Guidance

Domestic energy tariff reductions 2026: guidance for energy suppliers

Guidance for energy suppliers on how to apply discounts to domestic tariffs from 1 April 2026, related to the RO to Exchequer scheme and closure of the ECO and GBIS schemes.

From:
Department for Energy Security and Net Zero
Published
18 March 2026
Last updated
28 April 2026 — See all updates

Applies to England, Scotland and Wales

Documents

RO to Exchequer and ECO costs schemes: guidance for suppliers (PDF)

PDF, 436469 KB, 2933 pages

RO to Exchequer and ECO costs schemes: guidance for suppliers (HTML)

HTML

Details

In the 2025 Autumn Budget the government announced that it will take an average of £150 off the cost of household energy bills.

This guidance explains how domestic energy suppliers should implement the cost reduction, through policy changes which include:

  • the introduction of the Renewables Obligation (RO) to Exchequer Scheme
  • the ending of funding for the Energy Company Obligation (ECO4) Scheme and Great British Insulation Scheme (GBIS)

Ministerial direction

See the related Domestic energy tariff reductions 2026: ministerial direction.

Updates to this page

Published 18 March 2026
Last updated 28 April 2026 href="#full-history">+ show all updates

  1. Updated the RO to Exchequer and ECO costs schemes: guidance for suppliers to include additional information on unapplied discount adjustments, the monitoring process for tariffs not subject to the price cap, and the compliance process.

  2. First published.

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