Trading Standards Scotland - Consumer Protection in the Energy Efficiency and Renewables Sector - Trading ...
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Trading
Standards
Scotland
Consumer Protection in the Energy
Efficiency and Renewables Sector
Compiled By Diane Bryson, Strategic Analyst, TSS
Reporting Period 01/01/2019-01/01/2020
Document Owner Julie McCarron, Head of Intelligence and Coordination, TSS
Date Produced 07/10/2019
Last Updated 05/06/2020
Date of Dissemination 12/06/2020
Handling Instructions – Official
The information contained in this report is supplied by the National
Intelligence Unit. It is classified as OFFICIAL.
Please only disseminate to relevant partners.
Contents
1. Introduction........................................................ 3
2. Background......................................................... 4
3. Certification Schemes....................................... 7
4. Complaint Types................................................ 9
5. The Enabler......................................................... 12
6. Consumer Awareness....................................... 14
7. The Consumer Journey With a Rogue Trader... 16
Signing up to Energy/Renewable Contract...... 16
Redress Process........................................................ 17
8. Recommendations............................................ 18
1. Scheme Identification............................................... 18
2. Employee Training...................................................... 18
3. Consumer Awareness............................................... 18
4. Quality Mark................................................................. 18
5. Robust Consumer Complaints Procedure.......... 19
6. Crown Office and Procurator Fiscal Service....... 19
7. Data Sharing/Partnership Working......................... 20
8. Additional Funding and Resources........................ 201 Introduction
The sale and supply of energy efficiency products has grown exponentially
over recent years, aided by Government initiatives to reduce carbon
emissions and help consumers reduce their energy bills and consumer
concern in relation to energy bills. Although positive outcomes are being
achieved, the industry remains dogged by rogue traders who have identified
an opportunity to exploit the lack of consumer knowledge in relation to
energy efficiency products and their lack of knowledge of the availability
of grants. If trading malpractice is not addressed, consumer detriment
in relation to this market will continue to grow; consumers’ trust in
government energy efficiency initiatives will be undermined and economic
growth in this sector will suffer. The purpose of this report is to:
• Provide an overview of government policy and assess how it is
unintentionally enabling trading malpractice and consumer detriment;
and
• Identify current vulnerabilities in the consumer journey and suggest
improvements to the government schemes set up to inform and protect
consumers as they seek to improve the energy efficiency of their homes
and reduce energy costs.
32 Background
On 23rd July 2015 the UK Government announced its intention to cease funding
for Green Deal initiatives, bringing an end to schemes offering cash-back and
incentives to consumers on energy efficiency products such as double glazing,
insulation, and boilers. However, in June 2017 the Green Deal Finance Company,
supported by private investors, began providing new loans for improvements
including boilers, insulation and renewable heating systems.
Scottish Government has commenced ‘Energy Efficiency Scotland’; its 20 year
improvement programme to improve energy efficiency in homes and public
buildings. It is also providing funds to local authorities to develop Local Heat and
Energy Efficiency Strategies (LHEES).
Energy Efficiency Scotland has 2 primary objectives;
1. Remove poor energy efficiency as a driver for fuel poverty
2. Reduce Greenhouse gas emissions by 23% in the domestic sector and 59% in
the non-domestic sector by 2030 (compared to levels in 2015)
To achieve these 2 key objectives, the Scottish Government is proposing to set
long term mandatory energy performance standards for all buildings in Scotland
to reach by 2040, including more ambitious targets for properties with fuel poor
households.1
Establishing trust in Energy Efficiency Scotland will be key to its success, so it is
important that products and services are of the highest quality. SG has committed
to establishing robust quality assurance requirements at every stage of the delivery
process, from marketing and communications to the assessment and installation,
which they assess will ensure that consumers are protected. Experience from the
UK Government’s Green Deal showed that if the programme is not adequately
regulated and consumers are not adequately informed, the programme will in fact
be conducive to trading malpractice and consumer detriment. As far as TSS is
aware, Scottish trading standards has not been consulted in developing the quality
assurance scheme.
Even with a robust quality assurance framework, rogue traders outwith the
scheme are likely to seek to exploit it by falsely claiming to consumers that they
are part of it and/or that they can provide (government) “grants” for the products/
services they sell.
Intelligence currently shows that rogue traders are exploiting the existence of
energy efficiency grants to make misleading marketing claims in relation to
products. TSS and local authority TS jointly worked on a project to identify and
disrupt misleading internet based adverts, relating to the sale of energy efficiency
products.
1 https://www.gov.scot/publications/energy-efficient-scotland-strategic-outline-case-proposed-develop-
ment-national-delivery-mechanism/pages/4/
4One Local Authority issued 4 informal warnings to traders in respect of aggressive
and misleading sales practices, as well as cold calling in no cold calling zones.
Another Local Authority also uncovered a trader misusing their Trusted Trader
Logo.
Schemes
There are a number of bodies established to provide advice to consumers in
Scotland on energy efficiency issues. The Energy Saving Trust is an independent
UK-based organisation whose main aim is to promote action that leads to the
reduction of carbon dioxide emissions. It is funded by the UK government,
devolved governments and private sector.
The Scottish Government offer schemes to support people who have difficulty
paying their fuel bills or keeping their home warm. These schemes help to
increase the take up of home energy efficiency measures and reduce fuel poverty,
while also helping the Scottish Government reach their emission reduction
targets. Energy Saving Trust, in partnership with advice providers and energy
companies, manages these schemes on behalf of Scottish Government through
Home Energy Scotland.
Home Energy Scotland have a network of local advice centres covering all of
Scotland, all of which have expert advisors who offer free, impartial advice on
energy saving, keeping warm at home, renewable energy and more. Each advice
centre is funded by Scottish Government and managed by the Energy Saving
Trust;
1. Energy Agency- covering Ayrshire
2. SCARF- Operating in the North East of Scotland
3. The Wise Group- Covering Strathclyde and Central regions
4. Change Works- Covering South East Scotland and another for the Highlands
and Islands
The following is an overview of the schemes and weaknesses that have been
identified through current TSS investigations and received intelligence.
HEEPS: Warmer Homes Scotland- Vulnerable owner occupiers and private
tenants
This scheme offers fabric measures, such as insulation, as well as heating
measures to improve the energy efficiency of the Scottish housing stock and
to sustainably reduce fuel bills. It is available across Scotland but delivered on a
regional basis by Warmworks Scotland.
Home Energy Scotland Loan
Up to £38,500 per home is available to owner occupiers and eligible registered
private sector landlords in Scotland to borrow. This covers a range of energy
5efficiency improvements, including up to £17,500 for home renewables systems. 2
Confusion around who to contact and which government schemes remain
accessible to consumers, those which have ceased, and those which are
merely private sector advertising campaigns makes it increasingly difficult
for consumers to make an informed decision, rendering them incapable of
differentiating between legitimate offers, scams, and misleading sales pitches.
As well as the confusion that is caused, there is a simple lack of awareness of
these organisations. Already well informed consumers who are considering these
energy efficiency products will proactively seek out these agencies, whereas
many consumers are reactive and will be hooked in by opportunistic rogue
traders making unsolicited calls claiming to be giving advice on energy efficiency
products.
Due to some of the schemes being very local based HES isn’t always clear on
what is available in that particular area.
Case Study
A consumer was cold called by an energy efficiency company
with regard to insulating the combes and vertical walls in the
roof areas of their bungalow for free under a government
scheme. The consumer was unsure if the traders were
legitimate.
Trading Standards contacted Home Energy Scotland who stated
they knew nothing about a scheme in the consumer’s area
but also could not categorically say if there was or was not a
government scheme running.
The confusion around the availability of government grants was again highlighted
during the course of an investigation when Home Energy Scotland was unable to
unambiguously answer a query as to whether a scheme offered by a trader was
legitimate. A clear and current picture of legitimate funding schemes is required in
order to allow consumers to make informed decisions as to whether to purchase
products and to allow enforcement bodies to target rogue traders. This problem
is further compounded by the fact that many companies are using names similar
to Home Energy Scotland, thereby inferring they are the legitimate government
funded body.
2 https://www.gov.scot/policies/home-energy-and-fuel-poverty/energy-saving-home-improvements/
63 Certification Schemes
Energy Saving Trust recommends that consumers pick a certified system and a
certified installer when choosing to have energy efficient or renewable products
installed in their home. The problem is that there are numerous different
assurance schemes within this sector that can become confusing to consumers.
The following are some of the most commonly used by traders and installers;
Microgeneration Certification Scheme (MCS)3
This scheme, which is supported by BEIS, sets industry standards
for installers of small-scale renewable energy technologies. It
demonstrates that an installer can install to the highest quality every
time, using products that have met rigorous testing standards.
MCS gives you a mark of quality which provides assurance.
Renewable Energy Consumer Code (RECC)4
The aim of this code is to guarantee a high quality experience
for consumers wishing to buy or lease small scale energy
generation systems for their homes. It sets out high standards in
relation to consumer protection and requires installers to provide
protection for deposit payments and workmanship warranties.
The code ensures MCS certified installers are forbidden to use
high pressure selling or inducement to force quick buying decisions.
Home Insulation and Energy Systems Contractors Scheme (HIES)5
This scheme ensures that consumers are dealt with professionally,
courteously, and sympathetically. Any product which is installed
by a HIES member must be fit for purpose, installed professionally
and come with comprehensive guarantees which are underwritten
with HIES approved Specialist insurance; therefore providing
consumers with a high level of protection and peace of mind.
TSI- Consumer Code Approval Scheme (CCAS)6
CCAS is facilitated self-regulation which aims to promote
consumer interests by setting out principles of effective customer
service and protection. The code aims to give consumers a clear
indication that through the right to display the CTSI approved code
logo that code members can be trusted. CCAS intention is to reduce consumer
detriment and codes will only be approved if they can clearly demonstrate that they
are contributing to this objective.
3 https://mcscertified.com/about-us/
4 https://www.recc.org.uk/
5 https://www.hiesscheme.org.uk/who-we-are/about-hies/
6 https://www.tradingstandards.uk/commercial-services/approval-and-accreditation/the-consumer-codes-approval-scheme
7Trust Mark Government Endorsed Quality7
A not for profit social enterprise, Trust Mark is a government
endorsed quality scheme covering the work a consumer chooses
to have carried out in or around their home. A Trust Mark
registered business has been thoroughly vetted to meet required
standards and have made a considerable commitment to good
customer service, technical competence, and trading practices. In the event that a
problem does arise, Trust Mark offers a range of remedies to give further protection
to consumer.
As well as consumer confusion due to the various different assurance schemes
that businesses may be a member of, there have been previous concerns with
these trusted schemes failing to remove businesses when they fail to meet their
required standards.
This was the case with HELMS. Despite numerous complaints about the business,
and an awareness of their trading malpractice, Home Energy Scotland were
unable to remove the business from their trusted list and could not actively
advise consumers to seek an alternative option. Ultimately, this resulted in more
consumers suffering at the hands of a rogue business.
The Scottish Government, as part of Energy Efficiency Scotland, is developing a
Quality Mark for the energy efficient market. Those wishing to participate in the
programme will have to show that they meet all of the following requirements;
• Skills and competencies broken down by measure and building type;
• Quality management;
• Customer care;
• Fair work practices;
• A Code of Conduct;
• Workmanship guarantees;
• Contractual arrangements with customers
It has also been suggested that in addition to these requirements that the vetting
process should also incorporate the following checks;
• Credit and trading history of the business
• Criminal convictions of Directors, other senior management staff and
operatives8
It is hoped that businesses that fail to comply with these requirements will be
subject to sanctions such as removal of the Quality Mark and from the approved
trader directory.
7 https://www.trustmark.org.uk/aboutus/what-is-trustmark
8 Quality Assurance Short Life Working Group Recommendations Report March 2019
84 Complaint Types
Intelligence demonstrates that fair trading issues in relation to energy efficiency
home improvements have, to date, impacted upon every Local Authority Trading
Standards Service in Scotland.
An overview of the types of Renewable Energy complaints recorded on MEMEX
for the period 01/01/2019-01/01/2020 is shown in the graph below.
385 complaints were logged during this reporting period with the highest number
(16%) relating to solar panels, followed by windows (15%), and Insulation (14%).
70
60
50
Renewable
Energy 40
Complaints
30
2019
20
10
0
Solar Windows Insulation Central Damp Heat
Panels Heating Proof Source
& Wall Pumps
Coatings
There has been a notable increase in intelligence relating to unsolicited calls in
relation to upgrades or accessories for solar panels such as inverters and battery
packs, alongside warranty products. Misleading claims are made regarding the
improvement of performance of the solar panel system when these upgrades or
accessories are purchased. Increasingly, complaints are being received in relation
to other renewable products such as air source heat pumps.
There is no requirement to join a government scheme, and therefore the actions
of rogue traders can have an impact on legitimate companies who are members
of certified bodies as well as allowing these rogue traders to continue miss-selling
to consumers.
9Case Study
A business cold called a consumer and offered to supply and
install heat pumps and solar panels, claiming that they would
save money and make the heating system more efficient. A
contract was agreed and £2500 was paid by bank transfer.
Energy Trust confirmed fitting an air source heat pump would
not reduce heating costs but could possibly increase running
costs.
Smart Meters
An £11 billion government plan began in 2016 to roll out 53 million smart meters
into homes by the end of 2020, replacing all current gas and electricity meters. By
the end of 2018 nearly 15 million devices were installed, however only 12.5 million
were operational9.
A number of concerns have been identified with regards to smart meters;
• Problems with installation
• Issues with switching energy supplier
• Faulty smart meters
• Consumers find their bills are increasing
• Solar Panels and LED lightbulbs affecting smart meters
• Smart meters in rural locations
Smart Meters should only be installed by the consumer’s energy supplier,
installation is completely free and no upfront payment should be requested.
Smart Meter installations should be carried out by qualified and recognised smart
meter installers who have passed a formal qualification and meet the Smart Meter
Installation Code of Practice, regulated by Ofgem10.
Intelligence suggests there have been energy firms providing misleading
information conning consumers into changing their energy supplier to them with
false tariffs and new smart meters. There has also been intelligence reporting on
businesses claiming they work for the council and asking people to change their
meters, and have smart meters installed.
TSS has had a number of investigations into businesses involved in the energy
sector or trading under the guise of “Green Deal”. Common modus operandi are:
• Making false claims of the availability of government funding and grants for
green energy and renewable products
• Offering “free” boilers that are actually sold at inflated prices with the
statement that they are “free” based on projected savings on energy bills
9 https://www.telegraph.co.uk/news/2019/05/14/two-million-smart-meters-not-working-research-suggests/
10 https://www.electriciancourses4u.co.uk/blog/smart-meter-problems/
10• Making misleading claims regarding the returns expected from solar panel
installation or solar panel boosters
Case Study
• Supplying cavity wall insulation without obtaining the relevant building warrants
• Making misleading statements about affiliation with trade associations
• Using pressured and aggressive sales tactics
• Engaging in unsolicited calls, including to numbers registered with TPS
• Failing to adhere to doorstep selling cancellation requirements
• Primarily targeting elderly and vulnerable consumers
Trading Standards Scotland currently has 2 ongoing investigations concerning rogue
traders involved in misleading marketing of green deal products, and there are a
further 7 that have been reported to COPFS and either are ongoing trials, await trial
dates or await marking.
More recently, complaints have involved businesses acting as a broker and taking out
loans on behalf of the consumer. In order to do this the business must be registered
with the Financial Conduct Authority and consumers can check on the FCA website
if businesses are registered with them. Clearer guidance should be made available
surrounding this area in order to strengthen consumer protection within this sector.
Traders have also been found to be falsifying EPC certificates, making properties
appear to be eligible for ECO or other grant funding efficiency measures. This could
cause problems for the home owner further down the line with Energy Efficiency
Scotland proposing that all owner-occupied properties should meet the long-term
domestic standard of EPC C by 2040, and therefore potentially introduce mandatory
action for homeowners from 2030.
Case Study
Trader cold called a consumer and advised they could fit solar
panels and provide a battery that will store energy.
Trader advised consumer to apply for a government grant-
Consumer needed details of the provider.
Trader provided consumer with the name of an installer. The installer
subsequently advised consumer that battery storage is not an option.
Consumer felt misled by trader and requested a refund.
Refund was not provided, and business continued to cold call.
This raises concerns surrounding the training/due diligence of traders and sub-
contractors in the energy efficiency sector. Traders are also using subcontractors to
get round the fact that they themselves are not MCS certified (or equivalent).
Creation of a platform in which traders/subcontractors were able to make a complaint
against a business they believe may not be legitimate and are potentially miss-selling
products to consumers could be a key way in which rogue business are identified.
115 The Enabler
The key enabler for mis-selling by rogue traders in the energy efficiency and
renewable sector is unsolicited telephone calls. In 2018, cold calling and mis-
selling about Energy Efficiency products, particularly Green Deal was the most
reported nuisance call, making up 47% of all nuisance calls in Scotland11.
Trading Standards Scotland Scottish Government Call Blocking Project
Evaluation Report 2019
2%
Green Deal Funding
10% Scam
4%
4% Survey
Telesales
Breakdown 7% 47% Sale of appliance
of calls by insurance - unclear if
telesales or a scam
topic 7%
Accident Claims
19%
Energy Provider
Other
TSS is currently proactively monitoring unsolicited call activity through analysis
of data provided for telephone numbers that have been blocked by trueCall call
blocking devices fitted to the telephones of identified vulnerable consumers
across Scotland.
In addition to lead generation by telephone calls, intelligence suggests that pop
up ads on social media is also a significant lead generator source for the sale of
energy efficiency products.
Recent work by North Lanarkshire Council, Trading Standards Scotland and
the ICO, has uncovered a market in lead generation for same within the UK.
Increasingly this activity involves the seeding of adverts through promoted posts
on social media, bespoke websites or adverts in traditional media, which entice
consumers with offers of “funding”, or “grants” towards energy efficient home
improvement works.
11 Trading Standards Scotland (2019) Scottish Government Call Blocking Project Evaluation Report.
12Often such adverts are placed by third party businesses which are simply placing
enticing offers to capture consumer data which they subsequently sell as leads to
third parties. Regardless of whether the business behind the advert is providing
the end goods/services to consumers themselves, their activities would be
deemed commercial practices, governed by the Consumer Protection from Unfair
Trading Regulations 2008.
The ASA has already adjudicated on a small number of such adverts, finding that
the offers of funding and other claims in the adverts could not be substantiated.
TSS is currently investigating an organisation assessed to be involved in this activity
and who are known to generate sales leads for a number of rogue traders either
currently or previously subject to TSS investigation.
136 Consumer Awareness
In addition to consumer lack of awareness of energy efficiency In addition to
consumer lack of awareness of energy efficiency products and the availability of
government grants, there is a lack of knowledge of general consumer rights when
entering into contracts. The results of an omnibus survey recently carried out by
CAS on awareness of rights and redress are as follows12:
Adults who had recently purchased Energy Efficiency Equipment
-28% were aware of the cooling off period (cancellation rights)
-34% were aware of the terms and conditions
-34% were aware of coverage available if purchased on a credit card
-22% were not aware of the above
-25% could not remember or recall
Adults who had recently purchased Renewable Energy Products
-41% were aware of the cooling off period (cancellation rights)
-49% were aware of the terms and conditions of the product
-39% were aware of cover available if purchase was made on a credit card
-4% were not aware of any of these
-16% could not recall
As can be seen from the above results less than 50% of all those who participated
in the survey were aware of their consumer rights.
The Helms case showed how the lack of awareness of consumer rights
compounded by a lack of knowledge of energy efficiency products and the
operability of government schemes created an ideal breeding ground for
consumers to be defrauded. This was further compounded by consumers’ lack of
knowledge of where to complain and the lack of complaints information sharing
between energy efficiency advisory bodies and trading standards.
12 CAS Response to Energy Efficient Scotland consultation (March 2019)
14Case Study - HELMS
Energy Saving Trust initially received 250 complaints in
relation to HELMS. TSS initiated an investigation, sending
out questionnaires to all complainants which resulted in 150
responses. Due to the complex nature of the offences and
legal time bars on reporting, only 31 cases were reported to the
Procurator Fiscal for consideration. Therefore, the true scope
of the detriment caused to consumers by the activities of this company, are
significantly higher than that recorded in the case to the crown.
TSS have used the cost of the full cost of the system to illustrate the detriment.
Based on the 31 complaints reported a total detriment figure for those
individuals is £375188.00
If we assume the detriment is the cost of the system then the average detriment
was £12000, based on 150 complaints that were investigated that would provide
a detriment figure of £1.8M.
If we base average detriment on the figure paid in cash as deposits by the
consumer for the 31 consumers it is £107,501, an average of £3.5K providing an
illustrative figure of £0.5M for the 150 complaints.
15The Consumer Journey
7 With a Rogue Trader
Signing up to Energy/Renewable Contract
A trader becomes authorised to sell renewable products by one of the many
schemes without proper checks being carried out on the business.
The trader establishes where the renewable energy schemes/grants are
available and aims to target the individuals that live within these areas.
Elderly/vulnerable consumers tend to be more susceptible to the marketing of
these products. They are subjected to unsolicited sales calls from the trader and
advised that they can have energy efficiency home improvements for FREE.
A sales person of the business then visits the consumer, who endures a lengthy
and sometimes aggressive sales pitch claiming that;
-All the improvements are free
-It is funded by a Government Grant
-Their energy bills will be reduced
-They are persuaded to get energy products which they do not need or which are
not suitable for their home
-They are given misleading advice with regards to the usage of their electricity
The consumer then agrees to sign up to the deal and is given an extensive
and complicated contract to sign. They are not given the time to read over
and understand the contract and their cancellation rights are not explained to
them or even provided in the first place.
The business sets up a financial deal with a credit company on behalf of the
victim. Unbeknown to the consumer, the trader should be registered with the
FCA in order to carry this out.
The products are then installed, sometimes incorrectly and on occasions causing
damage to the consumer’s home and even depreciation of its overall value.
Consumer fails to see any benefits of the new products, and in some cases
their bills increase.
16Redress Process
Consumer feels misled by the product they have purchased/had installed and
makes a complaint to the trader.
Trader acts aggressively and claims that the consumer has misunderstood the
process. The consumer is told that the agreement still stands as they have
their signature on contracts to prove that they understood and agreed.
Consumer is unsure of who to complain to. They may contact the Energy Saving
Trust who may advise they contact Advice Direct Scotland (ADS). ADS will then
tell the consumer to write a recorded delivery letter of complaint to the trader-
which is more often than not ignored and rejected.
The consumer may also be advised to write to the Financial Ombudsman Service
(FOS) for breaches of credit regulations.
Home Energy Scotland/Energy Saving Trust/Ofgem end up with numerous
complaints of rogue traders. Despite these complaints the business is not
removed from trusted lists or certified schemes.
Complaints are passed to local authority Trading Standards who may in turn
pass to Trading Standards Scotland who investigate under the CPRs.
The consumer is then contacted by TS and asked to provide a statement. The
victim has now dealt with another regulator and is further confused.
TS conducts a criminal investigation which can often be complex and lengthy
with the consumer obtaining little or no redress.
The consumer has been left with renewable product(s) in their home which
serve very little benefit or are of no use whatsoever, and end up with higher
energy bills than what they had before. The value of their home may also be
affected if the cost of the product is still being paid off through energy bills.
178 Recommendations
1. Scheme Identification
There are numerous energy schemes available which all fall under different
categories and are managed by different agencies. HES have a network of advice
centres across the country- all of which have a different name, a factor which can
become extremely confusing to consumers. Having one identifiable name for the
advice centres may make it clearer for consumers to know who to contact when
they need advice on energy and renewable products.
To raise the profile of Home Energy Scotland, Scottish Government should
consider promoting them through an advertising campaign. Adverts by those
promoting energy efficiency products could be required by law to include
a statement about obtaining independent advice from HES before making a
purchase- similar to the requirement that is placed on legal services.
2. Employee Training
As mentioned, on more than one occasion energy agencies have been unable
to state whether a particular scheme is available within an area and whether the
schemes being offered by traders is legitimate. A better monitoring system is
required; employees should have access to a database which details all legitimate
schemes which are available and in which particular areas.
3. Consumer Awareness
As shown in the CAS survey a high % of consumers are unaware of their rights in
relation to energy and renewable products. This is perhaps an area which could be
addressed by Consumer Scotland when it comes into being in 2021.
4. Quality Mark
A single well publicised quality mark which all traders must join if they are to be
eligible to undertake certain kinds of energy efficiency/renewable installations
or carry out work for which there is a government grant would help remove
consumer confusion surrounding the numerous assurance schemes that are
available for trader to sign up to. Scottish Government has made a commitment
to create the Quality Mark, however it remains to be seen what areas of work this
will cover and whether it will involve a robust vetting scheme. Having a single
organisation perform the vetting and accreditation for quality assurance could help
combat the issue of phoenix companies moving from one accreditation scheme
to another.
18The vetting should take account not only of criminal convictions but also of any
other evidence demonstrating, on balance of probabilities, that the subject or
its accessories are not fit and proper persons. The vetting process should have
mandatory consultees, including TSS and Police Scotland.
A central directory should be available of traders signed up to the Quality Mark.
Traders who fail to meet the requirements of the Quality Mark should be subject
to sanctions. This could include;
• Temporary suspension from the approved trader directory until all
concerns are remedied
• Complete removal from the trader directory
• Removal of the quality mark
Despite the number of complaints made against HELMS they maintained
their registration with certified bodies and operate as an authorised trader, this
allowed them to continue their malpractices with the endorsement of the Green
Deal13.
5. Robust Consumer Complaints Procedure
Under the Green deal, the redress process was perceived to be convoluted and
challenging to consumers.
A simple, ‘user friendly’ scheme which recognises consumers’ lack of
knowledge of energy efficiency products and government grants is required.
As mentioned rogue businesses may subcontract work out to other traders
who then could potentially pick up on misleading sales as to the products being
offered and subsequently installed in consumers’ homes. This is key intelligence
and legitimate businesses should have a safe platform in which they are able to
report their concerns regarding these unlawful traders.
6. Crown Office and Procurator Fiscal Service (COPFS)
Since 2015, over 30% of TSS concluded cases concerned the type of activity
relating to Energy Efficiency with combined detriment of over £4.5M. However
none of these cases have resulted in outcomes, with the exception of one in
which Part 8 undertakings were secured. Only one criminal trial commenced
but was deserted.
An improved relationship with COPFS is recommended to stress the harm being
caused by consumer crime in the Energy Efficiency marketplace.
13 CAS Response to Energy Efficient Scotland consultation (March 2019)
197. Data Sharing/Partnership Working
Data sharing between the key partner agencies (EES/HES, CAS, TSS, LA, Police
Scotland) is vital so trading malpractice is identified and tackled as early as
possible. It is also necessary for vetting individuals prior to acceptance onto a
scheme as different organisations may hold key intelligence which could affect
the final decision.
8. Additional Funding and Resources
The energy efficiency sector is a national priority for Trading Standards Scotland.
This means that resources are prioritised to address it. Local authority trading
standards are also working with TSS on coordinated, proactive enforcement
action. However if Scottish Government’s quality assurance scheme is to
be sufficiently robust, it is likely to require additional market surveillance and
intelligence gathering resource from trading standards which will require
additional funding.
20www.tsscot.co.uk
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