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Energy Company Obligation 2022-26 (ECO4) Guidance: New Measures and Products

OFGEM·guidance·low·2 Apr 2026·source document

Summary

Ofgem updates ECO4 guidance on New Measures and Products routes (Innovation Measure, Standard Alternative Methodology, Data Light Measure) to version 3.0. Following amendments to the ECO4 Order in 2026, IM and DLM applications closed on 31 March 2026. This is administrative housekeeping for a supplier obligation scheme in its final years.

Why it matters

ECO is a redistributive levy on energy suppliers passed through to all bill-payers. It does not change market structure, grid access, or generation economics. The closure of innovation routes signals the scheme winding down toward its 2026 end date.

Key facts

  • ECO4 runs 2022-2026
  • Innovation Measure and Data Light Measure applications closed 31 March 2026
  • Guidance updated to version 3.0

Timeline

Effective date31 Mar 2026

Areas affected

suppliersretail market
Memo

Energy Company Obligation 2022-26 (ECO4) Guidance: New Measures and Products | Ofgem Please enable JavaScript in your web browser to get the best experience. BETA This site is currently in BETA. Help us improve by giving us your feedback . Close alert: Energy Company Obligation 2022-26 (ECO4) Guidance: New Measures and Products Publication date: 7 August 2025 Scheme name: ECO Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn ECO4 includes incentives designed to support the delivery of innovative measures that can provide further energy efficiency improvements, or that offer additional benefits, via the ‘New Measures and Products’ (NMAP) routes. The ECO4 Guidance: New Measures and Products (NMAP) provides guidance on the Innovation Measure, Standard Alternative Methodology, and Data light Measure routes. Following the amendments made to the ECO4 Order in 2026, IM and DLM applications will not be accepted after 31 March 2026. Applications received before this date will be considered. This guidance is additional to the ECO4 Guidance: Supplier Administration and ECO4 Guidance: Delivery and should be read in conjunction with those guidance documents. More information can be found on the ECO4 Innovation: New Measures and Products page. Main document Energy Company Obligation (ECO4) Guidance: New Measures and Products (NMAP) V3.0 [PDF, 841.64KB] Subsidiary documents Energy Company Obligation (ECO4): Summary of updates in the ECO4 Guidance: New Measures and Products (NMAP) V3.0 [PDF, 239.42KB] Print this page Share the page Share on Facebook Share on Twitter Share on LinkedIn Close