The latest statistics from Ofgem reveal how UK energy suppliers are performing against their ECO4 targets.
There have been a total of 100,708 Energy Company Obligation 4 projects that have been submitted so far but which energy companies are leading the pack in terms of delivery?
In this article, we delve into the statistics to see who is on target to meet their obligation and who needs to get to work.
And if you’re eager to know exactly how many UK energy suppliers are meeting their ECO4 obligations, skip straight to the bottom of this article to find that juicy detail.
| Obligation/Cap | Target Type | Unit | Target | Approved % | Notified % | Total % |
|---|---|---|---|---|---|---|
| Home Heating Cost Reduction Obligation | Obligation | £bn | 0.11 | 18.90% | 24.83% | 43.73% |
| Solid Wall Minimum Requirement | Obligation | Number of households | 45,005 | 35.84% | 29.93% | 65.77% |
| EFG Minimum Requirement | Obligation | £bn | 0.078 | 21.22% | 33.19% | 54.40% |
| ECO4 Flex | Cap | £bn | 0.056 | 4.54% | 12.46% | 17.00% |
Key Highlights from the Ofgem Statistics (as at 7 May 2024) of Phases 1 and 2 of ECO4:
100,708 Energy Company Obligation 4 (ECO4) projects have been submitted so far.
EDF Energy stands out with 62.79% of its Energy Company Obligation targets achieved.
- British Gas has delivered 47.57% of its Energy Company Obligation targets.
- E.ON Energy and Ovo Energy both show consistent performance, with 47.69% and 47.00% of their targets met, respectively.
- Octopus Energy has achieved 31.11% of its obligation, indicating room for growth, but also significant progress in notified measures.
The ECO4 scheme, which commenced on July 27, 2022, aims to improve energy efficiency across the UK by setting stringent targets for suppliers.
| Supplier | Target (£bn) | Approved % | Notified % | Total % |
|---|---|---|---|---|
| 0.026 | 22.74% | 24.83% | 47.57% |
| 0.00015 | 14.32% | 26.05% | 40.37% |
| 0.015 | 35.26% | 27.53% | 62.79% |
| 0.00044 | 11.31% | 18.46% | 29.77% |
| 0.018 | 14.55% | 33.15% | 47.69% |
| 0.00037 | 0.00% | 0.00% | 0.00% |
| 0.022 | 12.19% | 18.92% | 31.11% |
| 0.014 | 23.66% | 23.34% | 47.00% |
| 0.01 | 7.66% | 29.83% | 37.49% |
| 0.0014 | 9.14% | 28.89% | 38.03% |
| 0.002 | 13.24% | 14.00% | 27.25% |
| 0.003 | 0.00% | 0.00% | 0.00% |
| Total | 0.11 | 18.90% | 24.83% | 43.73% |
Phases of ECO4
The phases of ECO4 are:
- Phase 1: 27 July 2022 to 31 March 2023
- Phase 2: 1 April 2023 to 31 March 2024
- Phase 3: 1 April 2024 to 31 March 2025
- Phase 4: 1 April 2025 to 31 March 2026
Statistics at a Glance:
- Home Heating Cost Reduction Obligation:
Overall progress (phases 1 and 2) at 43.73%
Note: These stats are for phases 1 and 2 only, so if we aggregate that over the whole of the scheme that includes phases 1, 2, 3 and 4 the progress sits at only 21.87% (all phases).
- Solid Wall Minimum Requirement: 65.77% of the target met
- EFG Minimum Requirement: Achieved 54.40% of the goal
- ECO4 Flex Cap: Only 17% progress towards the cap of 50%
Progress towards the Obligation by Supplier (Phases 1 and 2)
While some companies are on track, others have significant work ahead to meet their obligations.
Shortfall in Expenditure (Phases 1 and 2)
There is still a lot of funding to be spent by all energy suppliers.
Amount Spent by Energy Company (Phases 1 and 2)
The figures show that British Gas is leading the way in terms of expenditure.
How are Local Authorities performing through Flexible Energy?
The ECO4 phase has simplified the ‘Flexible Eligibility’ rules. The individual schemes that we saw in ECO3 complicated the rules, particularly for councils.
In ECO4, the eligibility rules were defined in the legislation and have widened the eligibility group to include households that qualify through:
- Having a health condition made worse by living in a cold home
- Being vulnerable to the effects of living in a cold home
- Having a low-income (under £31K per household)
In ECO3, only 25% of the obligation could be from Flexible Energy applicants, but in ECO4 suppliers can deliver up to 50% of their obligation through ‘Flexible Energy’ or ‘FLEX’.
So, you may be wondering how councils are helping vulnerable, low-income and health-related applications in the ECO4 Flex scheme? These 7 May 2024 statistics suggest there is a lot of work to be done, with 33% of makeup not being achieved. Two years into the current scheme, many councils have yet to publish a Statement of Intent (see our naughty and nice list for details), which is preventing their vulnerable residents from accessing the grants.
Statistics at a Glance for the ECO4 Flex Cap: Only 17.00% progress towards the cap of 50%
Finally, to respond to the question, ‘How many UK Energy Suppliers are meeting their obligation?’, the answer is ‘none’… at the moment!
The latest Ofgem statistics show it crucial for all stakeholders to stay engaged and proactive in delivering the obligation.
We urge eligible applicants to apply now before energy companies meet their obligation, ensuring you benefit from the existing support before it runs out.
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