Source · National Audit Office

Energy efficiency installations under the Energy Company Obligation

Weak controls and oversight blamed for faulty home installations under energy efficiency scheme, affecting tens of thousands of households.

Published: 14 Oct 2025 Recommendations: 4 Type: Value for Money NAO confirmed: 3 Department: Department for Energy Security and Net Zero

Dept: Department for Energy Security and Net Zero Topics: Climate change and net zeroEnergy and environmentHousehold energy nao.org.uk →

Recommendations

4 items

No response position recorded.

The indexed recommendations do not yet have a recorded response position. This is separate from evidence of implementation. This report was published 14 October 2025.

Recommendation 1

Addressee: Department for Energy Security and Net Zero · Source location: Page 14, paragraph 26, point a

We recommend that DESNZ takes clear responsibility for its consumer levy funded schemes. It should publish an updated accounting officer system statement with its 2025?26 annual report and accounts to include how it gains assurance over the outcomes of departmental policy funded by consumers as well as the Exchequer.

Response position: No response position recorded

Delivery: In progress · Confirmed by NAO

Recommendation 2

Addressee: Department for Energy Security and Net Zero · Source location: Page 14, paragraph 26, point b

We recommend that DESNZ clarifies its approach to remediation for ECO alongside its Warm Homes Plan, by starting to monitor and report how long remediation of affected projects takes, setting out a timetable for identifying and remediating other properties affected by poor-quality installations of external and internal wall insulation under ECO, and setting out the process for how households can get the work remediated, including in cases where they are struggling to engage the original installer.

Response position: No response position recorded

Delivery: No implementation status recorded

Recommendation 3

Addressee: Department for Energy Security and Net Zero · Source location: Page 14, paragraph 26, point c

We recommend that DESNZ reforms the system of consumer protection and quality assurance for retrofit schemes in response to the lessons arising from this report and summarised in Figure 1. It should set out an implementation plan for this reform alongside its upcoming Warm Homes Plan.

Response position: No response position recorded

Delivery: In progress · Confirmed by NAO

Recommendation 4

Addressee: Department for Energy Security and Net Zero · Source location: Page 14, paragraph 26, point d

We recommend that DESNZ reports annually on a statistically robust estimate of the level of fraud and non?compliance in each of its retrofit schemes, starting in its 2025-26 annual report and accounts, and report how it is acting to reduce these levels.

Response position: No response position recorded

Delivery: In progress · Q3 2027-28 · Confirmed by NAO