AM route and have a separate score that is compatible with the wider ECO4 scoring
methodology.
1.18 The inclusion of the DLM route alongside the SAM route under the AM pathway will
enable scores to be produced for measures below the data threshold for recognition in
SAP, but with robust enough data to form the basis of an ECO4 score. Further detail on
this route is available in chapter 5.
1.19 Measures delivered under the SAM and DLM routes will not count towards the 10% IM
cap. However, if the measure is subsequently approved as an innovation measure, it
would then count towards the IM cap.
1.20 For DLMs, there is a scheme-wide cap of 5,000 per measure type. Each supplier’s
share of that 5,000 is equivalent to their share of the overall ECO4 target.
1.21 When we refer to measure type, we mean measures which fall under the same
description submitted to and published by Ofgem.
The Purpose of this Guidance Document
1.22 This guidance is predominantly aimed at obligated suppliers, manufacturers and
installers who wish to participate in innovation under the ECO4 scheme.
1.23 The document sets out details of the policy background for IM, SAM and DLM routes
under the ECO4 scheme and provides guidance on:
• Measure Eligibility Criteria for IMs, SAMs and DLMs – the criteria that measures need to
demonstrate to be eligible for inclusion under the scheme;
• Innovation Measures – why the scheme has retained the IM mechanism for innovative
energy efficiency and heating measures, the associated reforms, the new scoring matrix
and uplifts and the criteria under which measures are assessed. This also includes
detail on rewarding obligated suppliers for sponsoring a promoted approved IM
application.
• Standard Alternative Methodologies – why the scheme has retained SAMs as a route to
innovative measure delivery and the criteria under which SAMs will be assessed,
including information on the specific safety, efficacy and installation standards that AMs
need to demonstrate to receive support under ECO4.
• Data Light Measures – why the scheme has introduced the DLM route, the criteria by
which measures will be assessed and information on the specific safety, efficacy and
installation standards that DLMs need to demonstrate to receive support under ECO4.
The Role of Ofgem as Scheme Administrator
1.24 Ofgem is the ECO4 scheme administrator. To allow for expert assessment of a range of
criteria, a Technical Advisory Panel (TAP), appointed by Ofgem, will assess applications
for IMs. The TAP will make a recommendation to Ofgem, who will make the final
decision on the IM application. The main role of the TAP will be to assess proposals and