‘A Broken System’: The UK’s Plan to Reform Retrofitting

The UK Government has today unveiled its plans to overhaul the country’s retrofit industry.

The announcement follows several years of complaints from property owners about poor workmanship on retrofitting projects that were carried out under past government schemes.

Ministers say the reforms are designed to give homeowners the confidence to upgrade their properties without fear of being left out of pocket.

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

Much of the blame has been placed on inherited scheme design rather than current policy, according to ministers.

What the new oversight body will do

At the centre of the proposals is a new consumer protection service which would maintain a public register of government-approved installers.

The service would also offer a single point of advice and support spanning the entire upgrade process.

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

A new 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.

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.

He also added that the reforms are intended to rebalance power between consumers and installers.

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

The UK’s revamped Energy Ombudsman

An important part of the government’s plan is giving new powers to 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 service will also become more efficient, with DESNZ confirming that it will cut waiting times by a month, to a maximum of 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."

"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."

Repair costs and lingering questions

Alongside the consultation, the Installation Assurance Authority has raised the cap on repair costs it will cover for defective wall insulation, increasing 25% to £25,000 (US$33,499).

This will apply even if the installer has since gone out of business, giving homeowners a far better chance of receiving compensation.

Government figures suggest more than 60% of identified insulation issues have already been remediated through an existing audit programme, though these reforms will see that number shoot up.

The reaction from the industry has been positive so far.

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.

Elsewhere, Gillian Cooper, the Director of Energy at Citizens Advice, 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.