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Energy Company Obligation: Fraud

Asked by Sir John HayesConservativeDepartment for Energy Security and Net ZeroTabled Answered 22 October 2025UIN 81800

The question

To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of the level of suspected fraud on the Energy Company Obligation since 2022.

Answered by Martin McCluskey

The NAO reports that DESNZ and Ofgem have lacked data to estimate fraud levels. However, an independent reporting in May 2025 found weaknesses in the design, operation and oversight of ECO4 that expose it to fraud.

The Department contracted public and private sector expertise to improve its understanding of fraud in ECO4 and how to prevent it.

With greater use of technology, we will work with industry partners to identify and better target fraud and enforce greater consequences on those committing fraud.

We are introducing a new system of consumer protections, with clear centralised oversight to ensure proper installer accountability.

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