Homeowners warned over green energy scammers

BBC News

3 days ago

Homeowners need stronger protections against rogue traders and scammers capitalising on green energy schemes, according to Scotland's consumer body.Consumer Scotland warned that more people were likely to be targeted as the country transitions to low or zero-emissions heating over the next two decades.It has called on both Scottish and UK governments to ensure stronger regulation of the industry including accreditation for traders and a streamlined complaints process.In a new report the consumer body highlighted scams involving spray foam insulation have already increased by 42% in 2023.
Craig McClue, head of investigations for Consumer Scotland, said: "When we looked at this sector, in particular, we realised that Scotland has climate change targets to be net zero by 2045 and that is going to drive demand for low carbon heating technologies and insulation products."We found that, historically, there have been a lot of scams and unfair trading, and we heard evidence from our enforcement partners about just how prevalent these problems are."When you realise more than two million households are soon going to enter this sector, the risk is very real that consumers can face scams and unfair trading."He added: "We've heard strong evidence about particular egregious traders who have been targeting vulnerable consumers in Scotland."They suggest a loft surveys and suggest they make immediate decisions to get insulation, which proves unsuitable for the home, creates damp, and leads to mould."We then hear these same traders return under a new guise to take the spray foam insulation out. It is almost like a life-cycle scam."The Consumer Scotland report recommendations include better resources for enforcement bodies to tackle rogue trading and mandatory accreditation for all traders in the sector to increase consumer confidence.Sam Ghibaldan, chief executive of Consumer Scotland, added: "The transition to net zero is one of the defining challenges of modern times."For many households, this currently means navigating a complex and unfamiliar sector often at significant cost. This journey must be made simpler, safer, and fairer."Our recommendations will help ensure consumers are empowered, protected, and supported through every stage of the transition, from initial decisions to installation protections and action to resolve complaints."
'Unfair trading practices'
Fiona Richardson of Trading Standards Scotland added: "Scams, mis-selling and rogue trading continues to damage trust in the green home heating market."If consumers are to play their part in the transition to net zero, they must be protected from unfair trading practices and given the necessary confidence to engage in the sector."A UK government spokesperson said: "Allegations of fraud are taken very seriously and for UK wide schemes there is a dedicated Ofgem team working on counter fraud and whistleblowing."A Scottish government spokesperson said it welcomed the report "which highlights the need for a change to clean heating as part of Scotland's commitment to achieving net zero".They added: "It is vital people feel assured that any work carried out to decarbonise their heating is done to a high standard and represents good value for money."That's why we have been working with the UK government and Ofgem on the introduction of new consumer standards for heat network consumers – such as fair pricing and reliable supply – which will be introduced in January 2026."
'I've been a sucker... I should've known better'
"I committed the cardinal sin," said David Adams, 87, a widower who lives alone in Glasgow."Someone chapped my door and I let them in."In late 2023, a representative of a company called Smarter Insulation Ltd appeared at his front door asking to talk to him about spray foam insulation.He explained: "There was quite a lot going on about government grants for people. It seemed to be the thing to do, we were all getting very conscious of emissions, insulation and all the rest of it."The chap went up into the loft and took a test. He said there was damp in the air and this spray foam insulation would help."They had a good looking brochure and it all looked legit."He paid around £5,300 for the work, but a fortnight later he received a phone call from a company called the Roofing Advisory Service (RAS).In documents seen by BBC Scotland News, it warned him of "mis-selling of spray foam insulation by certain companies" and that his home was at risk from damp in the roof space and "potential issues with mortgageability and insurability in the future".In the end, he paid a further £2,750 to have insulation removed by a third company just a month later.It was only after he paid that Mr Adams contacted Trading Standards and Advice Direct Scotland, but he remains £8,000 out of pocket.He added: "You just think, 'I've been a sucker'… That's why I haven't taken any steps to get my money back."I should've known better."
BBC Scotland News spoke with another spray foam customer who paid more than £5,000 to FastFoam Limited, which has the same director as Smarter Insulation.He later paid another firm to remove the spray foam product several weeks later at a total cost of more than £8,000.There is an active proposal to strike off both FastFoam Limited and Smarter Insulation from the companies register.When contacted by BBC Scotland News, a spokesman for Smarter Insulation and Fastfoam blamed RAS as being rogue sellers.
He said: "Both customers mentioned have been contacted by a fraudulent company that emerged after members of our sales team departed to work with RAS."We have provided the details of numerous individuals and customers who have been contacted by RAS to Trading Standards' investigative team."Smarter and FastFoam have now ceased trading."I deeply regret that customers have had to endure such a poor experience while purchasing insulation."The BBC has been unable to reach RAS for comment.Trading Standards Scotland confirmed that RAS, both Smarter Insulation and FastFoam, and the company that removed Mr Adams' insulation are all currently being investigated.