As energy prices and bills are set to remain high over the autumn and winter months, Trading Standards Scotland is launching a new campaign to help consumers avoid scams linked to energy efficiency measures and to point them towards sources of trusted, impartial advice.
Throughout the cost of living crisis, scammers have attempted to exploit consumers’ financial concerns. There has been an increase in reports of online adverts, cold callers and rogue traders offering misleading information about the availability of grants and funding for energy efficiency incentives.
Dishonest companies, who often claim to work with local councils or Home Energy Scotland, the Scottish Government’s impartial energy advice service, tell consumers that they are eligible to receive government or council funding for products such as insulation, boilers and heating systems, but ask them to pay for the products up front or take out a loan. Consumers are told that they will receive their money back over time but rarely do. These companies often overinflate their prices and then apply ‘discounts’ which are supposedly equivalent to government grants.
The key aim of the Turn Down Energy Scams campaign is to empower consumers who want to make their home more energy efficient to go about it safely:
- Have an impartial assessment carried out
This will tell you which energy efficiency measures will have the maximum impact and will be most beneficial for your home; which measures should be installed and in which order; if there is any work that needs to be carried out in your property before measures are installed (such as damp/ ventilation/structure) - Do plenty of research
Check trusted sources to find out as much as you can about the energy efficiency measures you hope to install - Find an approved trader
Get quotes from companies/traders who have been vetted by Trading Standards and who have made a commitment to treat their customers fairly at www.approvedtrader.scot
Find Microgeneration Certification Scheme (MCS) certified installers in your area via the Renewables Installer Finder at https://rif.est.org.uk/ - Check the finances
Before having any work carried out, check that financial protection is offered in case anything goes wrong. This could be product warranties, insurance backed guarantees or another form of financial protection.
Check if any grants or funding schemes are available in your area via www.homeenergyscotland.org
If you have received a grant or loan to help with the installation of the energy measures make sure you know any upfront fees and the total length and cost of the agreement. Find out whether the finance is tied to your home or energy use and don’t sign any paperwork until you have read and understood the terms and conditions. - Check permissions
Check if any pre-permissions or notifications are required before installation (such as planning permission or building control)
Check whether you will need to carry out maintenance or servicing going forward to maintain the safety and efficiency of the products.
In the past year there have been particular issues with roof insulation. At the start of 2024, Trading Standards Scotland issued a warning about spray foam insulation, following a 42% rise in scams related to the product in 2023, with Scottish homeowners losing a total of £500,000 to insulation scams in 2023 alone.
Hundreds of consumers had been cold called and offered a ‘free’ loft survey. Those who agreed subsequently discovered that the ‘surveyors’ were in fact salespeople who tried to pressure them into buying spray foam insulation. Some banks have warned that they could reject mortgage applications on homes that have spray foam insulation. There have been several reports of homeowners having difficulty trying to sell a property, take out a mortgage or release equity from a property with foam insulation.
Now, some consumers who were misled into having spray foam insulation installed in their properties are now being contacted by companies who say they are working in partnership with trading standards to assess or remove the insulation.
Trading Standards Scotland has concerns that individuals who originally misled consumers into having spray foam insulation installed may now be contacting them under another business name. There has been an increase in traders proactively making contact and offering to inspect properties where spray foam insulation has been installed. If homeowners agree to an inspection, they are typically then told that roofing repairs are required or that there are issues with damp which require the insulation to be removed at great additional cost. Some insinuate a connection with trading standards or Audit Scotland in an attempt to appear legitimate.
Neither Trading Standards services nor Audit Scotland are not currently working with ANY spray foam removal companies in Scotland. Any communication suggesting otherwise is likely to be a scam.
Consumers who feel they have been misled into having spray foam insulation installed should avoid responding to letters or cold callers offering to remove the insulation.
Case Study
One couple received a cold call saying there could be an issue with the spray foam insulation they had recently had installed in their loft. The caller said that Audit Scotland had instructed them to inspect and fix the insulation and asked to make an appointment to visit the property.
The couple were worried and agreed to have a survey carried out – the ‘surveyor’ then told them the insulation had been poorly installed and would need to be removed before it caused further damage to their loft, also saying that it could affect their ability to remortgage the property.
He recommended a company who could remove it, saying that they had been approved by Trading Standards – they provided a quote of over £4,000.
The couple sought a second opinion from an impartial surveyor, who said that no work needed to be carried out.
Cllr Maureen Chalmers, Chair of Trading Standards Scotland’s Governance Board, said:
“Misleading energy marketing is a priority area for Trading Standards Scotland and we work throughout the year to tackle the problem of rogue traders who are exploiting the existence of energy efficiency grants to make misleading marketing claims in relation to products.
“We would like to remind consumers to be wary of cold callers or social media adverts for energy saving products. Never accept information offered from these sources without doing independent research, particularly if they tell you that there are grants or funding schemes available.
“Before agreeing to have any work done, have an impartial assessment carried out on your home to find out which energy efficiency measures will actually be beneficial to your property. Don’t agree to get an assessment done by a company who cold calls you – they will not be impartial.”
Consumers can find companies and traders who have been vetted by Trading Standards and who have made a commitment to treat their customers fairly at www.approvedtrader.scot.
Legitimate installers can be found via the Energy Savings Trust’s Renewables Installer Finder at https://installerfinder.energysavingtrust.org.uk/
Consumers can contact Home Energy Scotland via www.homeenergyscotland.org or by calling 0808 808 2282 to have an impartial assessment carried out on their property. Home Energy Scotland are funded by the Scottish Government to provide free and impartial advice on energy efficiency measures. Scam letters or calls should be reported to Advice Direct Scotland on 0808 164 6000 or through their website: www.consumeradvice.scot.