Tens of thousands of households in the UK that underwent energy efficiency upgrades through a government program are now facing significant issues such as dampness and mold, according to a recent report by the National Audit Office. The report highlighted that some of these problems pose immediate health and safety risks.
The Energy Company Obligation (ECO) scheme, aimed at addressing fuel poverty and reducing carbon emissions by mandating energy companies to finance home improvements like insulation, has come under scrutiny. The report revealed potential fraudulent activities, with up to 16,500 false claims amounting to £165 million. Concerns have been raised about substandard work by inexperienced contractors taking advantage of the system.
The NAO’s investigation exposed widespread deficiencies in the ECO program, with a large percentage of homes, particularly those with external wall insulation, experiencing major issues requiring urgent attention. Poor workmanship, lack of skilled workers, conflicting standards, and shortcuts in the installation process have been identified as contributing factors.
Efforts to address these issues include the implementation of consumer protection measures by the Department for Energy Security and Net Zero in 2021, with the appointment of TrustMark. However, shortcomings in the oversight and quality control system were only flagged in late 2021.
Regulatory body Ofgem estimated that a significant number of businesses had submitted false claims for ECO installations, potentially defrauding energy suppliers of millions of pounds. Gareth Davies, head of the NAO, emphasized the importance of rectifying the situation promptly and ensuring that such lapses do not recur.
Simon Francis from the End Fuel Poverty Coalition expressed disappointment in the system’s failure to prevent substandard work, calling for enhanced quality assurance measures and swift corrective actions. Minister for Energy Consumers Martin McCluskey acknowledged the systemic flaws in the installation process and pledged reforms to streamline procedures and ensure accountability for any errors.
The government has vowed to address the shortcomings in the system to protect consumers and uphold quality standards in future energy efficiency initiatives.