Legalize / United Kingdom / Statutory-Instrument

The Electricity and Gas (Energy Company Obligation) Order 2022

Type Statutory-Instrument

Publication 2022-07-26

Last updated 2026-03-26

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Reform history JSON API

(ii) in a manner that would meet the prescribed standards applicable if the insulation measures had been first installed on the day immediately preceding the day on which the heating measure is completed.

(3) The insulation measures specified in this paragraph are—

(a) insulation of the floor area of the lowest storey of the premises containing a habitable room;

(b) insulation of a cavity wall which divides the premises from other premises under different occupation;

(d) where the premises include the top floor of the building in which they are located—

(i) insulation of the walls and ceiling of a room in the roof space of the premises; or

(ii) insulation of the roof area of the premises, by means of pitched roof or flat roof insulation;

(e) where the premises are a mobile home, insulation of the floor, walls and ceiling of the mobile home.

(4) For the purposes of paragraph (2)(b), an insulation measure that attracts an exemption under Part 11 in relation to the premises is to be treated as not being relevant to the premises.

(5) In this article, “prescribed standards” means—

(a) in respect of domestic premises—

(i) in England and Wales, the requirements set out in the Building Regulations 2010⁵¹;

(ii) in Scotland, the requirements set out in the Building (Scotland) Regulations 2004⁵²; and

(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.

(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 April 2027.

Minimum insulation requirement for band E, F and G and other band D premises

25

(1) This article applies where a heating measure—

(a) is installed as part of an ECO4 project at domestic premises for which the pre-project SAP band is band E, F or G; or

(b) is—

(i) installed as part of an ECO4 project at domestic premises for which the pre-project SAP band is band D; and

(ii) is a first time heating system or a district heating connection.

(2) Where this article applies, the minimum insulation requirement is met in respect of the heating measure if—

(a) before the day on which the heating measure is completed all the insulation measures specified in paragraph (3), so far as relevant to the premises, are installed at the premises; and

(b) those insulation measures are installed—

(i) where the insulation measures are part of the same ECO4 project as the heating measure, in accordance with the prescribed standards; or

(ii) where the insulation measures are not part of the same ECO4 project as the heating measure, in a manner that would meet the prescribed standards applicable if the insulation measures had been first installed on the day immediately preceding the day on which the heating measure is completed.

(3) The insulation measures specified in this paragraph are—

(a) where the premises are a mobile home, insulation of the floor, walls and ceiling of the mobile home;

(b) where the premises are not a mobile home—

(i) insulation of the exterior facing cavity walls of the premises; and

(ii) where the premises include the top floor of the building in which they are located—

(aa) insulation of the walls and ceiling of a room in the roof space of the premises; or

(bb) insulation of the roof area of the premises, by means of loft, pitched roof or flat roof insulation.

(4) For the purposes of paragraph (2), an insulation measure that attracts an exemption under Part 11 in relation to the premises is to be treated as not being relevant to the premises.

(5) In this article, “prescribed standards” has the same meaning as in article 24.

SECTION 2 — Additional requirements for heating measures

Additional requirements to be met by heating measures

26

A heating measure meets the requirements of this article if—

(a) it meets the requirements of article 27 (general requirements relating to heating measures); and

(b) where the measure is—

(i) installed at on-gas premises, it meets the requirements of article 28 (requirements specific to on-gas premises);

(ii) installed at off-gas premises, it meets the requirements of article 29 (requirements specific to off-gas premises).

General requirements relating to heating measures

27

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

(a) the measure is not—

(i) the installation of equipment for the generation of heat wholly or partly from coal; or

(ii) the installation of a connection to a district heating system that delivers heat generated wholly or partly from coal;

(b) where the measure is the installation of equipment for the generation of heat wholly or partly from biofuel, oil or liquefied petroleum gas, the measure—

(i) is installed at off-gas premises;

(ii) is a repair of a central heating system; and

(iii) complies with the off-gas heating hierarchy in article 30;

(c) where the measure is the installation of a connection to a district heating system that delivers heat generated wholly or partly from biofuel, oil or liquefied petroleum gas, the measure—

(i) is installed at off-gas premises;

(ii) is a repair of the district heating connection; and

(iii) complies with the off-gas heating hierarchy in article 30;

(d) where the measure is the installation of equipment for the generation of heat wholly or partly from mains gas, ... the measure is installed at on-gas premises;

(e) where the measure is the installation of an electric storage heater, but is not a repair—

(i) the measure has a responsiveness rating equal to, or greater than, 0.8 when assessed against the Standard Assessment Procedure; and

(ii) the measure—

(aa) replaces an electric heating system at on-gas premises;

(bb) is installed at on-gas premises where one or more electric storage heaters are already installed;

(cc) is installed at on-gas premises which, immediately prior to the installation of the measure, have neither an efficient heating system nor an inefficient heating system; or

(dd) is installed at off-gas premises;

(f) where the measure is the installation of an electric heating system, but is not a repair—

(i) the measure has a responsiveness rating equal to, or greater than, 0.8 when assessed against the Standard Assessment Procedure; and

(ii) the measure—

(aa) replaces an electric heating system at on-gas premises;

(bb) is installed at on-gas premises where one or more electric storage heaters are already installed;

(cc) is installed at on-gas premises which, immediately prior to the installation of the measure, have neither an efficient heating system nor an inefficient heating system; or

(dd) is installed at off-gas premises;

(g) where the measure is the installation of a central heating system or a district heating connection not referred to in sub-paragraph (f), but is not a repair, the measure is an efficient heating system;

(h) where the measure is the installation of a boiler, but is not a repair—

(i) it is an efficient boiler; and

(ii) where the boiler forms part of a wet central heating system, hydraulic balancing of the central heating system is carried out following the installation of the boiler;

(i) where the measure includes the installation of equipment for the generation of electricity by renewable means, the measure is installed at domestic premises—

(i) at which there is already installed—

(aa) a hydronic heat pump; or

(bb) an electric storage heater or an electric heating system that in either case has a responsiveness rating equal to, or greater than, 0.8 when assessed against the Standard Assessment Procedure; or

(ii) at which there is installed as part of the same ECO4 project as the measure—

(aa) a hydronic heat pump;

(bb) an electric storage heater, that meets the requirements of sub-paragraph (e)(i) and (ii); or

(cc) an electric heating system, that meets the requirements of sub-paragraph (f)(i) and (ii);

(j) where the measure is the installation of equipment for the generation of heat wholly or partly from biomass, the measure—

(i) is installed at premises which are in a rural area; and

(ii) generates heat from biomass which is wholly woodfuel; and

(k) where the measure is the replacement of an efficient boiler with another efficient boiler, the boiler being replaced is broken down and is not economically repairable.

(2) In paragraph (1)—

“hydraulic balancing” means the carrying out of steps to ensure the temperature difference is the same between the inlet and outlet of each radiator, or other heat emitter, in a heating system;

“mains gas” means a supply of the kind mentioned in section 5(1)(b) of the Gas Act 1986⁵³;

“woodfuel” has the same meaning as in paragraph 6 of Schedule 4A to the Renewable Heat Incentive Scheme Regulations 2018⁵⁴.

Requirements specific to heating measures installed at on-gas premises

28

(1) A heating measure installed at on-gas premises meets the requirements of this article if—

(a) where the measure is installed at premises which, immediately prior to the installation of the measure, have an efficient heating system which is not broken down, the measure—

(i) is—

(aa) a renewable heating system;

(bb) a district heating connection;

(cc) the installation of heating controls; or

(dd) an innovation measure; and

(ii) in the case of a replacement of the efficient heating system, is not a measure of the same kind as the heating system that is being replaced;

(b) where the measure is installed at premises which, immediately prior to the installation of the measure, have an efficient heating system which is broken down and can be economically repaired, the measure—

(i) is—

(aa) a renewable heating system;

(bb) a district heating connection;

(cc) the installation of heating controls;

(dd) an innovation measure; or

(ee) a repair of the heating system; and

(ii) in the case of a replacement of the efficient heating system, is not a measure of the same kind as the heating system that is being replaced;

(c) where the measure is installed at premises which, immediately prior to the installation of the measure, have an efficient heating system which is broken down and is not economically repairable, the measure—

(i) is—

(aa) a boiler, if the efficient heating system is broken down because a boiler forming part of that heating system is broken down;

(bb) a renewable heating system;

(cc) a district heating connection;

(dd) a central heating system;

(ee) an electric storage heater, but only if the efficient heating system which is broken down is an electric heating system or an electric storage heater;

(ff) the installation of heating controls; or

(gg) an innovation measure; and

(ii) is not a repair of the efficient heating system;

(d) where the measure is installed at premises which, immediately prior to the installation of the measure, have an inefficient heating system (whether or not broken down), the measure—

(i) is—

(aa) a boiler;

(bb) a renewable heating system;

(cc) a district heating connection;

(dd) a central heating system;

(ee) an electric storage heater, but only if the inefficient heating system ... is an electric heating system or an electric storage heater;

(ff) the installation of heating controls; or

(gg) an innovation measure; and

(ii) is not a repair of the inefficient heating system; and

(e) where the measure is installed at premises which, immediately prior to the installation of the measure, have neither an efficient heating system nor an inefficient heating system, the measure is—

(i) a wet central heating system;

(ii) a renewable heating system;

(iii) a district heating connection;

(iv) the installation of heating controls; ...

(v) an innovation measure.

(vi) an electric storage heater; or

(vii) an electric heating system.

(2) A heating measure installed at on-gas premises also meets the requirements of this article if—

(a) the measure—

(i) forms part of an ECO4 project which includes the installation of a district heating connection which meets the requirements of paragraph (1); and

(ii) is a wet central heating system installed after the completion of the installation of the district heating connection; or

(b) the measure is the installation of related electricity generation equipment.

Requirements specific to heating measures installed at off-gas premises

29

(1) A heating measure installed at off-gas premises meets the requirements of this article if—

(a) where the measure is installed at premises which, immediately prior to the installation of the measure, have an efficient heating system which is not broken down, the measure is—

(i) a measure that complies with the off-gas heating hierarchy in article 30, but in the case of a replacement of the efficient heating system, is not a measure of the same kind as the heating system being replaced;

(ii) the installation of heating controls; or

(iii) an innovation measure, but in the case of a replacement of the efficient heating system, is not a measure of the same kind as the heating system being replaced;

(b) where the measure is installed at premises which, immediately prior to the installation of the measure, have an efficient heating system which is broken down and can be economically repaired, the measure is—

(i) a repair of the efficient heating system, if the heating system is not fuelled by coal, biofuel, oil or liquefied petroleum gas;

(ii) a measure—

(aa) that complies with the off-gas heating hierarchy in article 30;

(bb) which, in the case of a replacement of the efficient heating system, is not a measure of the same kind as the heating system being replaced; and

(cc) which is not a repair of the efficient heating system, unless it is a measure that complies with the off-gas heating hierarchy in article 30 by virtue of being a measure referred to in article 30(2)(c)(ii);

(iii) the installation of heating controls; or

(iv) an innovation measure, but in the case of a replacement of the efficient heating system, is not a measure of the same kind as the heating system being replaced;

(c) where the measure is installed at premises which, immediately prior to the installation of the measure, have either an efficient heating system which is broken down and is not economically repairable or an inefficient heating system (whether or not broken down), the measure—

(i) is—

(aa) a measure that complies with the off-gas heating hierarchy in article 30;

(bb) the installation of heating controls; or

(cc) an innovation measure; and

(ii) is not a repair unless it is a measure that complies with the off-gas heating hierarchy in article 30 by virtue of being a measure referred to in article 30(2)(c)(ii); and

(d) where the measure is installed at premises which, immediately prior to the installation of the measure, have neither an efficient heating system nor an inefficient heating system, the measure is—

(i) a measure that complies with the off-gas heating hierarchy in article 30;

(ii) the installation of heating controls; or

(iii) an innovation measure.

(2) A heating measure installed at off-gas premises also meets the requirements of this article if—

(a) the measure—

(i) forms part of an ECO4 project which includes the installation of a district heating connection which meets the requirements of paragraph (1); and

(ii) is a wet central heating system installed after the completion of the installation of the district heating connection; ...

(b) the measure—

(i) is a repair of a renewable heating system; and

(ii) the heating system being repaired is not an inefficient heating system ; or

Hierarchy of heating measures installed at off-gas premises

30

(1) A measure complies with the off-gas heating hierarchy if it is a measure to which paragraph (2) applies.

(2) This paragraph applies to a measure which is—

(a) one of the following—

(i) a hydronic heat pump;

(ii) a wet central heating system which generates heat wholly from a hydronic heat pump; or

(iii) a connection to a district heating system that delivers heat generated wholly from a hydronic heat pump;

(b) if it is not possible to install any of the measures referred to in sub-paragraph (a) at the premises, either—

(i) a district heating connection (other than a district heating connection referred to in sub-paragraph (a)(iii)); or

(ii) if the premises are in a rural area, the installation of equipment for the generation of heat wholly or partly from biomass; or

(c) if it is not possible to install at the premises any of the measures referred to in sub-paragraphs (a) or (b), one of the following—

(i) an electric storage heater or an electric heating system, provided that—

(aa) the measure replaces an electric heating system at the premises;

(bb) the measure is installed at premises where one or more electric storage heaters are already installed; or

(cc) the measure is installed at premises which, immediately prior to the installation of the measure, have neither an efficient heating system nor an inefficient heating system; or

(ii) the repair of—

(aa) a renewable heating system which is an inefficient heating system;

(bb) a central heating system which is fuelled wholly or partly from biofuel, oil or liquefied petroleum gas; or

(cc) a connection to a district heating system that delivers heat generated wholly or partly from biofuel, oil or liquefied petroleum gas.

(3) For the purposes of paragraph (2), it is “not possible” to install a measure—

(a) if it is not reasonably practicable to install the measure;

(b) if it attracts an exemption under Part 11;

(c) if the measure is the installation of equipment for the generation of heat wholly or partly from biomass and the premises are not in a rural area;

(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

(e) if—

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

(ii) one or more EPC recommendation reports have been issued for the premises; and

(iii) the measure is not amongst the measures recommended in the most recent EPC recommendation report.

(4) In this article—

“EPC recommendation report” means a recommendation report included in an energy performance certificate, and for the purposes of this definition, “recommendation report”—in relation to domestic premises in England and Wales, has the meaning given in regulation 4(1) of the Energy Performance of Buildings (England and Wales) Regulations 2012⁵⁵;in relation to domestic premises in Scotland, has the same meaning as “recommendations report” in regulation 6A of the Energy Performance of Buildings (Scotland) Regulations 2008⁵⁶;

“improvement options evaluation report” means a report by a retrofit coordinator prepared under clause 8.1.4 of PAS 2035:2023 that recommends measures to improve the energy performance of the domestic premises;

“retrofit coordinator” has the meaning given in clause 3.29 of PAS 2035:2023.

CHAPTER 5 — Installation standards etc.

Installation standards, consumer protection and smart meter advice

31

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

(a) advice on the benefits of using a smart meter in domestic premises is provided to the household occupying the premises at which the measure is to be installed, and that advice is provided—

(i) in the case of a measure installed as part of an ECO4 project, before the completion of the first measure in the ECO4 project;

(ii) in the case of an in-fill measure, before the completion of the in-fill measure;

(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;

(b) where the measure is the installation of a district heating connection, other than a connection to a district heating system that uses a shared ground loop, the measure—

(i) is a connection to a district heating system registered with the Heat Trust Scheme;

(ii) is subject to arrangements for consumer protection which are equivalent to the requirements under the Heat Trust Scheme; or

(iii) includes the installation of a ground source heat pump at the domestic premises; and

(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.

(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 April 2027.

(2) In this article, “Heat Trust Scheme” means the scheme operated by Heat Customer Protection Ltd, a company registered in England and Wales with company number 09456667.

PART 6 — Applications relating to innovation measures

Part 6: interpretation

32

In this Part, “comparable measures”, in relation to a measure which is the subject of an application by a participant under this Part, means measures which—

(a) would otherwise be promoted by the participant; and

(b) are commonly available on the market in Great Britain.

Applications for approval as an innovation measure

33

(1) A participant may apply to the Administrator in writing for a measure that the participant intends to promote to be approved as a standard innovation measure or a substantial innovation measure.

(2) The application must be made no later than 31st March 2026 and must include the following information—

(a) the measure description;

(b) an explanation of how the measure is an improvement on comparable measures;

(c) in the case of an application for approval of the measure as a substantial innovation measure, a qualitative assessment as to whether the measure is a substantial improvement on comparable measures;

(d) the standards with which the measure conforms; and

(e) such other information relating to the measure as the Administrator may require.

Approval as a standard innovation measure or substantial innovation measure

34

(1) On receiving an application under article 33, the Administrator must decide whether to—

(a) approve the measure as a standard innovation measure;

(b) approve the measure as a substantial innovation measure; or

(2) The Administrator must not approve a measure as a standard innovation measure or a substantial innovation measure unless it is satisfied that—

(a) the measure is capable of resulting in a reduction in the cost of heating domestic premises;

(b) the measure description stated in the application is accurate and contains sufficient detail to distinguish the measure from comparable measures;

(d) the standards stated in the application in accordance with article 33(2)(d) include provisions designed to ensure the safety and efficacy of the measure on its installation;

(e) the measure is—

(i) a type of measure listed in Table A.1, A.2 or A.3 in Annex A to PAS 2030:2023;

(ii) a certified product under MCS; or

(iii) certified, by a person accredited to ISO/IEC 17065:2012, as conforming to the standards stated in the application in accordance with article 33(2)(d); and

(f) the measure is not—

(i) an ECO3 innovation measure;

(ii) a district heating connection;

(iii) the installation of equipment for the generation of heat wholly or partly from coal, biofuel, oil or liquefied petroleum gas;

(iv) the installation of equipment for the generation of heat wholly or mainly from a non-renewable source; or

(v) a repair.

(3) The Administrator may only approve a measure as a substantial innovation measure if—

(a) the assessment provided with the application in accordance with article 33(2)(c) states that the measure is a substantial improvement on comparable measures; and

(b) the Administrator is satisfied that the measure is a substantial improvement on comparable measures.

(4) The Administrator may only approve a measure as a standard innovation measure if the threshold in paragraph (3) is not met.

(5) For the purposes of this article, when considering whether a measure is a substantial improvement on comparable measures, the Administrator may have regard to such matters as it thinks fit, including the significance or extent, as compared to comparable measures, of any—

(a) increase in the annual cost savings of the measure;

(b) decrease in the cost of installing the measure;

(d) improvement in the overall environmental impact of the measure; or

(e) reduction in the disruption to householders during the installation of the measure.

(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.

Further applications: substantial innovation measures

35

(1) A participant may apply to the Administrator in writing for a measure to which paragraph (2) applies to be approved as a substantial innovation measure.

(2) This paragraph applies to a measure which—

(a) has been approved as a standard innovation measure; or

(b) is an ECO3 innovation measure.

(3) An application under paragraph (1) must be made no later than 31st March 2026 and must include the following information—

(a) the measure description;

(b) a qualitative assessment as to whether the measure is a substantial improvement on comparable measures; and

(4) The Administrator must not approve the application unless—

(a) the assessment provided with the application in accordance with paragraph (3)(b) states that the measure is a substantial improvement on comparable measures; and

(b) the Administrator is satisfied that the measure is a substantial improvement on comparable measures.

(5) Article 34(5) applies for the purposes of paragraph (4).

Publication of information following approval of an innovation measure

36

(1) If the Administrator approves an application under article 33, the Administrator must publish on its website the following information in respect of the measure—

(a) the measure description;

(b) whether the measure has been approved as—

(i) a standard innovation measure; or

(ii) a substantial innovation measure; and

(2) If the Administrator approves an application under article 35, the Administrator must publish on its website the following additional information in respect of the measure—

(a) the approval of the measure as a substantial innovation measure; and

(b) the date on which the application is approved by the Administrator.

Definitions: standard innovation measures and substantial innovation measures

37

For the purposes of this Order—

(a) a standard innovation measure is a measure which—

(i) either—

(aa) falls within a measure description published by the Administrator in accordance with article 36(1)(a); or

(bb) is an ECO3 innovation measure;

(ii) other than in the case of an ECO3 innovation measure—

(aa) is approved as a standard innovation measure; and

(bb) is completed after the date on which the application under article 33 is approved in respect of the measure; and

(iii) if relevant, is completed on or before the date on which an application under article 35 is approved in respect of the measure;

(b) a substantial innovation measure is a measure which—

(i) either—

(aa) falls within a measure description published by the Administrator in accordance with article 36(1)(a); or

(bb) is an ECO3 innovation measure;

(ii) is approved as a substantial innovation measure; and

(iii) is completed—

(aa) if an application under article 35 is approved in respect of the measure, after the date on which the application is approved;

(bb) otherwise, after the date on which the application under article 33 is approved.

PART 7 — Applications relating to data light measures and standard alternative methodology measures

Applications

38

(1) A participant may apply to the Administrator in writing for a measure that the participant intends to promote to be approved as a data light measure or a standard alternative methodology measure.

(2) The application must include—

(a) the following information—

(i) the measure description;

(ii) an explanation of how the measure is expected to achieve annual cost savings;

(iii) a methodology for calculating the annual cost savings of the measure;

(iv) evidence to support the explanation provided under paragraph (ii) and the accuracy of the methodology provided under paragraph (iii);

(v) the standards with which the measure conforms; and

(vi) such other information relating to the measure as the Administrator may require; and

(b) consent to the publication of information provided by the participant to the Administrator in relation to the methodology for calculating the annual cost savings of the measure.

(3) In the case of a measure that the participant intends to promote to be approved as a data light measure, the application must be made no later than 31st March 2026.

Approval as a data light measure or standard alternative methodology measure

39

(1) On receiving an application under article 38, the Administrator must decide whether to—

(a) approve the measure as a data light measure;

(b) approve the measure as a standard alternative methodology measure; or

(2) The Administrator must not approve a measure as a data light measure or a standard alternative methodology measure unless it is satisfied that—

(a) the measure description stated in the application is accurate and contains sufficient detail to distinguish the measure from other measures commonly available on the market in Great Britain;

(b) the Standard Assessment Procedure does not provide a methodology for calculating the annual cost savings of the measure;

(d) the standards stated in the application in accordance with article 38(2)(a)(v) include provisions designed to ensure the safety and efficacy of the measure on its installation; and

(e) the measure is not—

(i) a district heating connection;

(ii) the installation of equipment for the generation of heat wholly or partly from coal, biofuel, oil or liquefied petroleum gas;

(iii) the installation of equipment for the generation of heat wholly or mainly from a non-renewable source; or

(iv) a repair.

(3) The Administrator may only approve a measure as a standard alternative methodology if it is satisfied that—

(a) the measure results in a reduction in the cost of heating domestic premises to 21 degrees Celsius in the main living areas and 18 degrees Celsius in all other areas;

(b) the measure is—

(i) a type of measure listed in Table A.1, A.2 or A.3 in Annex A to PAS 2030:2023; or

(ii) a certified product under MCS; and

(c) the evidence included in the application is sufficient to enable a methodology for calculating the annual cost savings of the measure to be established under Appendix Q of the Standard Assessment Procedure.

(4) The Administrator may only approve a measure as a data light measure if—

(a) it is satisfied that—

(i) the measure is reasonably expected to result in a reduction in the cost of heating domestic premises to 21 degrees Celsius in the main living areas and 18 degrees Celsius in all other areas; and

(ii) the measure is certified, by a person accredited to ISO/IEC 17065:2012, as conforming to the standards stated in the application in accordance with article 38(2)(a)(v); and

(b) the threshold in paragraph (3) is not met.

(5) In this article, “the Standard Assessment Procedure” means—

(a) SAP2012, and

(b) SAP10.2.

Further applications: standard alternative methodology measures

40

(1) A participant may apply to the Administrator in writing for a measure which has been approved as a data light measure to be approved as a standard alternative methodology measure.

(2) An application under paragraph (1) must include the information and consent referred to in article 38(2).

(3) The Administrator may only approve the application if it is satisfied that the threshold in article 39(3) is met.

Publication of information

41

(1) If the Administrator approves an application under article 38, the Administrator must publish on its website the following information in respect of the measure—

(a) the measure description;

(b) whether the measure has been approved as—

(i) a data light measure; or

(ii) a standard alternative methodology measure; and

(2) If the Administrator approves an application under article 40, the Administrator must publish on its website the following additional information in respect of the measure—

(a) the approval of the measure as a standard alternative methodology measure; and

(b) the date on which the application is approved by the Administrator.

Definitions: data light measure and standard alternative methodology measure

42

For the purposes of this Order—

(a) a data light measure is a measure which—

(i) falls within a measure description published by the Administrator in accordance with article 41(1)(a);

(ii) is approved as a data light measure; and

(iii) is completed—

(aa) after the date on which the application under article 38 is approved in respect of the measure; and

(bb) if relevant, on or before the date on which an application under article 40 is approved in respect of the measure;

(b) a standard alternative methodology measure is a measure which—

(i) falls within a measure description published by the Administrator in accordance with article 41(1)(a);

(ii) is approved as a standard alternative methodology measure; and

(iii) is completed—

(aa) if an application under article 40 is approved in respect of the measure, after the date on which the application is approved;

(bb) otherwise, after the date on which the application under article 38 is approved.

PART 8 — Notification of Completed Measures

Notification requirements for completed measures

43

A measure is notified to the Administrator in accordance with this article if the notification—

(a) is made, in writing, by the participant that promoted the measure;

(b) is made after the measure is completed;

(ca) indicates that the notification is made under this article;

(cb) is not withdrawn by a notification made under article 44A; and

(d) includes such other information relating to the measure as the Administrator may require.

Deadline for notification of completed measures

44

(1) For the purposes of article 43, a notification of a measure is made on time if it is received by the Administrator—

(a) on or before the original deadline, which is—

(i) in the case of a measure completed before the end of the first month following the month in which the commencement date occurs, the end of the second month following the month in which the commencement date occurs;

(ii) in the case of a measure completed after the end of the first month following the month in which the commencement date occurs, the end of the first month following the month in which the measure was completed;

(b) following an application under paragraph (4) which has been accepted by the Administrator, on or before the date specified by the Administrator under paragraph (6)(a); or

(c) in the case of a measure falling within the 5% notification threshold for the participant (“the notifying participant”), before the earlier of—

(i) the end of the fourth month after the month in which the measure was completed; and

(ii) the end of March 2027.

(2) For the purposes of paragraph (1)(c), a measure falls within the 5% notification threshold for the notifying participant if—

(a) the measure is completed on or after the commencement date;

(b) the measure is notified to the Administrator after the original deadline; and

(F – G) / H

(3) In paragraph (2)—

“F” is the number of measures (also counting the measure being notified) which are—completed in the same month as the measure being notified; andnotified after the original deadline by—the notifying participant; orany other participant that is a member of the same group as the notifying participant;

“G” is the number of measures which are—completed in the same month as the measure being notified;the subject of an application under paragraph (4) which is accepted by the Administrator; andnotified, after the original deadline and on or before the date specified by the Administrator under paragraph (6)(a), by—the notifying participant; orany other participant that is a member of the same group as the notifying participant;

“H” is the greater of 1 and the number of measures which are—completed in the same month as the measure being notified; andnotified within the original deadline by—the notifying participant; orany other participant that is a member of the same group as the notifying participant.

(4) A participant may apply before the end of February 2027 to the Administrator in writing for a measure to be notified after the original deadline.

(5) An application under paragraph (4) must include—

(a) details of why the participant is seeking an extension of time to notify the measure; and

(b) such other information relating to the measure as the Administrator may require.

(6) Following receipt of an application under paragraph (4), the Administrator must—

(a) accept the application and specify a date, as it thinks fit but falling after the original deadline and before 1st April 2027, for the notification of the measure; or

(b) reject the application.

(7) In this article, “original deadline” has the meaning given in paragraph (1)(a).

PART 9 — Surplus actions

Surplus actions

45

(1) This article applies where the Administrator has determined under article 36 of the 2018 Order that a relevant supplier has met its ECO3 total home-heating cost reduction obligation.

(2) Where this article applies, the relevant supplier may apply to the Administrator in writing on or before 31st June 2023 for an ECO3 qualifying action to be recognised as a surplus action.

(3) The application must give details of the ECO3 qualifying action which the relevant supplier considers constitutes a surplus action.

(4) The Administrator must recognise an ECO3 qualifying action as a surplus action if it is satisfied that—

(a) the ECO3 qualifying action was promoted by the relevant supplier, or treated as promoted by the relevant supplier for the purposes of the 2018 Order (see article 34(6) of the 2018 Order);

(b) the ECO3 qualifying action was not required by the relevant supplier to meet any of its obligations under the 2018 Order;

(i) a repair;

(ii) a demonstration action;

(iii) the installation of equipment for the generation of heat wholly or partly from biofuel, oil or liquefied petroleum gas; or

(iv) the installation of a connection to a district heating system that delivers heat generated wholly or partly from biofuel, oil or liquefied petroleum gas; and

(d) recognition of the ECO3 qualifying action as a surplus action would not cause the sum of the ECO3 cost savings attributable to the ECO3 qualifying actions promoted by the relevant supplier and recognised by the Administrator as surplus actions under this Part to exceed 10% of the relevant supplier’s ECO3 total home-heating cost reduction obligation.

(5) In this article—

“ECO3 total home-heating cost reduction obligation” means, in relation to a relevant supplier, the relevant supplier’s total home-heating cost reduction obligation within the meaning of the 2018 Order (see article 2 of that Order);

“relevant supplier” means a licence-holder on whom a home-heating cost reduction obligation was imposed under the 2018 Order.

PART 10 — Scores

CHAPTER 1 — Overview

Part 10: interpretation

46

In this Part—

“adjusted cost savings” means, in relation to a data light measure or a standard alternative methodology measure, the adjusted cost savings calculated in accordance with article 75(2)(b);

“basic heating repair or replacement measure” means a qualifying action that is— the repair of— an efficient boiler; an efficient heating system; a renewable heating system; or equipment for the generation of heat wholly or partly from biofuel, oil or liquefied petroleum gas, but is not the repair of an electric storage heater or heating controls; the replacement of an efficient boiler with another efficient boiler; or the replacement of an efficient heating system, other than an electric storage heater, with another efficient heating system of the same kind;

“building fabric repair allowance” means, in relation to a participant, the amount equal to 0.5% of the participant’s total home-heating cost reduction obligation;

“building fabric repair expenditure”— in connection with an ECO4 project has the meaning given in article 62; in connection with a qualifying action has the meaning given in article 74(3) and (4);

“building fabric repair increase”— in relation to an ECO4 project has the meaning given in article 55(3); in relation to a qualifying action has the meaning given in article 66;

“capped heating repair measure” means a qualifying action that is— the repair of an efficient boiler; the repair of equipment for the generation of heat wholly or partly from biofuel, oil or liquefied petroleum gas; or the repair of an efficient electric storage heater;

“capped heating replacement measure” means a qualifying action that is— the replacement of an efficient boiler with another efficient boiler; the replacement of an efficient heating system with another efficient heating system of the same kind, other than where the efficient heating system being replaced is— a district heating connection; or a renewable heating system;

“data light measure allowance” means, in relation to a participant, the number calculated as the participant’s data light measure allowance under article 48 (see articles 71(3) and (4) and 77(2) which provide that this is the maximum number of qualifying actions promoted by the participant which are data light measures of the same data light measure description and in relation to which the annual cost savings may be counted towards the achievement of the participant’s total home-heating cost reduction obligation)⁵⁷;

“data light measure description” means, in relation to a data light measure, the measure description published by the Administrator in respect of the data light measure under article 41(1)(a);

“determined cost savings” means— in relation to an ECO4 project that meets the requirements of article 49, the annual cost savings of the project determined in accordance with article 53(2)(b); in relation to a basic heating repair or replacement measure, the annual cost savings of the qualifying action determined in accordance with article 67(3); in relation to— the repair of an efficient electric storage heater; or the replacement of an efficient electric storage heater with another efficient electric storage heater, the annual cost savings of the qualifying action determined in accordance with article 68(3); in relation to a data light measure or a standard alternative methodology measure not falling within paragraph (b) or (c), the annual cost savings of the qualifying action determined in accordance with article 75(2)(c); in relation to a DHC alternative methodology measure, the annual cost savings of the qualifying action determined in accordance with the alternative methodology approved by the Administrator under article 70(5); in relation to a surplus action or an ECO3 interim delivery action, the annual cost savings of the qualifying action determined in accordance with article 78(2); in relation to a qualifying action not falling within paragraphs (b) to (f), the annual cost savings of the qualifying action determined in accordance with article 76(2)(c);

“DHCalt” is, in relation to a DHC alternative methodology measure, the determined cost savings for the qualifying action;

“DHC alternative methodology measure” means a qualifying action which is the installation of a district heating connection in respect of which the Administrator has approved an alternative methodology under article 70(5);

“DHCstandard” is, in relation to a DHC alternative methodology measure, the annual cost savings of the qualifying action determined in accordance with article 76(2)(c);

“energy cost rating equations” means the equations set out in chapter 13 of the Standard Assessment Procedure;

“exempted ECO4 project” means an ECO4 project that meets condition B in article 50(3);

“exempted project allowance” means, in relation to a participant, the number calculated as the participant’s exempted project allowance under article 48 (see article 50(1)(b) and (5) which provide that this is the maximum number of ECO4 projects promoted by the participant that may meet the minimum requirement for energy efficiency improvement in that article by virtue of meeting condition B in that article);

“full project score” means the score given to an ECO4 project that meets the requirements of article 49;

“general innovation allowance” means, in relation to a participant, the amount equal to 10% of the participant’s total home-heating cost reduction obligation;

“heating repair allowance” means, in relation to a participant, the number calculated as the participant’s heating repair allowance under article 48 (see articles 67(3) and 68(3) which provide that this is the maximum number of ECO3 interim delivery actions and ECO4 projects promoted by the participant which are, or which contain, a capped heating repair measure in relation to which the annual cost savings of the capped heating repair measure may be counted towards the achievement of the participant’s total home-heating cost reduction obligation);

“heating replacement allowance” means, in relation to a participant, the number calculated as the participant’s heating replacement allowance under article 48 (see articles 67(3) and 68(3) which provide that this is the maximum number of surplus actions, ECO3 interim delivery actions and ECO4 projects promoted by the participant which are, or which contain, a capped heating replacement measure in relation to which the annual cost savings of the capped heating replacement measure may be counted towards the achievement of the participant’s total home-heating cost reduction obligation);

“innovation measure uplift”, in relation to an innovation measure, is the amount calculated in accordance with article 58(4);

“partial project score” means the score given to a qualifying action which is part of an ECO4 project that does not meet the requirements of article 49;

“positive score” means a score which is greater than zero;

“post-project energy efficiency assessment” means, in relation to an ECO4 project, a SAP assessment or an RdSAP assessment performed after the completion of the project;

“project innovation uplift” has the meaning given in article 55(3) (see the definition of “IMP” in that article);

“uplift eligible innovation measure” has the meaning given in article 60(2).

Calculating allowances and giving a score to an ECO4 project or to a qualifying action

47

(1) To determine whether a participant has achieved its total home-heating cost reduction obligation, the Administrator must—

(a) calculate the participant’s data light measure allowance, exempted project allowance, heating repair allowance and heating replacement allowance, in accordance with article 48;

(b) give a score to each ECO4 project that meets the requirements of article 49 (see article 53 in relation to the calculation of the score); and

(i) is part of an ECO4 project that does not meet the requirements of article 49 (see whichever is relevant of articles 67 to 72 in relation to the calculation of the score);

(ii) is an in-fill measure (see article 77 in relation to the calculation of the score); or

(iii) is a surplus action or an ECO3 interim delivery action (see article 78 in relation to the calculation of the score).

(2) The Administrator may give a score to each ECO4 project and to each qualifying action in such order as it thinks fit.

(3) The Administrator must notify a participant of—

(a) its data light measure allowance, exempted project allowance, heating repair allowance and heating replacement allowance; and

(b) the score it has given to an ECO4 project or qualifying action promoted by the participant.

(4) The Administrator must comply with paragraphs (1) and (3) in the period beginning with 1st April 2027 and ending with 30th June 2027.

(5) In this Part, references—

(a) to a participant are to the participant that promoted the ECO4 project or qualifying action in question;

(b) to domestic premises are to the domestic premises at which the qualifying actions forming part of the ECO4 project in question are installed, or at which the qualifying action in question is installed;

(c) to the ECO4 project in question are to the ECO4 project for which it is being determined whether the project meets the requirements of article 49, or for which a score is being calculated;

(d) to the qualifying action in question are to the qualifying action for which a score is being calculated.

Calculation of data light measure, exempted project, heating repair and heating replacement allowances

48

(1) The Administrator must calculate a participant’s data light measure allowance, exempted project allowance, heating repair allowance and heating replacement allowance in accordance with the following formula—

(Ht / £224.3 million) x A, with the result expressed as the nearest integer, rounding 0.5 up to the next integer.

(2) In paragraph (1)—

(a) “A” is the value given for the allowance in the following table—

Allowance	Value
Data light measure allowance	5,000 data light measures.
Exempted project allowance	7,500 ECO4 projects.
Heating repair allowance	20,000 ECO3 interim delivery actions or ECO4 projects.
Heating replacement allowance	20,000 surplus actions, ECO3 interim delivery actions or ECO4 projects.

(b) “Ht” is the participant’s total home-heating cost reduction obligation.

CHAPTER 2 — Requirements for a full project score

Requirements for a full project score: overview

49

(1) An ECO4 project meets the requirements of this article if the Administrator is satisfied that—

(a) the project meets the minimum requirement for energy efficiency improvement in article 50;

(b) the project meets the requirement concerning the post-project energy efficiency assessment in paragraph (3); and

(c) the only changes made to the domestic premises between the pre-project energy efficiency assessment and the post-project energy efficiency assessment which would increase the SAP rating of the premises, as determined pursuant to those assessments, are the qualifying actions in the ECO4 project.

(2) Paragraph (1)(b) and (c) do not apply to an ECO4 project which consists of one or more data light measures only.

(3) An ECO4 project meets the requirement concerning the post-project energy efficiency assessment if—

(a) where the project consists of a district heating connection only or a district heating connection and one or more novel data light measures only—

(i) a SAP assessment is performed after the completion of the project for the purpose of calculating the SAP rating of the premises using the same version of the Standard Assessment Procedure as the pre-project energy efficiency assessment; and

(ii) an energy performance certificate based on the SAP assessment is issued;

(b) in any other case, an RdSAP assessment is performed after the completion of the project for the purpose of calculating the SAP rating of the premises.

(4) In paragraph (3), references to a “district heating connection” do not include a connection to a district heating system that uses a shared ground loop.

ECO4 projects: minimum requirement for energy efficiency improvement

50

(1) An ECO4 project meets the minimum requirement for energy efficiency improvement in this article if it meets—

(a) condition A;

(b) where the participant’s exempted project allowance is not exhausted, condition B; or

(2) Condition A is met if the Administrator is satisfied, in relation to the domestic premises, that—

(a) if the pre-project SAP band is band D or E, the post-project SAP band is band A, B or C;

(b) if the pre-project SAP band is band F or G, the post-project SAP band is band A, B, C or D.

(3) Condition B is met if—

(a) the pre-project SAP band for the domestic premises is band E, F or G; and

(b) the Administrator is satisfied that—

(i) the ECO4 project could not meet condition A because—

(aa) to do so would require the installation of one or more measures which attract an exemption under Part 11; or

(bb) there is no combination of ECO4 eligible measures that would have enabled the project to meet condition A; and

(ii) as compared to the measures in the ECO4 project, no other combination of ECO4 eligible measures, excluding those attracting an exemption under Part 11, would have resulted in a larger increase in the SAP rating for the premises.

(4) Condition C is met if, in the case of domestic premises that have a pre-project SAP band of E, F or G, the Administrator is satisfied that neither condition A nor condition B could be met because there has been a change in the people who are occupying the premises.

(5) For the purposes of paragraph (1)(b), a participant’s exempted project allowance is not exhausted if X is less than the participant’s exempted project allowance, where “X” is the number of ECO4 projects promoted by the participant—

(a) which meet condition B in paragraph (3); and

(b) for which the Administrator has given a positive score under article 47(1)(b) before the ECO4 project in question.

(6) In this article, “post-project SAP band” has the meaning given in article 51.

Determination of the post-project SAP band

51

(1) For the purposes of article 50, “post-project SAP band” means the SAP band which is to be determined for the domestic premises by the Administrator—

(a) either—

(i) pursuant to any post-project energy efficiency assessment referred to in article 49(3);

(ii) where the ECO4 project includes the installation of a data light measure or a standard alternative methodology measure to which paragraph (2) applies, by using the energy cost rating equations and the adjusted cost savings for the data light measure or standard alternative methodology measure to calculate the change in the SAP rating of the premises following the installation of the measure; and

(iii) where the ECO4 project includes the installation of a DHC alternative methodology measure, by using the energy cost rating equations and the result of the following formula to calculate the change in the SAP rating of the premises following the installation of the measure—

DHCalt – DHCstandard; or

(b) where the ECO4 project consists solely of data light measures to which paragraph (2) does not apply, by treating the post-project SAP band as being the same SAP band as the pre-project SAP band.

(2) This paragraph applies to a data light measure or a standard alternative methodology measure which—

(a) in the case of a data light measure, is within the participant’s data light measure allowance; and

(b) is not—

(i) the replacement of an efficient boiler with another efficient boiler; or

(ii) the replacement of an efficient heating system with another efficient heating system of the same kind.

(3) For the purpose of paragraph (2)(a), the Administrator is to determine whether a data light measure is within a participant’s data light measure allowance in accordance with article 52.

Determination whether a measure is within the data light measure allowance

52

For the purposes of article 51, a data light measure is only within a participant’s data light measure allowance if X is less than the participant’s data light measure allowance, where “X” is the sum of—

(a) the number of data light measures which are—

(i) qualifying actions forming part of an ECO4 project promoted by the participant for which the Administrator has given a positive score under article 47(1)(b) before the ECO4 project in question; and

(ii) of the same data light measure description as the data light measure in question;

(b) the number of data light measures which are—

(i) qualifying actions promoted by the participant for which the Administrator has given a positive score under article 47(1)(c)(i) or (ii) before the ECO4 project in question; and

(ii) of the same data light measure description as the data light measure in question.

CHAPTER 3 — Calculating full project scores

Full project score: overview and determination of post-project SAP rating

53

(1) This article applies to an ECO4 project that meets the requirements of article 49.

(2) Where this article applies—

(a) the Administrator must determine the SAP rating of the domestic premises in accordance with paragraph (3) (“the post-project SAP rating”);

(b) the Administrator must then determine the annual cost savings of the ECO4 project in accordance with a methodology published in accordance with article 54; and

(3) The post-project SAP rating is to be determined—

(a) either—

(i) pursuant to any post-project energy efficiency assessment referred to in article 49(3);

(ii) where the ECO4 project includes the installation of a data light measure or a standard alternative methodology measure to which article 51(2) applies, by using the energy cost rating equations and the adjusted cost savings for the data light measure or standard alternative methodology measure to calculate the change in the SAP rating of the domestic premises following the installation of the measure; and

(iii) where the ECO4 project includes the installation of a DHC alternative methodology measure, by using the energy cost rating equations and the result of the following formula to calculate the change in the SAP rating of the premises following the installation of the measure—

DHCalt – DHCstandard; or

(b) where the ECO4 project consists solely of data light measures to which article 51(2) does not apply, by treating the post-project SAP rating as being the same SAP rating as the pre-project SAP rating.

Publication of a methodology for determining ECO4 project cost savings

54

(1) The Administrator must publish, on its website, a methodology for the purpose of determining the annual cost savings of an ECO4 project that meets the requirements of article 49.

(2) Under the methodology published by the Administrator the determination of the annual cost savings must—

(a) be based on the difference between the pre-project SAP rating and the post-project SAP rating; and

(b) where the ECO4 project includes an item of work—

(i) to which article 62(2) applies; and

(ii) which is the extraction of cavity wall insulation or loft insulation,

take into account any impact that work would have on the SAP rating of the domestic premises as compared to the pre-project SAP rating.

(3) The methodology must provide that, if the post-project SAP rating is more than 90, it is to be treated as if it were 90.

(4) Before publishing a methodology under this article, the Administrator must have regard to the Standard Assessment Procedure and the Reduced Data Standard Assessment Procedure.

(5) In this article, “post-project SAP rating” has the same meaning as in article 53(2)(a).

(6) On or after 31 July 2025, the Administrator may revise any methodology published under this article and must publish the revised methodology on its website.

(7) Any revised methodology published under this article by the Administrator for the purpose of determining the annual cost savings of an ECO4 project pursuant to SAP10.2 is applicable only to measures that are completed on or after the date the methodology has been published.

Full project score: calculation

55

(1) This article applies for the purpose of calculating the full project score to be given to an ECO4 project that meets the requirements of article 49.

(2) The full project score is the result of the following formula—

KP x (1+ F) x (C + OGR) + BH + ESH + IMP + BFR – L.

(3) In paragraph (2)—

“KP” is the determined cost savings for the ECO4 project;

“F” is— 0.2, where the floor area of the domestic premises is less than 73m²; 0.1, where the floor area of the premises is between 73m² and 97m² (both inclusive); 0, where the floor area of the premises is greater than 97m²;

“C” is— 1.1, where at least one qualifying action in the ECO4 project meets the condition in article 21 (measures accompanied by a declaration from a relevant authority or participant and Secretary of State approval); otherwise, 1;

“OGR” is— 0.35, where the domestic premises are— off-gas premises; and in a rural area in Scotland or Wales; otherwise, 0;

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