Competition watchdog responds to green home heating market investigation
The Competition and Markets Authority (CMA) has published its response to Consumer Scotland’s call for information as part of a review of consumer protection frameworks in the market for energy efficiency and low carbon heating products.
Launched earlier this year, Consumer Scotland said its review will focus on helping consumers decarbonise and improve energy efficiency.
The investigation seeks to examine a range of issues, including whether consumers have access to:
- high quality and accessible sources of advice and information
- strong consumer protections
- fair and affordable consumer incentives
- competitive and clear product choices
As part of the review, Consumer Scotland has issued a call for information across the sector to gather evidence on existing practices.
In May 2023, the CMA published the findings of its own review of consumer protection in the UK green home heating and insulation sector, which assessed the consumer experience of buying products, businesses’ practices in marketing and selling these, and the landscape of standards bodies which oversee quality and consumer protection standards for member businesses and their effectiveness in protecting consumers. It identified concerns in these areas and set out key actions for the CMA, the sector, and for governments across the UK, to help ensure that people are treated fairly and protected.
Responding to the Consumer Scotland call for information, the CMA said it was informed by its own review of consumer protection, focusing on its key findings and recommendations, and its further work to build additional consumer confidence.
In its response, the CMA said: “We welcome Consumer Scotland’s review of the consumer protection frameworks in the market for energy efficiency and low carbon heating products.
“We agree that it is vital to build consumer confidence in this developing market, otherwise there is a risk that people are put off from buying these products and that progress toward net zero is slowed. It is, therefore essential that people can trust businesses in the sector to treat them fairly, that they can make informed decisions about buying and installing products and have confidence that they are protected. Consumer engagement is also needed to drive effective competition in the sector, to spur better innovation and better consumer outcomes.
“Increasing consumer confidence in the sector will require a joined-up approach, so that the key areas of consumer information and advice, and compliance and enforcement, work effectively together.”