Energy Company Obligations (ECO4) plan.
Although a scheme requiring energy suppliers to fund home insulation and heating upgrades for low-income households has now stopped, investigators believe some companies may have claimed payment for work that was never completed.
The case adds to the growing scrutiny of retrofit insulation programs in recent years.
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What the £44m fraud investigation is all about
The Serious Fraud Office (SFO), working with the National Crime Agency, carried out coordinated raids across England, arresting four individuals on suspicion of conspiracy to defraud.
The investigation centers on claims that companies submitted invoices for insulation work under ECO4 that was either not carried out or only partially completed.
A number of other companies are being investigated for contracts between 2022 and 2024. Authorities believe energy suppliers may have defrauded up to £44m through false or inflated claims.
Graham McNulty, director of the SFO, said: “The scheme was designed to help reduce carbon emissions, reduce costs and help households stay warmer – instead, in many cases we suspect little or nothing has been done.”
Widespread concern over insulation schemes
The ECO4 program has faced frequent criticism in the past failuresThese include inconsistent installation quality, poor workmanship, and limited oversight of contractors and subcontractors in a fragmented supply chain.
Industry commentary and homeowner reports reveal cases of insulation being fitted incorrectly, improper steps being installed and disputes over whether the work meets required standards.
MPs have also raised concerns about how effectively schemes such as ECO4 have been monitored in recent years, particularly given the number of separate bodies involved in delivery and compliance checks.
What happens next?
As the investigation forms part of a wider crackdown on economic crimes, authorities have urged installers, assessors and others involved in the ECO4 project to come forward with information.
Solicitor General Ellie Reeves said: “The scheme was intended to tackle fuel poverty and improve people’s homes. I am sick of people wanting to take advantage of a scheme designed to help vulnerable people, and I am confident that the SFO’s investigation into allegations of significant fraud will provide the public with the right answer.”
This The ECO4 scheme has now ended And being replaced by the Govt scheme of warm houses, which will continue to fund energy efficiency upgrades such as Insulation, solar panels And Heat pump.
