ECO4 extension proposal: protecting households and jobs
24 September 2025
At the end of August 2025, the Government launched a consultation to extend the Energy Company Obligation (ECO4) scheme, originally set to end in Spring 2026. At AgilityEco, we support the intention to continue the scheme, but believe the programme’s design could be improved.
This week, we’ve submitted an open letter and discussion paper outlining our concerns and recommendations to Rt. Hon. Ed Miliband MP, Secretary of State for Energy Security and Net Zero, and Martin McCluskey MP, Parliamentary Under-Secretary of State for Energy Consumers. This letter has been co-signed by over 60 organisations, including the Installation Assurance Authority Federation, the Sustainable Energy Association, and the Energy Efficiency Infrastructure Group.
Our concerns with the current proposal
As currently drafted, the extension risks falling short of the Government’s stated objectives. Which were to:
- Maintain support for households
- Strengthen consumer protections
- Provide supply chain certainty
- Enable cost recovery for ECO4 overspending
Without targeted improvements, the extension could undermine value for money for bill payers, reduce the number of households receiving upgrades and place unnecessary strain on the supply chain at a critical time.
Our recommendations for a successful extension
Our paper outlines key risks and offers constructive solutions based on evidence from past scheme transitions. To ensure the extension meets its objectives, we’re urging the Government to:
- Publish details of the successor scheme as soon as possible.
- Provide clear, cost-effective carry-over mechanisms for suppliers.
- Require that existing targets be delivered by March 2026.
- Commit to a legislative timetable that provides confidence for investment and delivery.
Working collaboratively
We would like to thank all organisations who have added their names to our letter and strengthened our call for a fair, effective, and scalable ECO4 programme.
Most importantly, we welcome open dialogue with the Government and stand ready to work together on solutions that will deliver for households, the supply chain, and the UK’s net zero goals.
