The Competition and Markets Authority (CMA) published its findings report on consumer protection in the green heating and insulation sector in May 2023, concluding that consumers buying low-carbon technologies can face difficulties and that the standards landscape is complex and confusing1. The report is cited in later responses to consultations and in written evidence to the Energy Security and Net Zero Committee1.
The CMA also found examples of unsubstantiated claims, greenwashing and limited pricing information by manufacturers and installers in the insulation and green heating sectors5. It published best practice principles that standards bodies in the sector should follow, and followed the findings report with an update on the standards landscape in February 20243.
The CMA expressed concern about an "emerging gap in consumer protections for Able to Pay households" and called on the government to conduct a review of the current landscape and consider the introduction of mandatory Alternative Dispute Resolution (ADR)3. ADR is a process provided by a third party that enables traders and consumers to resolve a dispute without going to court3. The government consulted in 2020 on a proposal to make ADR mandatory in the home improvements sector, which would include home heating and insulation3.
"The CMA also found examples of unsubstantiated claims, greenwashing and limited pricing information by manufacturers and installers in the insulation and green heating sectors"
A consumer looking for third party assurance when getting insulation or a new heating system installed is faced with a variety of certification schemes, accreditation schemes, certification bodies, review sites, consumer codes, trade associations and directories, according to Which?3. Installers will often belong to several schemes or organisations, some specific to insulation or low carbon heating and others more general3. Since 2020, insulation installers working on Energy Company Obligation or government-funded work must belong to the TrustMark certification scheme, and installers of clean heating and microgeneration must belong to the Microgeneration Certification Scheme (MCS)3. Householders self-funding work do not have the same protections3.
| Measure | Requirement |
|---|---|
| Insulation, ECO or government-funded work | TrustMark certification3 |
| Clean heating and microgeneration, ECO or government-funded work | MCS certification3 |
| Self-funded work | No equivalent requirement reported3 |
Why it matters for households
The CMA's findings bear on how a household chooses who installs insulation or a heat pump, and what recourse exists if the work goes wrong. For a home's energy independence, the practical effect is that the quality of an installation, rather than the product alone, determines whether a property ends up with efficient running costs and a heating system that works as expected3. Which? research found that 42% of consumers find it hard to know what experience or qualifications to look for or check when looking for a trader in the home improvements sector, and 55% say they find it hard to trust trader information, including traders' own claims and customer reviews3. The CMA's concern about the gap for households paying for work themselves sits alongside its finding that the standards landscape is complex and confusing1. The TrustMark and HIES comparison sets out how installer protection schemes differ.
What happens next
The CMA published an update on the standards landscape in February 20243. The government has said it intends to review the requirements, known as the conditions of authorisation, that a scheme provider must meet to be authorised as a competent person scheme3. A 2019 cross-industry licensing task force led by the Federation of Master Builders was established to make the case for mandatory licensing in the construction sector3. No date has been reported for a government decision on mandatory ADR or on mandatory certification for installers working on self-funded jobs3.
Sources5 cited
- A new fuel poverty strategy for Northern Ireland - Energy Saving Trust, energysavingtrust.org.uk
- Low carbon heating in residential buildings - Energy Saving Trust, energysavingtrust.org.uk
- gm-6c70913b-aba5-43dc-b9aa-b8c979427a67-sustainable-heating-installer-policy-report-v5.pdf, media.product.which.co.uk
- FINAL ESNZ Committee - Heating our Homes - Written Evidence - Which?, media.product.which.co.uk
- gm-b62b4aa1-0569-4eb4-8e7d-502e8c75ce23-insulation-report.pdf, media.product.which.co.uk