Highlights

  • EARNZ reports ECO scheme revenue contribution was below 1% of annual turnover.
  • The Group states current operations and growth plans do not depend on ECO.
  • Policy focus remains on clarity from the Government’s proposed Warm Homes Plan.

EARNZ plc (LSE:EARN) an energy services company focused on decarbonisation-linked activities, provided an update following the UK Chancellor’s Autumn Budget presented to Parliament on 26 November 2025. The Budget included confirmation that the Energy Company Obligation (ECO) scheme will be terminated ahead of its previously scheduled end date in March 2026.

The ECO programme has historically supported domestic energy efficiency measures through obligated energy suppliers. Its conclusion forms part of broader policy changes announced during the Budget, prompting sector participants to assess any potential exposure or operational impact.

Limited Exposure to ECO Scheme

EARNZ clarified that its business model is not materially dependent on the ECO scheme. Revenue generated from activities linked to the programme accounts for less than 1% of the Group’s annual turnover. Based on this limited contribution, the Company indicated that the decision to terminate ECO is not expected to affect its ongoing operations or future growth plans.

The Group’s activities continue to be aligned with wider energy efficiency and housing-related services, separate from the ECO framework. As a result, the policy change does not alter the current direction of the business or its near- to medium-term outlook.

Operational and Strategic Positioning

According to the update, EARNZ’s existing projects and pipeline are structured independently of ECO funding mechanisms. The Company stated that its broader growth strategy remains intact and is underpinned by demand for services associated with improving housing stock and energy efficiency.

The Group also noted that it maintains engagement with relevant policy developments, particularly those connected to residential energy efficiency and housing quality initiatives. This includes monitoring Government announcements that could shape future programmes or funding frameworks within the sector.

Focus on Upcoming Policy Developments

Attention is now directed towards the Government’s anticipated Warm Homes Plan, which is expected to provide further detail on future energy efficiency initiatives and housing-related measures. EARNZ indicated that it is following these developments closely to understand the policy landscape once further information is released.

Share Price Snapshot

EARN was trading 12.99% higher at GBX 4.35 per share as of 27 November 2025.