The government responded on 17 June 2026 to its consultation on strengthening protections in the energy supply market, the Parliamentary Under-Secretary of State for Energy Security and Net Zero, Martin McCluskey, told the Commons. The response commits to enhancing the powers of the Energy Ombudsman and making it easier for consumers to access support when they have a complaint about their retail supplier1.
McCluskey said the government wants to give the ombudsman stronger powers, including the ability to issue a penalty fee that ends up as compensation for consumers, to enforce decisions and hold suppliers to account1. He also said the complaints process is being shortened and automatic referral to the ombudsman made easier, so that people are "no longer stuck in limbo waiting for their case to be escalated"1. The government set out three principles for reform of consumer protection in October: work should be right first time, simplicity, and swift remediation with a straightforward process for redress1.
"Today we are also responding to our consultation on strengthening protections in the energy supply market, enhancing the powers of the Energy Ombudsman and making it easier for consumers to access support when they have a complaint about their retail supplier."
Separately, the government launched a consultation on consumer protection for home upgrades, seeking views on simplifying what it calls a fragmented landscape and establishing a single, accessible, end-to-end consumer protection service1. McCluskey said this would have powers to enforce better service through contracts holding installers and delivery partners to account, including bans from working on government schemes if they do not meet high standards1.
On the ECO4 and GBIS insulation schemes, McCluskey said the "Find and Fix" programme, launched at the end of last year, has contacted over 10,000 properties and arranged over 5,000 audits1. Where the installer is no longer trading and the guarantee is missing, fraudulent or cancelled, the National Energy Foundation will contact homeowners and arrange remediation of internal and external wall insulation1. The Installation Assurance Authority will now cover the cost of repairs up to £25,000 where these fall within the terms of the original, still-valid IAA guarantee, up from the £20,000 limit previously covered by a valid guarantee1.
| Measure | Detail |
|---|---|
| Find and Fix contacts | Over 10,000 properties contacted |
| Audits arranged | Over 5,000 |
| IAA repair cover | Up to £25,000 under a valid guarantee |
| Previous guarantee limit | £20,000 |
On spray foam, McCluskey said many households have encountered problems when selling their home, and that Nationwide, Lloyds, Santander and Barclays have confirmed they will not take a blanket approach to houses with spray foam1. Independent advice has been published online by the Property Care Association, and a follow-up roundtable with the mortgage sector is planned for later this summer1.
Why it matters for households
For a household with a live complaint against a retail supplier, the practical change is in how a case reaches the ombudsman and what the ombudsman can order. A penalty fee paid as consumer compensation would put money directly in the hands of a wronged customer rather than into a general fund, and easier automatic referral reduces the time a complaint sits with the supplier before it can be escalated. The complaints process and the waiting time before the ombudsman can take a case are the points where these changes would be felt.
For homes with insulation fitted under ECO4 or GBIS, the figures set out remediation routes and a raised repair ceiling. The £25,000 IAA cover applies only where the original guarantee is still valid and the damage falls within its terms; the government says it is still working on solutions for remaining cases and hopes other guarantee providers follow the IAA's lead1. Households whose installer has ceased trading and whose guarantee is missing, fraudulent or cancelled fall to the National Energy Foundation route instead1.
What happens next
The consumer protection consultation for home upgrades is now open, with no closing date given in the statement1. A follow-up roundtable with mortgage lenders on spray foam is planned for later this summer1. The statement gives no timetable for implementing the enhanced ombudsman powers or the automatic referral changes; those dates have not been reported1.
Sources1 cited
- Energy Market: Consumer Protection - Hansard - UK Parliament, hansard.parliament.uk