Warm Homes Plan - Consumer Protection Reform

Description

Disclaimer The information set out below is indicative only. The scope, timelines, routes to market, contract values and duration are subject to change. Reform proposals are also subject to public consultation later in 2026 which may significantly alter the Authority’s approach or decision to run any form of tender exercise. Introduction In January 2026 the Government published the Warm Homes Plan (WHP), setting out how it will help households reduce energy bills and transform the existing building stock into comfortable, future proofed low carbon homes. The Plan explains how home upgrades, including microgeneration measures (solar panels, batteries and heat pumps) and energy efficiency measures (insulation), will support bill reductions. Delivery of the WHP requires consumer confidence that work in homes is high quality. There are three priorities for reforming consumer protection for retrofit: Simplicity – the consumer protection system should be easy for consumers and installers to navigate. Right first time – clear accountability and oversight is needed to prevent poor quality installations, and ensure work is delivered correctly in majority of circumstances. Swift remediation and redress – where issues do arise, consumers must have clear routes to remediation, with costs addressed appropriately depending on the circumstances, and decisive action taken against noncompliance. The reforms propose oversight of consumer protection for energy efficiency and microgeneration installations in government supported schemes will be brought under closer government control. Please refer to the WHP for further detail. The Government is considering how best to reform delivery and assurance arrangements, including where direct government delivery or third-party delivery is most effective in delivering for consumers. The system will apply to government supported schemes and, where appropriate, may also be used voluntarily for non-government funded work. Initial Market Engagement In April and May 2026, the Department undertook initial market engagement to inform the market on possible delivery routes for consumer protection. The slides presented and a recording of the webinar are available on the DESNZ procurement portal opportunity listing: [https://beisgroup.ukp.app.jaggaer.com/esop/guest/go/opportunity/detail?opportunityId=60920] Delivery Model Assessment (DMA) Delivery of consumer protection reforms is subject to an ongoing delivery model assessment within the Department. This assessment is considering a range of delivery models, including in house, outsourced and hybrid approaches, and their implications for quality assurance, consumer protection, pace of delivery, value for money and system resilience. The outcome of the DMA and public consultation will have a significant impact on the plans for any procurement for consumer protection for government support retrofit schemes. The result from a procurement perspective may include but not be limited to: There is no procurement activity. There is one large procurement for all or part of the scope of services detailed in this notice. There are multiple procurements for all or part of the scope of services detailed in this notice. The procurement(s) may or may not be separated into lots. The route to market and choice of procedure may differ from the contents of this notice. The value and duration of any contract may differ from the contents of this notice. The timeline of any procurement may differ from the contents of this notice. The scope of services may be substantially similar or substantially different to the contents of this notice. Final decisions about how consumer protection will be delivered, and the involvement of commercial actors in the future arrangement have not been made yet. As thinking around the delivery model evolves, if any part of the service will be outsourced, additional market engagement will take place as required alongside, or following, the policy consultation. This will include more detailed engagement with suppliers on the requirements, procurement procedures and contract terms among other things. Suppliers will be notified of such engagement via additional notices. Individuals and organisations will have the opportunity to comment on the policy design for consumer protection through the public consultation later this year. Scope of services Summary The primary objective of the consumer protection regime is to ensure consumers receive safe, high-quality installations. Strong protections are essential to building trust in the retrofit market, with remediation and redress needed only in exceptional cases. The service will provide a coherent, well-governed and future-proof consumer protection system that supports DESNZ policy objectives and industry standards. A single system will apply across energy efficiency and microgeneration. The system must operate transparently and reliably, with clear accountability and strong assurance. Suppliers will need the operational, technical and governance capability to deliver consistent performance, manage risk and support tighter government oversight, continuous improvement and value for money. The four service areas below describe the possible full functional scope required. This does not imply that all services would be delivered by a single organisation or that market delivery would be appropriate for all elements. 1. Service Delivery This area covers frontline functions for consumers and installers or retrofit professionals. It includes public and market channels, user journeys, casework, communications, branding and supply chain engagement. Required outcomes: Development and maintenance of an approved retrofit supplier list. This list would be an accurate register of approved retrofit professionals, eligible to deliver government funded retrofit work, with robust onboarding/offboarding and eligibility controls. Consumer protection service promotion and awareness. Delivery of accessible, visible and clear branding aimed at Installers/retrofit professionals and consumers to support understanding of the service and benefits. Consumer interface and casework process. An accessible public‑facing service with case management processes for consumers to support queries and redress. Installer/retrofit professional interface and lodgement process. Provision of an accessible industry-facing system for lodgement/upload of measures installed. Training and professional development. Support and guidance to industry to support compliance with standards and codes of conduct. This service does not duplicate the certification role of installer Certification Bodies. Responsibility splits and governance arrangements in a reformed system will be consulted on later in the year, as set out in the Warm Homes Plan. UKAS will continue to accredit Certification Bodies, and accreditation is out of scope. 2. Data, Technology and Intelligence This area covers the infrastructure and analytical capability needed to run the service securely and reliably. It includes data collection, storage, data warehousing, secure user platforms, and analysis to identify risks and support improvement. Required outcomes: Data collection, storage and sharing. Provision of a secure data storage system with accessible user interface, real time access and defined data rights and sharing agreements. Data analysis and intelligence. Data analysis to provide insights to support operations of the consumer protection system. Data on installations and performance will be used to track issues and identify risks in the system. Information governance and security. Lawful, secure processing of data. Technology and digital services. Provision of reliable and accessible user platforms to support the operations of the consumer protection service. 3. Protections, Quality Assurance and Compliance This area provides the oversight and assurance framework that underpins trust in the system. It covers auditing, fraud and risk management, installer performance monitoring, proportionate enforcement and escalation, and financial protections for consumers. Required outcomes: Auditing, quality and risk management. Establishment and delivery of an oversight and audit regime, through a combination of proactive and risk‑based oversight. Financial protection mechanisms. Establishment, delivery and active management of a system that ensures consumers have valid financial protection, over a set time, to acceptable standards. Performance management and enforcement. Establishment, delivery and active management of a sliding scale of proportionate interventions to encourage compliance and quality installations. This should move from early preventative action through to formal enforcement and escalation to support redress and overall quality in the system. Standards are out of scope for this work, but we are aware of organisations with existing standard development functions, who may wish to have a specific discussion on this topic. As part of a separate workstream, DESNZ is continuing to sponsor BSI to produce the next amendment of PAS 2035/2030, planned for publication in Winter 2026. 4. Contract Management and Governance This area provides the commercial, financial, reporting and governance framework needed to oversee performance and ensure effective operation. Required outcomes: Commercial, contract and financial management. Implementation of governance, reporting, processes and controls to deliver the service, support BAU and continuous improvement. Stakeholder and regulator liaison. Effective engagement with industry bodies and installer groups. Engagement with regulators and Other Government Departments. Mobilisation and exit from the contract.

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