The Electricity and Gas (Energy Company Obligation) (Amendment) (Specified Period) Order 2026
This Statutory Instrument, made on March 25th, 2026, amends the preceding Electricity and Gas (Energy Company Obligation) Order 2022 by extending the overall period of the Energy Company Obligation (ECO) scheme by nine months, shifting the end date for the home-heating cost reduction target from March 31st, 2026, to December 31st, 2026.
The Order also adjusts several associated deadlines for remaining procedural steps, applications, and measure approvals under the ECO scheme across England, Wales, and Scotland, ensuring consistency with the newly defined final date.
Arguments For
Extending the overall scheme period until 31st December 2026 provides energy companies and stakeholders more time to meet the energy efficiency and home heating cost reduction targets.
Realigning deadlines for remaining procedural and application steps ensures a smooth transition and allows sufficient time for complex measures to be processed following the extended end date of the primary obligation period.
Maintaining the scheme duration provides continued support for individuals seeking to reduce the cost of heating their homes through energy efficiency improvements, especially during a potentially volatile energy market period.
The legislative basis (Gas Act 1986, Electricity Act 1989, Utilities Act 2000) confirms the government's authority to regulate energy supplier obligations for social and environmental outcomes.
Arguments Against
Extending the specified period might suggest an underestimation of the initial targets' feasibility or delays in implementation planning by obligated suppliers.
Pushing deadlines into 2027 for procedural steps could potentially introduce administrative burden or complexity for stakeholders who were planning according to the original 2026 timeframe.
Limiting the application deadline for certain crucial applications (Articles 33, 35, 38) to 31st March 2026, while extending the overall period, creates a sharp cutoff point that might disadvantage some late-stage planning.
The legislative action requires agreement from the Scottish Ministers, indicating potential complexity in coordinating energy policy across the UK concerning Scotland, despite the stated extension covering England, Wales, and Scotland.
STATUTORY INSTRUMENTS
2026 No. 361
ELECTRICITY GAS
The Electricity and Gas (Energy Company Obligation) (Amendment) (Specified Period) Order 2026
This identifies the document as a Statutory Instrument from 2026, numbered 361, concerning the sectors of Electricity and Gas.
The title confirms this instrument amends the rules governing the Energy Company Obligation (ECO).
Made - - - -
25th March 2026
Coming into force in accordance with article 1(2)
The Secretary of State formally created this Order on March 25th, 2026.
The Order becomes legally effective the day immediately following the date it was officially made.
The Secretary of State makes this Order in exercise of the powers conferred by section 33BD of the Gas Act 1986( 1 ), section 41B of the Electricity Act 1989( 2 ) and section 103A of the Utilities Act 2000( 3 ), with the agreement of the Scottish Ministers( 4 ).
The Secretary of State is enacting this amendment using specific authority granted under sections of the Gas Act 1986, the Electricity Act 1989, and the Utilities Act 2000.
This action required the formal consent of the Scottish Ministers, acknowledging the impact on devolved matters.
The Secretary of State has consulted the Gas and Electricity Markets Authority, the National Association of Citizens Advice Bureaux, Consumer Scotland, electricity distributors, electricity suppliers, gas transporters, gas suppliers and such other persons as the Secretary of State considers appropriate.
Before making the Order, the Secretary of State fulfilled a requirement to consult various key stakeholders.
These included the energy market regulator (Ofgem, represented by the Gas and Electricity Markets Authority), consumer bodies like Citizens Advice Bureaux and Consumer Scotland, and all segments of the energy industry, including suppliers and distributors for both gas and electricity.
A draft of this instrument has been laid before, and approved by a resolution of, each House of Parliament pursuant to section 33BC(12) of the Gas Act 1986( 5 ), as applied by section 33BD(4) of that Act, section 41A(12) of the Electricity Act 1989( 6 ), as applied by section 41B(4) of that Act and section 103A(6) of the Utilities Act 2000( 7 ).
Parliamentary approval was necessary for this legislation to proceed.
A draft version was presented to, and formally approved by a vote in, both the House of Commons and the House of Lords, fulfilling specific affirmative resolution procedures laid out in the relevant energy legislation.
( 1 ) 1986 c. 44. Section 33BD was inserted by section 68 of the Energy Act 2011 (c. 16).
( 2 ) 1989 c. 29. Section 41B was inserted by section 69 of the Energy Act 2011.
( 3 ) 2000 c. 27. Section 103A was inserted by section 70 of the Energy Act 2011 and amended by section 60 of the Scotland Act 2016 (c. 11) and S.I. 2014/631 and 2022/34.
( 4 ) Notwithstanding section 33BDA of the Gas Act 1986 and section 41BA of the Electricity Act 1989, as inserted by section 59 of the Scotland Act 2016, the Secretary of State may, by virtue of section 33BDA(10) of the Gas Act 1986 and section 41BA(10) of the Electricity Act 1989, make provision under section 33BD of the Gas Act 1986 and section 41B of the Electricity Act 1989 respectively for the purposes of obligations imposed under those sections in relation to Scotland, with the agreement of the Scottish Ministers.
( 5 ) Section 33BC was inserted by section 99 of the Utilities Act 2000 and relevant amendments were made by section 15 of, and the Schedule to, the Climate Change and Sustainable Energy Act 2006 (c. 19), Schedule 8 to the Climate Change Act 2008 (c. 27), section 66 of the Energy Act 2011 and S.I. 2014/631 and 2022/34.
( 6 ) Section 41A was inserted by section 70 of the Utilities Act 2000 and relevant amendments were made by section 16 of, and the Schedule to, the Climate Change and Sustainable Energy Act 2006, Schedule 8 to the Climate Change Act 2008, section 67 of, and Schedule 1 to, the Energy Act 2011 and S.I. 2014/631 and 2022/34.
( 7 ) Section 103A was inserted by section 70 of the Energy Act 2011, and amended by section 60 of the Scotland Act 2016 (c. 11) and S.I. 2014/631 and 2022/34.
This section provides the necessary legal citations for the powers used to create the Order, referencing specific insertion dates and amendments to the primary energy acts (Gas 1986, Electricity 1989, Utilities 2000) that establish the ECO structure.
Footnote (4) specifically clarifies the mechanism allowing the UK Secretary of State to legislate on Scottish matters concerning energy obligations, provided the Scottish Ministers agree.
Citation, commencement and extent
- -(1) This Order may be cited as the Electricity and Gas (Energy Company Obligation) (Amendment) (Specified Period) Order 2026.
- (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.
Article 1 confirms the short legal title of the instrument.
It takes effect the day following its making date, March 25th, 2026.
The geographical scope of this amendment applies across the whole of Great Britain: England, Wales, and Scotland.
Amendment of the Electricity and Gas (Energy Company Obligation) Order 2022
- -(1) The Electricity and Gas (Energy Company Obligation) Order 2022( 8 ) is amended as follows.
Article 2 introduces the substance of the legal changes by stating that the provisions of the 2022 Order, which established the ECO scheme, are now being modified.
(2) In article 2(1), in the definition of 'phase', in paragraph (d) (phase 4), for 'the twelve months ending with 31st March 2026' substitute 'the twenty-one months ending with 31st December 2026'.
This directly changes the definition of 'phase 4' within the primary obligation order.
It extends the duration covered by this phase from a twelve-month period ending March 31st, 2026, to a longer twenty-one-month period ending December 31st, 2026.
- (3) In article 3(1), for '31st March 2026' substitute '31st December 2026'.
- (4) In article 10(1), for '31st March 2026' substitute '31st December 2026'.
The Order replaces the deadline of March 31st, 2026, with December 31st, 2026, in two separate articles (Article 3(1) and Article 10(1)).
This likely sets the new overall completion date for the ECO obligation period.
- (5) In article 12(1)(c), for '1st April 2026' substitute '1st January 2027'.
A specific deadline related to Article 12(1)(c) is shifted forward.
What was due by April 1st, 2026, is now due by January 1st, 2027.
- (6) In article 24(6)(b), for '1st July 2026' substitute '1st April 2027'.
- (7) In article 31(1A)(b) for '1st July 2026' substitute '1st April 2027'.
Two separate deadlines concerning procedural matters in Articles 24 and 31 are extended.
Deadlines previously set for July 1st, 2026, are now extended to April 1st, 2027.
(8) In article 33(2), after 'The application must' insert 'be made no later than 31st March 2026 and must'.
This inserts a hard cut-off date into Article 33(2).
Any application referred to in that sub-article must now be submitted no later than March 31st, 2026.
(9) In article 35(3), after 'under paragraph (1) must' insert 'be made no later than 31st March 2026 and must'.
Similar to the previous change, this imposes a fixed application deadline of March 31st, 2026, for certain requirements stipulated under Article 35(3).
(10) In article 38, after paragraph (2) insert-
'(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.'.
A new requirement is added to Article 38, specifying that applications for measures intended to be approved as 'data light measures' must also be submitted by the deadline of March 31st, 2026.
(11) In article 44-
- (a) in paragraph (1)(c)(ii), for 'June 2026' substitute 'March 2027';
- (b) in paragraph (4), for 'May 2026' substitute 'February 2027';
- (c) in paragraph (6)(a), for '1st July 2026' substitute '1st April 2027'.
This article, dealing with obligations within the scheme, sees several deadlines pushed back to early 2027.
Deadlines previously falling in June 2026 are moved to March 2027, May 2026 to February 2027, and July 1st, 2026, to April 1st, 2027.
- (12) In article 44A(2)(b), for '30th June 2026' substitute '31st March 2027'.
A deadline within Article 44A(2)(b) is extended, moving the required date from June 30th, 2026, to March 31st, 2027.
(13) In article 47(4), for '1st July 2026 and ending with 30th September 2026' substitute '1st April 2027 and ending with 30th June 2027'.
A specific reporting or measurement period noted in Article 47(4) is shifted by nine months.
The period previously running from July 1st to September 30th, 2026, now runs from April 1st to June 30th, 2027.
(14) In article 80(2)(a), for '30th June 2026' substitute '31st March 2027'.
The date specified in Article 80(2)(a) is changed from June 30th, 2026, to March 31st, 2027, extending this particular administrative deadline.
- (15) In article 82-
- (a) in paragraph (2), for '1st October 2026' substitute '1st July 2027';
- (b) in paragraph (4)(b), for 'April 2026' substitute 'January 2027';
- (c) in paragraph (5) for '1st October 2026' substitute '1st July 2027'.
Article 82 sees significant date changes, extending various targets or reporting points.
Deadlines previously set for October 1st, 2026, are moved to July 1st, 2027, and a date concerning April 2026 is moved to January 2027.
(16) In article 84(2), for '1st July 2026' substitute '1st April 2027'.
The date mentioned in Article 84(2) is postponed from July 1st, 2026, to April 1st, 2027.
25th March 2026
Martin McCluskey Parliamentary Under Secretary of State Department for Energy Security and Net Zero
The Order is signed and dated by the relevant government official, Martin McCluskey, the Parliamentary Under Secretary of State within the Department for Energy Security and Net Zero.
EXPLANATORY NOTE
(This note is not part of the Order)
This Order applies in Great Britain. It extends by nine months the specified period of the Energy Company Obligation scheme for the promotion of measures for reducing the cost to individuals of heating their homes. The overall home-heating cost reduction target will end on 31st December 2026 instead of the date originally specified in Electricity and Gas (Energy Company Obligation) Order 2022 (S.I. 2022/875) ('the 2022 Order'). This Order extends by nine months deadlines for remaining procedural steps specified in the 2022 Order. The Order specifies 31st March 2026 as a deadline for certain applications under articles 33, 35 and 38 of the 2022 Order (but not for an application for a measure that the participant intends to promote to be approved as a standard alternative methodology measure).
The Explanatory Note confirms the Order applies to Great Britain and its primary purpose is to extend the ECO scheme's main obligation period for home heating cost reduction by nine months, resetting the end date to December 31st, 2026.
It also details the corresponding nine-month extension for procedural deadlines, while noting a specific firm deadline of March 31st, 2026, for several key types of applications under the 2022 Order.
An impact assessment has not been produced for this instrument, as no, or no significant, impact on the private or voluntary sector is foreseen.
The government asserts that a full regulatory impact assessment was unnecessary because the changes made by this amendment are expected to have minimal or no significant financial or operational effect on private businesses or voluntary organizations.
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