The government is taking bold steps to restore families' trust in home upgrades, a crucial move in the drive for clean power and energy efficiency. The announcement on Wednesday, June 17th, outlines a comprehensive strategy to address the issues plaguing the retrofit industry and the energy market. This initiative aims to simplify the process for consumers, offering end-to-end support, quality checks, and clear routes to redress, ensuring that families can upgrade their homes with confidence and cut their bills.
One of the key measures is the establishment of the Installation Assurance Authority (IAA), which will provide stronger oversight of the retrofit industry. This includes a transparent public register of government-approved installers, a single advice and support service throughout the upgrade process, and powers to hold installers and delivery partners accountable. The IAA will also introduce a data-backed system to identify risks and installer performance issues early on, ensuring that problems are addressed promptly.
The government is also strengthening the Energy Ombudsman to provide faster and fairer compensation in the energy market. This means that if companies fail to resolve issues directly, customers can escalate their complaints to the Ombudsman within a shorter time frame, reducing overall waiting times by a month to a maximum of 10 weeks. The Ombudsman will have the authority to fine companies that do not comply with their rulings, and new measures will clarify the route for consumers to go through the courts as a last resort.
The government has also increased the cost of repairs covered by the Installation Assurance Authority for Energy Company Obligation 4 (ECO4) and Great British Insulation Scheme (GBIS) solid wall insulation from £20,000 to £25,000. This includes cases where the original installer has gone out of business. Additionally, the National Energy Foundation will 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 canceled, fraudulent, or missing.
These reforms come in response to the widespread issues with poor-quality insulation under inherited government schemes. The government has already set up a comprehensive on-site audit program, remediated over 60% of the identified issues, and improved the quality assurance and consumer protection systems. By addressing these problems, the government aims to restore families' trust in the retrofit industry and ensure that work is completed to a high standard.
The proposed reforms have received positive feedback from various industry experts and advisory panel members. Adam Scorer, CEO of National Energy Action, welcomes the focus on vulnerable households and the commitment to right-first-time installations. Gillian Cooper, Director of Energy at Citizens Advice, emphasizes the importance of impartial advice and redress in building consumer confidence. Charlotte Lee, CEO of Heat Pump Association UK, highlights the need for high standards and clear accountability in the transition to low-carbon heating.
Brian Berry, Chief Executive of the Federation of Master Builders, supports the government's efforts to improve consumer protection and increase oversight of trades and occupations. Lynne Sullivan, OBE, Chair of National Retrofit Hub, appreciates the comprehensive analysis and the government's willingness to play a pivotal role in improving the customer experience. Anthony Pygram, a member of the Committee on Fuel Poverty, stresses the importance of trust and fair compensation for those struggling with energy costs.
In conclusion, the government's comprehensive approach to restoring trust in home upgrades is a significant step forward. By simplifying the process, strengthening consumer protections, and addressing the issues with the retrofit industry, the government is paving the way for a more sustainable and affordable energy future for families across the country.
