A report published
by the Competition and Markets Authority (CMA) has highlighted that
people looking to buy ‘green home’ heating technologies – such as solar
panels and heat pumps – can face difficulties and are not always treated
fairly by businesses.
To
meet the UK government’s target for net zero by 2050, more people will
need to fit their homes with insulation and low carbon heating products.
This can be environmentally friendly and can reduce energy bills if
done right.
While
evidence collected by the CMA highlighted that people could have a
positive experience buying green heating and insulation products, it
also raised concerns about its complexity and a lack of information.
The
CMA’s report also highlights examples of potentially misleading sales
claims by some businesses. This could lead people to purchase heating
products which may not be as green as advertised or might put people off
green alternatives altogether, slowing progress to net zero.
The
CMA also found that quality assurance schemes – which play an important
role in the sector – could do more in some areas to protect consumers
better.
The CMA’s report found three key areas of concern:
Information about products is difficult to find and to understand
· People often don’t know where to start to get the information they need.
· Unnecessarily
complicated information risks putting consumers off from buying green
heating products or leading them to install the wrong systems for their
homes.
Not all businesses are acting fairly
· Some businesses may be making misleading claims about the cost saving or environmental benefits of their products.
· Businesses
marketing boilers as ‘Hydrogen-blend’ or ‘Hydrogen-ready’ risk
greenwashing people into thinking these products are more
environmentally friendly than they really are. This is despite these
boilers being technically the same and emitting the same carbon
emissions as standard gas boilers, because hydrogen fuel is not
currently available for home heating.
Quality assurance schemes are not as effective as they can be
· There
are several different quality assurance schemes, which can be confusing
for people to understand. The level and robustness of protections these
schemes give to consumers also varies. Some people might miss out or
have less protection than others especially if something goes wrong.
To help people looking to buy green heating and insulation products, the CMA has published a new consumer guide which can be accessed here
This
sets out key considerations for people at each stage of the buying
process and summarises their rights under consumer protection law.
Alongside
the consumer guide, the CMA has published a set of good practice
principles for quality assurance schemes and will work with scheme
providers to implement these principles, as well as with the UK
governments to help better support and protect consumers in this sector.
George
Lusty, Senior Director for Consumer Protection at the CMA, said: “We
want people to have confidence when they buy green heating technologies
and home insulation. It’s essential they get what they paid for, and
that energy efficiency and sustainability claims are fair and accurate.
“While
many businesses will be operating in the best interests of their
customers, some businesses appear to be misleading people into buying
their products. This needs to stop.
“We will now be exploring these concerns further – including whether to take enforcement action.”
Following
publication of today’s report, the CMA will take forward further work
looking into misleading claims, engaging with businesses, trade bodies
and other key stakeholders. The CMA also intends to produce guidance for
businesses, so they are aware of their legal responsibilities, and it
(the CMA) will also consider whether further action, such as
enforcement, is needed.