Source · Select Committees · Energy Security and Net Zero Committee
Recommendation 31
31
Accepted in Part
Seriously improve the Energy Company Obligation policy to clarify installer accountability for poor quality retrofit work.
Recommendation
We found it incredible that the Residential Property Surveyors Association has reported that around 250,000 homes could be un-mortgageable due to spray foam insulation and that the accountability to remedy things remains unclear. We recommend that the Energy Company Obligation, as a policy to put responsibility on installers and commissioners for poor quality work, needs serious improvement. (Recommendation, Paragraph 162) 65
Government Response Summary
The government acknowledges the need for fundamental reform in quality assurance and consumer redress, stating that work is underway, and plans for root and branch reform will be set out in the Warm Homes Plan, including considering the future role of energy company obligations post-2026.
Government Response
Accepted in Part
HM Government
Accepted in Part
The government has worked with industry and inspection protocols were published to allow the proper assessment of spray foam installations. Recent indications are that most mortgage lenders no longer have blanket policies on spray foam insulation. While the department cannot comment on the decisions made by individual lenders, the presence of spray foam should not automatically prevent lending and decisions should be made on a case-by-case basis following a survey. The government recognises that the system of quality assurance and consumer redress that we inherited needs fundamental reform. This will involve rapidly changing the landscape of regulation, spanning from how installers working in people’s homes are certified and monitored, to where homeowners turn to for rapid action and enforcement if things go wrong. This work is already underway, with existing regulation being tightened, but we will set out plans for root and branch reform as part of the Warm Homes Plan. We are committed to meeting fuel poverty and wider Net Zero targets, and we are currently considering what policy mix will best achieve that including what role energy company obligations should play post-2026. We will ensure that lessons learned from the current Energy Company Obligation and Great British Insulation schemes form part of these considerations and that any successor schemes are confirmed to industry once decisions have been made.