The CMA Call for Information on consumer protection in the green heating and insulation sectors - Which? response

Summary

Which? is committed to supporting consumers in the transition to net zero through the advice and information we provide and by engaging with government and businesses to give a consumer perspective on the changes that are needed.

Green heating and insulation enable consumers to reduce their carbon footprint, cut their energy bills and improve the comfort of their home. However consumers face a number of challenges to installing these products including high up front costs, a lack of reliable information and tailored advice, and difficulties in identifying installers that they can trust. The challenges householders experience can vary significantly depending on their income, the age and type of the property and whether they are a homeowner or tenant. There is also evidence of consumer detriment as a result of poor installations, choice avoidance and difficulty in holding installers to account. In order to support consumers in making the necessary changes to their homes the CMA should consider the following areas:

• Information and advice: For many consumers installing green heating and insulation will be a complex decision. Consumers need good quality independent information and, in some cases, advice tailored to their property. Information about the performance of green heating and insulation should be provided so that homeowners can make an informed choice and assess whether the installation is operating effectively.
• Trust in traders: Which? research found that 55% of consumers said that they find it hard to trust trader information. This can lead to anxiety and consumers putting off work that is needed. Many consumers are likely to find the variety of certification schemes and codes in the green heating and insulation sector confusing and struggle to understand the protections that the schemes offer. The landscape should be reformed to make it easier for consumers to find installers they can trust and all traders should be required to be members of an approved ADR scheme.
• Cost: Which? research has consistently found that cost is the greatest barrier for consumers considering green heating and insulation. There is evidence that there are not enough installers to meet growing demand and this may be increasing prices. The structure of the sector with many sole traders and small companies may also be inhibiting productivity gains. The CMA should consider whether there are barriers that may prevent the market from meeting the government’s commitments in this area.