The UK Reforms Retrofit Oversight to Support Net Zero Goals

A new consumer protection framework for home energy upgrades could address complaints about faulty insulation work carried out under past schemes.

The UK Government announced reforms today that centre on a public register of approved installers and a service with the power to ban firms that fail to meet standards.

Ministers say the changes are designed to restore homeowner confidence after several years of reports about poor workmanship on retrofitting projects funded by government programmes.

New oversight body announced

According to ministers, much of the blame for past problems has been placed on inherited scheme design rather than current policy.

The reforms aim to prevent similar issues arising in future government-backed energy efficiency initiatives.

The proposed consumer protection service would maintain a public register of government-approved installers and offer a single point of advice covering the entire upgrade process.

A data-led system that can flag installer performance issues has also been proposed.

Government officials hope this will replace what they describe as a fragmented and confusing system for consumers.

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The service would have the power to ban installers from government schemes if they fail to meet certain standards.

Among the most common problems were solid wall insulation installed under the Energy Company Obligation 4 and Great British Insulation Scheme.

Martin McCluskey, the UK's Minister for Energy Consumers, says the previous system left people without proper recourse.

"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," he explains.

Energy Ombudsman gets new powers

The reforms include new powers for the Energy Ombudsman, an independent watchdog that investigates unresolved issues between citizens and companies in the energy sector.

The government's new scheme will allow the Ombudsman to fine any companies that fail to comply with its rulings.

The Department for Energy Security and Net Zero (DESNZ) confirmed that the service will cut waiting times by a month, bringing the maximum to 10 weeks.

A clearer route through the courts will also be set out as a last resort for unresolved cases.

Ed Dodman, the Chief Ombudsman for the watchdog, welcomes the move but acknowledges that there is plenty of work to do.

"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," he says.

Martin continues: "We are building a system that puts consumers first – holding companies to account while introducing better compensation and protections for customers."

Repair costs and industry reaction

Alongside the consultation, the Installation Assurance Authority has raised the cap on repair costs it will cover for defective wall insulation, increasing by 25% to £25,000 (US$33,500).

This will apply even if the installer has since gone out of business.

According to government figures, more than 60% of identified insulation issues have already been remediated through an existing audit programme. These reforms could increase that number.

Adam Scorer, CEO of National Energy Action, says that the proposal's empowerment of lower-income households is a step in the right direction.

"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," he says.

Gillian Cooper, the Director of Energy at Citizens Advice, meanwhile, says that clearer routes to redress have been long overdue.

"Providing routes to impartial advice and redress where needed will give consumers confidence to adopt vital retrofit measures," she says.

Ed adds: "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."