‘Misleading’ green heat claims threaten net zero, warns CMA

“Misleading” claims puts customer confidence in decarbonised heating at risk and could undermine a critical plank in the drive to achieve net zero, the Consumer and Markets Authority (CMA) has warned.

In particular, the consumer watchdog has raised concerns about misleading claims by green heating companies, particularly those offering heat pumps or solar products.

In a new report, it says consumers risk being misled by claims, which are not transparent or backed up by evidence, as well as those that do not represent the real-world experience consumers are likely to have of products.

The CMA also raises concerns that some large businesses’ claims about hydrogen capable boilers may constitute greenwashing by misleading consumers into thinking these products are more environmentally friendly than they are.

It cites evidence of several large businesses explicitly marketing boilers as hydrogen-blend or ready, which may give the incorrect impression that use of the gas in the network is imminent. The government has said it will not be making a decision on hydrogen’s role in home heating until 2026, once it has conducted a number of trials.

Businesses making misleading claims, including forms of greenwashing, are likely to be in breach of consumer protection law, the CMA says: “Unless claims are honest and pricing is transparent, people will not have the confidence necessary to switch to green heating solutions, undermining the move to net zero.

“Without consumer confidence, there is a risk people are put off from buying these products and progress toward net zero is slowed.”

The CMA says it will carry out further work into claims about products’ benefits and greenwashing relating to hydrogen-blend or hydrogen-ready boilers, which the watchdog identifies as its two key areas of concern in the green heating and energy efficiency arena, including enforcement action if necessary.

The report also finds more broadly that while there is some evidence that consumers have had positive experiences, buying green heating and insulation products can be a complicated process and a “lack of familiarity and understanding… is a key barrier”.

The CMA report adds that consumers face multiple difficulties especially at the ‘early but important’ decision-making stages before buying such products.

Difficulties cited include finding reliable, trusted and independent information and advice which means consumers often do not know where to start, leading them to rely on businesses.

However the information provided by businesses was “not always up to scratch” and as a result there is a “significant risk” that people are put off from buying green heating and insulation products or end up making poor decisions.

The report adds: “Not only will this undermine consumer confidence and take-up of these products, with impacts on achieving Net Zero, but it can also lead to consumer harm.”

The report raises concerns too that the standards for low carbon heating are “overly complex” with myriad different bodies and schemes that are difficult to navigate. And it says the complaints process is “generally confusing”.

The CMA says it has produced a guide for people looking to buy green heating and insulation products, summarising their main legal consumer rights.

George Lusty, senior director for consumer protection at the CMA, said: “While many businesses will be operating in the best interests of their customers, some businesses appear to be misleading people into buying their products. This needs to stop.

“We will now be exploring these concerns further – including whether to take enforcement action.”

Charles Wood, deputy director, policy (systems) at Energy UK, said: “The CMA is right to note the complexities of industry standards, the need for clarity for consumers about their options and the need to prevent mis-selling of technologies as they increasingly look for alternatives to high-carbon heating.

“We encourage all businesses to assess their practices against the recommendations in the report – not only to protect current customers but to ensure positive outcomes which will bolster confidence in this market for consumers and businesses.”

Responding to the CMA’s new guidance, Citizens Advice head of energy policy Gillian Cooper, said: “The CMA has identified some of the difficulties people face when trying to make green changes to their home. However, without stronger protections and access to independent and unbiased advice, consumers remain at risk of being misled.

“More work is now needed to make sure consumers feel adequately supported – stronger protections should be put in law.”