Action to protect families in the energy market and hold the retrofit industry to account.
- New service to provide stronger oversight of retrofit industry - giving families confidence to upgrade their homes and cut bills
- Reforms will help fix broken system which led to widespread issues with poor-quality insulation under inherited government schemes
- Households to get fairer and faster compensation in the energy market under new measures to strengthen the Ombudsman
Families will be better protected when upgrading their homes, giving them confidence to make improvements and cut their bills.
Ministers are taking action to hold the retrofit industry to account for delivering home upgrades through a new consumer protection service, under proposals announced today (Wednesday 17 June).
Plans being consulted on would create:
- a transparent public register of government approved installers
- a single advice and support service covering the entire time a home is being upgraded
- powers to hold installers and delivery partners to account, including bans from working on government schemes if they don't meet high standards
- a new data-backed system that spots risks and installer performance issues earlier
This will simplify the process for consumers, providing a single point of access offering end-to-end support, quality checks, and routes to redress.
In the past, people have faced a broken and fragmented system when installing energy efficiency measures and been left frustrated and let down when things have gone wrong, with no clear way to resolve issues.
Ministers are therefore acting to ensure issues which resulted in flawed insulation under legacy government schemes are never allowed to happen again.
Consumers will also be supported with faster and fairer compensation in the energy market under new measures to strengthen the Energy Ombudsman, which helps people solve disputes with their energy suppliers.
If companies are not able to resolve issues directly, customers will be able to escalate their complaints to the Ombudsman within a shorter time frame, getting a decision more quickly - cutting overall waiting times by a month, to a maximum of 10 weeks.
The Ombudsman will be empowered to fine companies if they do not comply with their ruling, with new measures set to clarify the route for consumers to go through the courts to hold suppliers to account as a last resort.
Minister for Energy Consumers Martin McCluskey said:
This government inherited a broken system that left too many people in homes damaged by work that lacked clear oversight, without support when things went wrong.
That is why we promised to change that system and today we are setting out how we propose to do that.
We are building a system that puts consumers first - holding companies to account while introducing better compensation and protections for customers.
From today, the Installation Assurance Authority (IAA) will now cover the cost of repairs to Energy Company Obligation 4 (ECO4) and Great British Insulation Scheme (GBIS) solid wall insulation up to £25,000, up from £20,000, where these are within the terms of the original, still-valid guarantee. This includes cases where the original installer has gone bust.
The National Energy Foundation, a domestic energy charity, will also cover the cost of relevant repairs for some homes with defective ECO4 and GBIS solid wall insulation, where the installer has gone out of business and the guarantee was cancelled, fraudulent or missing.
Since identifying issues with poor-quality solid wall insulation installed under ECO4 and GBIS, government has set up a comprehensive on-site audit programme offering audits at no cost to the consumer, remediated more than 60% of the issues identified with audits, worked with Ofgem to create a dedicated call centre for affected households, and improved the quality assurance and consumer protection systems currently in place.
By stamping out bad practice and reforming the broken system inherited by the government, the plans aim to restore families' trust in the retrofit industry and give them confidence that work will be completed to a high standard.
The changes mark the latest step to support families as government accelerates the drive for clean power to protect billpayers from the fossil fuel rollercoaster.
By bringing forward the biggest investment in warm homes in British history - including making plug-in solar available in shops, giving homeowners living in properties heated by oil and LPG £9,000 off the cost of a heat pump, and taking decisive action on delinking electricity prices from international as prices - the government is driving forward with plans to upgrade as many homes as possible to cut bills.
Adam Scorer, CEO, National Energy Action, and Retrofit System Reform Advisory Panel member, said:
Strengthening consumer protections for home upgrades is an essential step toward homes that are more affordable to heat and that make people healthier. I welcome a reform agenda considered through the experiences of more vulnerable households with less market power and who stand to benefit most from government support.
Gillian Cooper, Director of Energy at Citizens Advice, and Retrofit System Reform Advisory Panel member, said:
We welcome the commitment to right-first-time installations and a simpler customer journey. Providing routes to impartial advice and redress where needed will give consumers confidence to adopt vital retrofit measures.
Charlotte Lee, CEO at Heat Pump Association UK, and Retrofit System Reform Advisory Panel member, said:
We welcome these proposals as a positive step towards strengthening consumer protection and building confidence in the transition to low-carbon heating. As the heat pump market continues to grow, it is essential that consumers can rely on high standards, clear accountability and effective support should issues arise.
The proposed reforms have the potential to improve oversight, strengthen quality assurance and create a more joined-up approach to consumer protection across the sector.
Better use of data and clearer delivery obligations should also help identify issues earlier and drive continuous improvement across the supply chain. Consumer trust is fundamental to the successful rollout of heat pumps, and these measures represent an important opportunity to improve customer outcomes while supporting the growth of a high-quality, resilient market.
Brian Berry, Chief Executive of the Federation of Master Builders and Retrofit System Reform Advisory Panel member, said:
The retrofit market is a confusing landscape for both consumers and trades. The government's proposals to improve consumer protection are a welcome step forward most notably the consideration to make more trades and related occupations subject to more government oversight. Greater oversight will offer the best protection to consumers and help drive out incompetent installers.
Lynne Sullivan, OBE, Chair of National Retrofit Hub and Retrofit System Reform Advisory Panel member, said:
The NRH welcomes the comprehensive analysis and scope of the proposed reforms as well as government's willingness to play a pivotal role; clarity of responsibilities is key to improving customer experience of the retrofit journey, and should become the norm for the retrofit market.
Anthony Pygram, member of the Committee on Fuel Poverty, and Retrofit System Reform Advisory Panel member, said:
People who struggle to pay for their energy need to be confident that retrofit measures and their installers are trustworthy and, if things do go wrong, they will not lose out. This consultation is an important step in the right direction.
Ed Dodman, Chief Ombudsman for Energy Ombudsman, said:
The measures announced today by the Department for Energy Security and Net Zero represent a positive step forward in enhancing consumer protections and reinforcing high standards across the energy sector. In an essential market such as energy, it's vital that the right steps continue to be taken to strengthen trust, accountability and outcomes for consumers.
Strengthening the role of Energy Ombudsman and making the process faster will ensure consumers can not only have quicker access to redress but also have the confidence that issues will be resolved effectively.
There is still work to be done, and we look forward to continuing to work collaboratively with government, the regulator, suppliers and stakeholders to ensure the system delivers fair, timely and accessible outcomes for all.
Notes
Homes eligible for free repairs will be contacted by the National Energy Foundation.
Full details of the reform to the Energy Ombudsman can be found here: Fairer, faster redress in the energy market .
