The Chartered Trading Standards Institute (CTSI) has warned that the Government’s Warm Homes Plan could open the door to “cowboy builders” unless a mandatory licensing system for domestic energy-efficiency installers is introduced.
While welcoming funding to help households improve energy efficiency, CTSI says rising demand for green heating and insulation upgrades is likely to create fresh opportunities for rogue traders to target vulnerable consumers.
The body has renewed its call for a compulsory licensing regime that would make it a criminal offence to carry out domestic energy-efficiency installation work without a licence.
CTSI says this would protect homeowners, support legitimate businesses and improve confidence in the growing retrofit market.
PROFESSIONAL STANDARDS
CTSI also urged consumers to use installers that belong to recognised Consumer Codes such as the Approved Code Scheme (ACS), which is administered by CTSI and requires members to meet professional standards aligned with consumer protection law, including complaints handling, after-care and access to Alternative Dispute Resolution services.
The warning follows evidence that rogue traders exploited previous government-backed energy schemes, leaving homeowners facing thousands of pounds in damage.
18% of homeowners were deterred from applying for energy-efficiency schemes.
Polling commissioned by CTSI in 2024 found that 18% of homeowners were deterred from applying for energy-efficiency schemes because they did not know how to find a reliable installer.
Trading Standards has also received reports of serious issues linked to heat pump installations, including misleading claims that energy bills would halve when they instead quadrupled, systems being incorrectly sized, poor workmanship and households being left without heating or hot water.
In some cases, heat pumps have been removed and boilers reinstated. Complaints about insulation have included homes being left with severe black mould.
ROGUE TRADERS
Steve Playle, CTSI Lead Officer for Energy and Net Zero, says: “CTSI welcomes the Government’s intention to support consumers in upgrading the energy efficiency of their homes to help work towards achieving net zero carbon emissions.
“However, previous schemes have been preyed upon by rogue traders who see an opportunity to make money at the expense of consumers.”
MANDATORY LICENSING
And he adds: “Following previous scheme announcements, numerous ‘energy companies’ were newly registered on Companies House, which CTSI is concerned consisted of many rogue traders looking to capitalise on grant funding.
“Poorly installed works caused thousands of pounds of damage.”
“This previously saw poorly installed works causing thousands of pounds of damage to homes and inappropriate measures being installed that end up increasing energy costs for homeowners.
“CTSI would urge the Government to introduce a mandatory licensing system for installers of domestic energy-efficiency measures to improve consumer confidence and clamp down on rogue traders in this sector.”
CRUCIAL FOR SUCCESS
And Lesley Crompton, Head of Resolution Services at CTSI, adds: “Ensuring consumers can find a qualified tradesperson to undertake retrofit works is crucial for the ongoing success of the Warm Homes Plan.
“I would urge consumers to ensure they only appoint tradespeople who are members of reputable Consumer Codes, such as the Approved Code Scheme, to give them greater piece of mind in their decision.”
