Standards, Procedures and Public Appointments Committee

Meeting date: Thursday, November 16, 2017

Official Report 360KB pdf

Cross-party Group

Agenda item 3 is consideration of a proposed cross-party group on consumer protection for home energy efficiency and renewable energy. I welcome to the meeting Clare Haughey MSP, the proposed convener of the group. I invite you to make an opening statement about the purpose of the group.

Thank you, convener. I thank the committee for meeting me this morning.

Over the past few years, MSPs have become aware of historical and on-going issues relating to the United Kingdom Government’s 2012 to 2015 green deal initiative, which has affected hundreds of consumers throughout Scotland. Consumers have been experiencing severe financial issues arising out of the alleged misselling of energy efficiency products. Many consumers have been left without redress, due either to suppliers going into administration or to difficulties in obtaining resolution through the various ombudsmen and other agencies that are meant to address malpractice.

In my constituency, solar panels were widely sold to householders in Blantyre by an approved green deal operator that has since gone into administration. People were told that they would not pay any more for their electricity, that they could save money and that they were helping the environment. So far, 60 individuals have attended a series of public meetings that I have organised in conjunction with the local citizens advice bureau in Blantyre. Attendance at those meetings quickly expanded to include disillusioned solar panel customers from Hamilton and other areas.

Feed-in tariffs—the money that householders were owed for generating surplus electricity—were signed over to a third party with little, if any, explanation to the purchasers. Householders will have to repay the costs of the panels for up to 25 years through their electricity bills, although I have seen one contract that states that the feed-in tariffs pay for the panels. Many people have not only signed over their feed-in tariff but are paying for the panels again through a finance deal. In addition, green deal finance rests with the property, not the individual householder, which has led to householders experiencing serious conveyancing and legal issues when trying to sell the properties.

Multiple issues have emerged, including customers’ bills tripling in many instances, poor workmanship, problems with building warrants that were not applied for by the installing provider and lack of maintenance, particularly since the main provider went into administration.

Simultaneously, in north Glasgow constituencies, MSP colleagues have experienced similar issues, again affecting dozens of customers, although the main issue there is external wall insulation or cladding products. In addition, we have been contacted by customers from many other areas of Scotland and, indeed, other parts of the UK, who are experiencing similar issues.

Citizens Advice Scotland has recognised that there are considerable consumer issues relating to energy efficiency products and schemes that require to be addressed, and the CPG will look at the issue of redress for customers affected by these historical green deal-related issues. However, it is also important to ensure that lessons are learned, so that similar issues are not replicated with the introduction of new schemes, particularly as the UK Government is poised to relaunch the green deal through the now privatised Green Deal Finance Company.

With the UK and Scottish Governments encouraging consumers to improve the energy efficiency of their homes through grant schemes or finance deals, it is important that consumers have confidence in the initiatives.

Given the nature of the problems that you are trying to address, will the CPG have a limited lifespan?

I certainly hope so. I hope that we will be able to get some redress in a limited amount of time as well as instil some confidence in green deal initiatives.

Why do you think that a CPG is the best way to address the issue?

Although Ivan McKee and I have held public meetings in our constituencies on the issue, we have been approached by constituents from throughout Scotland—we are seeing only the tip of the iceberg. We hope that, through the CPG, we will raise awareness among MSP colleagues. Through the other members of the CPG, we hope to raise awareness of the issue at a national level.

Thank you very much for your attendance. The committee will consider whether to approve the application under agenda item 5, and you will be informed of our decision as quickly as possible.