Tens of thousands of households in the UK that underwent energy efficiency upgrades through a government initiative are now facing serious issues like dampness and mold, as per a recent report by the National Audit Office. The Energy Company Obligation (ECO) program, aimed at addressing fuel poverty and reducing carbon emissions by mandating energy firms to finance measures such as home insulation, has encountered significant challenges.
According to the report, a substantial number of homes, particularly those with external wall insulation, have been found to have major defects, with some posing immediate health and safety risks. The NAO highlighted concerns about poor installation practices, estimating that a large portion of homes with insulation work done under the scheme require rectification due to faulty workmanship.
The report also raised alarms about potential fraud within the program, suggesting that a considerable amount of money, up to £165 million, may have been falsely claimed through the submission of inaccurate information. The issues identified point to systemic failures in the setup and oversight of the ECO initiative.
In response to these findings, the Department for Energy Security and Net Zero (DESNZ) introduced new consumer protection measures in 2021, including the appointment of TrustMark. However, the report indicated that these safeguards failed to detect significant installation quality issues promptly.
Gareth Davies of the NAO emphasized the critical need for DESNZ to ensure affected homes are promptly repaired by businesses while also implementing reforms to prevent similar issues from recurring. The report’s revelations have prompted calls for a comprehensive overhaul of the system to guarantee high-quality installations and effective oversight to regain public trust in energy efficiency initiatives.
The Minister for Energy Consumers, Martin McCluskey, acknowledged the systemic shortcomings revealed in the report and assured that the government is taking decisive steps to rectify the flawed oversight system inherited from the previous administration. The focus is on streamlining the process for consumers, introducing clear accountability measures, and ensuring swift resolution of any installation-related issues to protect households and uphold quality standards.
