Energy suppliers are at the heart of the main home energy-efficiency schemes
— not as a favour, but because the law requires it. If you have been
offered free or subsidised insulation or heating through
ECO4 or a similar grant, an obligated supplier is
usually the organisation ultimately funding it. Understanding that role
explains why the offer exists and what you are entitled to expect.
Obligated suppliers under ECO
The Energy Company Obligation (ECO) places a legal duty on larger domestic
energy suppliers to deliver energy-efficiency and heating measures to eligible
households. Under the current scheme, ECO4, this is focused on low-income,
fuel-poor and vulnerable households through what is known as the Home Heating
Cost Reduction Obligation. In practice, this means an obligated supplier:
-
Funds the measures – the cost of qualifying work is
met to help lower your bills and warm your home. -
Meets a target – each obligated supplier must deliver
a set amount of energy savings, overseen by Ofgem. -
Works through registered trades – the installation
itself is carried out by TrustMark-registered, appropriately certified
installers.
What it means for you
You do not have to be a customer of the funding supplier to benefit, and you
should never be asked to hand over money for a measure that a scheme is meant
to fund. The obligation is monitored by Ofgem, so if an offer feels wrong
— unexpected upfront charges, pressure to sign quickly, or vague
credentials — that is a reason to check before agreeing.
Suppliers also carry wider duties toward customers in difficulty, separate
from these schemes. For your rights with your own supplier and help with
bills, see our energy and water section, and for
the schemes themselves our grants overview.