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<p>The targets for the current iteration of ECO are based on the Home Heating and
Cost Reduction Obligation (HHCRO) powers set out in the Electricity Act 1989, Section
41B, and Gas Act 1986, Section 33BD. This allows Government to set a target for the
promotion of measures for reducing the cost to individuals of heating their homes.
Therefore, measures which do not result in space heating savings are not eligible.</p><p>
</p><p>Under the current scheme, ECO3, 44% of measures delivered were a form of insulation
with the remainder being heating measures, such as replacement boilers, as of January
2021. ECO3 will end in March 2022, however, it was announced in February’s Sustainable
Warmth Strategy that ECO4 will run from April 2022 through to 2026. The value of the
scheme will also increase to £1bn per annum for ECO4. Further details about ECO4,
including the scope of eligible measures, will be consulted on later this year.</p>
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