CIH responds to NAO report on the Energy Company Obligation

The National Audit Office (NAO) has published its report into failed energy efficiency installations under the Energy Company Obligation (ECO4) and Great British Insulation Scheme (GBIS).

The report follows an initial acknowledgement by the government in January, and a subsequent statement in July, that failures had been identified in the scheme. 

The report confirms the widespread installation of poor-quality solid wall insulation through the Energy Company Obligation.

It finds that: 

• Ninety-eight per cent of external wall insulation installed under ECO4 and GBIS have major issues that require remediation
• Twenty-nine per cent of internal wall insulation installed under the same schemes also have major issues that require remediation
• Original installers are liable for the cost of remediation, but not all installers are fully complying with the remediation process 
• There is no timetable yet for the completion of all remediation works.

The NAO report also found that there were some issues with installations undertaken through the Social Housing Decarbonisation Fund and Home Upgrade Grant, but that they are not at the same scale.

Separately, DESNZ has published a statistical audit of the schemes that suggests there are not systemic issues with either scheme. 

The government has published a Written Ministerial Statement acknowledging the findings of the report and has set out its intention to reform the consumer protection system. We are expecting more detail when the Warm Homes Plan is published.

'Devastating consequences'

Responding to the report, Gavin Smart, CIH chief executive, said: “A safe, comfortable home is the bedrock for good health, wellbeing, and dignity. However, today’s report exposes systemic failures in the delivery of insulation measures that should make homes warmer and healthier, but have instead led to devastating consequences for some residents and communities, through no fault of their own. 

"We welcome the action government has taken thus far to identify and remediate affected homes. The experiences of residents and communities must be at the centre of these efforts, but remediation will only be the first step towards restoring trust and repairing the harm that has been caused.

"Alongside this, we also need to see a protracted and immediate emphasis on enhancing oversight, accountability, governance, and quality assurance in the Energy Company Obligation, and whatever follows it, as well as an improved system of consumer protection and redress. 

"The government’s Warm Homes Plan will mark the next, necessary step in this process. CIH will continue to work with the government, our members, and partners to ensure that warmer homes are delivered safely, and to the highest standards, both now and in the future.”