Tens of thousands of residences in the UK that underwent energy efficiency upgrades through a government initiative are experiencing significant issues like dampness and mold, as per a report from the National Audit Office. The problems observed include immediate health and safety concerns, with potential false claims totaling up to £165 million.
The Energy Company Obligation (ECO) program, aimed at alleviating fuel poverty and curbing carbon emissions by mandating energy providers to sponsor home improvements such as insulation, has come under scrutiny for its flawed implementation. The NAO’s investigation exposed major flaws in the scheme, with a high percentage of homes facing severe issues requiring urgent rectification.
The deficiencies in the ECO scheme are attributed to factors like unskilled labor, subcontracting to uncertified entities, ambiguity in industry standards, and shortcuts taken during installation processes. Despite efforts to enhance consumer protection by introducing TrustMark in 2021, shortcomings were only identified last October.
Regulatory bodies have estimated a significant number of fraudulent claims linked to ECO installations, potentially amounting to millions of pounds. Gareth Davies of NAO emphasized the urgency for thorough repairs on affected properties and systemic reforms to prevent future lapses in quality and integrity.
Simon Francis of the End Fuel Poverty Coalition highlighted the infiltration of substandard practitioners into the system, resulting in a crisis for affected households and eroding public confidence in energy efficiency endeavors. He stressed the necessity for stringent standards, skilled workforce, independent inspections, and swift resolution mechanisms.
Minister for Energy Consumers Martin McCluskey acknowledged the systemic failures in solid wall insulation installations and the government’s efforts to rectify the inherited deficiencies. He reassured consumers of a streamlined and accountable process for home improvements, emphasizing the commitment to safeguarding households and ensuring prompt resolution of any installation issues.