b) substitute—

“(b)where an insulation measure is installed as part of an ECO4 project, the requirement that either—

(i)the insulation measure is installed by, or under the responsibility of, a person who is registered with TrustMark for the purposes of that measure and—

(aa)a certificate of lodgement is issued by the operator of TrustMark in respect of that measure; and

(bb)the installation adheres to the relevant TrustMark requirements for quality assurance and consumer protection, including installation standards and arrangements for repairs and other remedies, required by virtue of the TrustMark registration; or

(ii)the insulation measure—

(aa)is installed subject to arrangements for quality assurance and consumer protection, including installation standards and arrangements for repairs and other remedies, which are equivalent to the requirements under TrustMark; and

(bb)adheres to those requirements.”;

(ii)after paragraph (5) insert—

“(6) For the purposes of paragraph (5)(b) the installation is deemed to adhere to the relevant TrustMark or equivalent requirements unless—

(a)the measure is referred for failing to meet the relevant requirements to the Administrator by TrustMark or the equivalent person; and

(b)that referral is not withdrawn before 1st July 2026.”;

(b)in article 31—

(i)for paragraph (1)(c) substitute—

“(c)where the measure does not fall within sub-paragraph (b), either—

(i)the measure is installed by, or under the responsibility of, a person who is registered with TrustMark for the purposes of that measure and—

(aa)a certificate of lodgement is issued by the operator of TrustMark in respect of that measure; and

(bb)the installation adheres to the relevant TrustMark requirements for quality assurance and consumer protection, including installation standards and arrangements for repairs and other remedies, required by virtue of the TrustMark registration; or

(ii)the measure—

(aa)is installed subject to arrangements for quality assurance and consumer protection, including installation standards and arrangements for repairs and other remedies, which are equivalent to the requirements under TrustMark; and

(bb)adheres to those requirements.”;

(ii)after paragraph (1) insert—

“(1A) For the purposes of paragraph (1)(c) the installation is deemed to adhere to the relevant TrustMark or equivalent requirements unless—

(a)the measure is referred for failing to meet the relevant requirements to the Administrator by TrustMark or the equivalent person; and

(b)that referral is not withdrawn before 1st July 2026.”.

(2) In the 2023 Order, in article 24 for paragraph (1) substitute—

“(1) A measure meets the requirements of this article if—

(a)the measure is installed by, or under the responsibility of, a person who is registered with TrustMark for the purposes of that measure and—

(i)a certificate of lodgement is issued by the operator of TrustMark in respect of that measure; and

(ii)the installation adheres to the relevant TrustMark requirements for quality assurance and consumer protection, including installation standards and arrangements for repairs and other remedies, required by virtue of the TrustMark registration; or

(b)the measure—

(i)is installed subject to arrangements for quality assurance and consumer protection, including installation standards and arrangements for repairs and other remedies, which are equivalent to the requirements under TrustMark; and

(ii)adheres to those requirements.

(1A) For the purposes of paragraph (1) the installation is deemed to adhere to the relevant TrustMark or equivalent requirements unless—

(a)the measure is referred for failing to meet the relevant requirements to the Administrator by TrustMark or the equivalent person; and

(b)that referral is not withdrawn before 1st July 2026.”.

(3) The amendments made by paragraphs (1) and (2) apply in relation to a measure where the installation is completed on or after the day on which this Order comes into force.

Advice on benefits of smart meters

6.—(1) In the 2022 Order, in article 31 after paragraph (1)(a) insert—

“(aa)the advice on the benefits of using a smart meter in accordance with sub-paragraph (a) includes—

(i)guidance on arranging the installation of a smart meter; and

(ii)an invitation to the household to make a non-binding pledge to arrange the installation of a smart meter;”.

(2) In the 2023 Order, in article 22 after paragraph (1)(a) insert—

“(aa)the advice on the benefits of using a smart meter in accordance with sub-paragraph (a) includes—

(i)guidance on arranging the installation of a smart meter; and

(ii)an invitation to the household to make a non-binding pledge to arrange the installation of a smart meter;”.

(3) The amendments made by paragraphs (1) and (2) apply in relation to a measure where the installation is completed on or after the day on which this Order comes into force.

Reassignment of ECO4 savings to ECO4A scheme

7.—(1) In the 2022 Order, after article 82 insert—

Reassignment of ECO4 savings to the ECO4A scheme

82A.—(1) For the purposes of articles 10(1) and (2) and 82(1)(a), any amount of a participant’s annual cost savings which is reassigned under article 34A of the 2023 Order no longer contributes towards the achievement of the participant’s total home-heating cost reduction obligation.

(2) If—

(a)a participant has reassigned an amount under article 34A of the 2023 Order; and

(b)there is a question about the qualification of any action the savings of which are proposed to be contributed towards the achievement of any obligation under this Order,

any conclusion that the action does not qualify must be resolved only by reference to the amount of the participant’s annual cost savings which have not been reassigned.”.

(2) After article 34 of the 2023 Order, insert—

Reassignment of ECO4 savings to the ECO4A scheme

34A.—(1) This article applies to a participant who is also an ECO4 participant.

(2) A participant may apply to the Administrator for an amount of the participant’s annual cost savings from ECO4 qualifying actions to be reassigned so as to be contributed towards the achievement of—

(a)the participant’s total home-heating cost reduction obligation;

(b)the participant’s total low-income minimum requirement,

(“relevant ECO4A obligations”).

(3) A reassignment approved under this article is subject to the following conversion—

• Step 1

  Take the amount of the participant’s annual cost savings from ECO4 qualifying actions to be reassigned

• Step 2

  Multiply the amount taken at step 1 by 1.251

(In this article “converted” means converted in accordance with this paragraph.)

(4) “ECO4 qualifying action” means a qualifying action within the meaning of article 11(1) of the 2022 Order.

(5) An application may not be made to reassign an amount which, as converted, exceeds 75% of the participant’s total home-heating cost reduction obligation.

(6) An application under paragraph (2) must—

(a)be made, in writing, on or before 31st July 2026;

(b)state the amount of annual cost savings proposed to be reassigned;

(c)state the amount, as converted, proposed to be contributed towards the achievement of the participant’s relevant ECO4A obligations; and

(d)include such other information as the Administrator may require.

(7) The Administrator must reject the application if the requirements in paragraphs (2) to (6) are not met.

(8) If the Administrator rejects the application, it must notify in writing the participant of the rejection and of any reasons for that decision.

(9) If the Administrator approves the application—

(a)for the purposes of articles 9(1), (2) and (5)(c) and 35(1)(a) and (b) (so far as it relates to article 9(5)(c)) the amount set out in accordance with paragraph (6)(c) is contributed towards the achievement of the participant’s relevant ECO4A obligations; and

(b)the Administrator must notify the participant in writing of the matters mentioned in paragraph (10).

(10) The matters are—

(a)the amount mentioned in paragraph (6)(b) and the consequence that this will no longer contribute towards the achievement of the participant’s obligations under the 2022 Order in accordance with article 82A of that Order;

(b)the amount mentioned in paragraph (6)(c) and the consequence that this will contribute towards the achievement of the participant’s relevant ECO4A obligations; and

(c)the date on which the application was approved.”.

(3) The amendments made by paragraphs (1) and (2) apply—

(a)in relation to any amount of a participant’s annual cost savings under the 2022 Order (subject to the limit mentioned in article 34A(5) of the 2023 Order); and

(b)irrespective of when any installation for the measure relating to those savings is or was completed.

ECO4 scheme: updated PAS 2030 and PAS 2035 standards

8.—(1) In the 2022 Order—

(a)in article 2—

(i) in the definition of “novel data light measure” for “PAS 2030:2019” substitute “2030:2023” ;

(ii) omit the definitions of “PAS 2030:2019” and “PAS 2035:2019”;

(iii)at the appropriate places insert—

““PAS 2030:2023” means Publicly Available Specification 2030:2023(11);”;

““PAS 2035:2023” means Publicly Available Specification 2035:2023(12);”;

(iv) in the definition of “TrustMark Data Warehouse” for “PAS 2035:2019” substitute “PAS 2035:2023” ;

(b)in article 30(4)—

(i) in the definition of “improvement options evaluation report” for “clause 9.2.6 of PAS 2035:2019” substitute “clause 8.1.4 of PAS 2035:2023” ;

(ii) in the definition of “retrofit coordinator” for “clause 3.26 of PAS 2035:2019” substitute “clause 3.29 of PAS 2035:2023” ;

(c) in article 34(2)(e) for “PAS 2030:2019” substitute “PAS 2030:2023” ;

(d) in article 39(3)(b) “PAS 2030:2019” substitute “PAS 2030:2023”;

(e)in article 62(2)—

(i)in sub-paragraph (e)—

(aa) for “PAS 2030:2019” substitute “PAS 2030:2023” ;

(bb) for “PAS 2035:2019” substitute “PAS 2035:2023” ;

(ii)in sub-paragraph (f)—

(aa) for “PAS 2030:2019” substitute “PAS 2030:2023” ;

(bb) for “PAS 2035:2019” substitute “PAS 2035:2023” .

(2) The amendments made by paragraph (1) apply in relation to a measure where the installation is completed on or after the day on which this Order comes into force.

ECO4 scheme off-gas hierarchy: improvement options evaluation reports

9.—(1) In the 2022 Order, in article 30—

(a)for paragraph (3)(d) substitute—

“(d)if the measure is not one of the measures recommended in the most recent options evaluation report produced in relation to the premises immediately before the only or first measure which is part of the ECO4 project is completed; or”;

(b)for paragraph (3)(e)(i) substitute—

“(i)there is no improvement options evaluation report of the type mentioned in sub-paragraph (d);”.

(2) The amendments made by paragraph (1) apply in relation to a measure (“ A ”) where the installation of the only or first measure of the ECO4 project of which A forms part is completed on or after the day on which this Order comes into force.

ECO4 scheme innovation measures: shared ground loops

10. In the 2022 Order, in article 34 after paragraph (5) insert—

“(6) In paragraph (2)(f)(ii) the reference to a “district heating connection” does not include a connection to a district heating system that uses a shared ground loop.”.

ECO4 scheme installation standards: building fabric repair

11.—(1) In the 2022 Order, in article 62 for paragraph (2)(d)(i) substitute—

“(i)is recommended in a report by a chartered surveyor pursuant to an assessment of the domestic premises performed for the purpose of assessing the condition of the insulation and related building fabric; and”.

(2) The amendment made by paragraph (1) applies in relation to an ECO4 project where the installation of the only or first measure of the project is completed on or after the day on which this Order comes into force.

ECO4A scheme: overall amounts for purposes of determining total obligations

12. In the 2023 Order—

(a)in article 9—

(i)for paragraph (2) substitute—

“(2) A participant must achieve its total home-heating cost reduction obligation by ensuring that the overall amount, as determined under article A35(2) to (5), is equal to, or exceeds, the participant's total home-heating cost reduction obligation.”;

(ii)for paragraph (5) substitute—

“(5) In achieving its total home-heating cost reduction obligation, a participant must also promote low-income qualifying actions that—

(a)are completed before the end of phase A, and have a combined score equal to, or exceeding, 90% of the participant's low-income minimum requirement for phase A;

(b)are completed before the end of phase B, and have a combined score equal to, or exceeding, 90% of the participant's low-income minimum requirement for phase B; and

(c)contribute to an overall amount, as determined under article A35(6) to (8), which is equal to, or exceeds, the participant's total low-income minimum requirement.”;

(b)in article 29, after paragraph (4) insert—

“(5) Article A35 sets out further provision for determining whether a participant has achieved its—

(a)total home-heating cost reduction obligation under article 35(1)(a); and

(b)total low-income minimum requirement under article 35(1)(b).”;

(c)for the part heading before article 35 substitute—

“Part 9

Overall amounts, final determination, information and enforcement”

(d)before article 35 insert—

Overall amounts for purposes of determining total obligations

A35.—(1) This article makes provision for the determination of overall amounts for the purposes of determining whether a participant has achieved its—

(a)total home-heating cost reduction obligation under article 35(1)(a) (see paragraphs (2) to (5)); and

(b)total low-income minimum requirement under article 35(1)(b) (see paragraphs (6) to (8)).

(2) Before its final determination under article 35(1)(a), the Administrator must convert the sum of a participant’s scores in accordance with the following steps.

• Step 1

  Obtain the sum of all the participant’s scores (“A”)

• Step 2

  Multiply the participant’s total home-heating cost reduction obligation by 0.25 to get an amount (“B”)

• Step 3

  Subtract B from A to get a further amount (“C”) (where C is a negative number take E at step 5 to be A and go to paragraph (3))

• Step 4

  Multiply C by 1.716 to get an amount (“D”)

• Step 5

  Add D to B to get an amount (“E”)

(3) In step 1 in paragraph (2) “scores” includes any scores for measures transferred to the participant under article 33.

(4) E must be added to any amount, as converted, which is reassigned by the participant under article 34A to obtain an overall amount (“F”).

(5) F is the overall amount used for the purposes of determining whether the participant has achieved its total home-heating cost reduction obligation under article 35(1)(a).

(6) Before its final determination under article 35(1)(b) (so far as it relates to article 9(5)(c)), the administrator must take the following steps.

• Step 1

  Obtain the sum of all the participant’s scores for low-income qualifying actions (“G”)

• Step 2

  Add G to any amount, as converted, which is reassigned by the participant under article 34A to get an amount (“H”)

(7) In step 1 in paragraph (6) “scores” includes any scores for low-income qualifying actions transferred to the participant under article 33.

(8) H is the overall amount used for the purposes of determining whether the participant has achieved its total low-income minimum requirement under article 35(1)(b).”.

ECO4A scheme: maximum number of insulation measures per property

13.—(1) In the 2023 Order—

(a)in article 22—

(i)for paragraph (1)(c) substitute—

“(c)the insulation measure is notified by the participant to the Administrator in accordance with article 25 in respect of the domestic premises and—

(i)is the only or first insulation measure to have been installed at the premises; or

(ii)is the second insulation measure to have been installed at the premises where—

(aa)the first and second insulation measures are measures listed in paragraph (1A);

(bb)the participant who promoted the second insulation measure is the same as the participant who promoted the first one; and

(cc)the second insulation measure is completed on the same day as, or not more than three months after, the day on which the first one is completed.”;

(ii)after paragraph (1) insert—

“(1A) The measures are—

(a)cavity wall insulation;

(b)loft insulation;

(c)insulation against the escape of heat from a habitable room into the ground, or space, beneath the domestic premises; and

(d)insulation of a pitched roof.

(1B) For the purposes of paragraph (1)(c)(ii) where more than two insulation measures are notified to the Administrator in accordance with article 25 in respect of the domestic premises—

(a)it is the first of those insulation measures to have been completed at the domestic premises that—

(i)meets the requirements of paragraph (1)(a) and (b);

(ii)meets the requirements of article 11 (general requirements);

(iii)meets the condition in any one of articles 12 to 21 (eligible properties and measures); and

(iv)meets the requirements of article 24 (quality assurance and consumer protection); and

(b)it is the second of those insulation measures to have been completed at the domestic premises which meets the requirements referred to in sub-paragraph (a)(i) to (iv).

(1C) For the purposes of paragraph (1)(c)(ii), where more than two insulation measures are completed at the domestic premises at the same time, it is the two insulation measures notified to the Administrator first which are treated as being the first and second of those insulation measures to have been completed.”;

(iii)omit paragraph (2);

(b)in article 23 for paragraph (a) substitute—

“(a)is installed at the same domestic premises where an ECO4A qualifying action that is an only or first insulation measure within the meaning of article 22(1)(c)(i) (“the related insulation measure”);”;

(c)in article 33 after paragraph (1) insert—

“(1A) Where a participant (“A”)—

(a)proposes to transfer an insulation measure in relation to a domestic premises; and

(b)A has notified the Administrator of a second insulation measure at the same premises within the meaning of article 22(1)(c)(i) under article 25,

A may only apply to transfer the insulation measure under paragraph (1) to another participant (“B”) if A is applying to transfer both insulation measures to B.”.

(2) The amendments made by paragraph (1) apply in relation to a measure where the installation is or was completed on or after 14th November 2024.

ECO4A scheme: methodology for scoring smart thermostats

14.—(1) In the 2023 Order—

(a)in article 32, after paragraph (5) insert—

“(5A) This article is subject to article 32A.”;

(b)after article 32 insert—

Methodology for scoring smart thermostats

32A.—(1) This article applies to an ECO4A qualifying action for which—

(a)there is no methodology for determining annual cost savings in the Standard Assessment Procedure for Energy Rating of Dwellings (2012 Edition, version 9.92)(13); and

(b)there is a methodology for determining annual cost savings in the Standard Assessment Procedure for Energy Rating of Dwellings (2023 Edition, version 10.2)(14).

(2) Before the end of the 6 week period beginning with the day on which the Electricity and Gas (Energy Company Obligation) (Amendment) Order 2025(15) comes into force, the Administrator must publish, on its website, a methodology for the purposes of determining the annual cost savings of the qualifying action.

(3) The publication must state that the methodology has effect from 14th November 2024.

(4) Before publishing a methodology under this article, the Administrator must have regard to the Standard Assessment Procedure for Energy Rating of Dwellings (2023 Edition, version 10.2).

(5) On or before 30th June 2026, the Administrator may revise any methodology published under this article by publishing the revised methodology on its website.”.

(2) The methodology published by the Administrator in accordance with Article 32A(2) of the 2023 Order applies in relation to a measure which is the subject of the methodology where the installation is or was completed on or after 14th November 2024.