Tens of thousands of households in the UK that underwent energy efficiency upgrades through a government initiative are now facing significant issues like dampness and mold, according to a recent report by the National Audit Office. The flaws identified in the scheme have raised concerns about immediate health and safety risks for some homes, with potential cases of suspected fraud amounting to £165 million.
The Energy Company Obligation (ECO) program, aimed at combating fuel poverty and reducing carbon emissions by mandating energy companies to sponsor home improvements such as insulation, has come under scrutiny due to widespread problems in the quality of installations. The NAO study highlighted serious faults in a large number of homes, with a majority of those having external wall insulation requiring urgent attention.
The report attributed these issues to various factors, including inadequate workforce skills, subcontracting to uncertified individuals or firms, ambiguity in standards, and shortcuts taken during installation processes. Despite efforts to enhance consumer protection through the involvement of TrustMark in 2021, significant installation quality concerns were only brought to light in October of the same year.
Additionally, Ofgem estimated a substantial number of false claims for ECO installations, potentially resulting in millions of pounds falsely claimed from energy suppliers. Gareth Davies, the head of NAO, emphasized the need for immediate action to rectify the poor-quality installations and prevent future occurrences of fraud.
Simon Francis from the End Fuel Poverty Coalition expressed dismay over the infiltration of unscrupulous operators in the scheme, leading to distress for affected households and eroding trust in initiatives addressing housing issues. He stressed the importance of ensuring high-quality standards, trained installers, independent inspections, and prompt remediation in the government’s Warm Homes Plan.
Minister for Energy Consumers, Martin McCluskey, acknowledged the systemic failures in the installation processes and reassured the public of the government’s commitment to rectify the situation and streamline the home improvement process for consumers. Comprehensive reforms are underway to establish clear accountability and swift resolution for any installation-related issues, ensuring consumer protection and efficient service delivery.