REAL Assurance Scheme
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REAL Assurance Scheme to take action against solar thermal sellers exposed in Which? report
Tuesday, 27th April 2010
The REAL Assurance Scheme exists to protect and raise standards for consumers who purchase small-scale energy generation for use in their own home. Scheme members are legally obliged to comply with the Consumer Code at the heart of the Scheme and overseen by the Office of Fair Trading.
The REAL Assurance Scheme welcomes the Which? report, providing consumers with advice on what to look for when installing solar thermal systems. It is essential that this information is disseminated as widely as possible so that consumers know what to look for.
We also welcome the report’s highlighting of examples of mis-selling and poor service by some companies who supply solar thermal equipment. We will be contacting Which? magazine to follow up on their investigation, and take any action necessary against any of the companies which are members of our Scheme.
The REAL Assurance Scheme takes evidence of non-compliance very seriously, suspending offenders from the Scheme. We regularly check members’ compliance by auditing on a regular basis and mystery shopping where we have reason to suspect non-compliance. We are currently investigating compliance on the part of one of the companies mentioned in the report.
Notes to Editors:
The REAL Assurance Scheme Consumer Code (www.realassurance.org.uk) has Part One approval from the Office of Fair Trading’s Consumer Code Approval Scheme, with full approval anticipated shortly. The Code also dovetails with the MCS, a UKAS-accredited certification scheme for installers. Together these two schemes are designed to provide safeguards for consumers.
The Consumer Code states the following on sales practices:
“Sales employees must not give false or misleading information about their company or the product, service or facilities being offered. They must not make any statement that is likely to mislead the consumer in any way. Sales employees must not use any high-pressure selling techniques, including (but not limited to): staying in the consumer’s premises for more than two hours, offering a high initial price followed by a discount, offering a discount for signing on the day, withholding price information until the end of the visit, or claiming that there is limited availability of the product.”
The Consumer Code states the following on providing performance estimates:
“Members must present calculations using recognised international standards or the guidelines provided by the scheme administrator and based on the MCS. They must provide comparisons for non-expert readers, with predictions presented according to those guidelines. Calculations must be based on product information which has been confirmed by an independent test laboratory in line with all standards that apply.
Proposals to consumers must only include estimates of savings, periods of recovery (‘payback’) or other measures of financial effectiveness where these are based on information from the consumer on his or her existing energy use and cost and should not mislead the consumer into affecting their economic behaviour.”
REAL Assurance Scheme in the limelight
The REAL Assurance Scheme took the limelight at the National Homebuilding and Renovating Show over four days in April at the National Exhibition Centre in Birmingham.
The Scheme exhibit was located in the ‘Eco Homes Spotlight Area: Ask the Experts’. Virginia Graham was on hand to answer a non-stop flow of queries from visitors to the show who are planning to install small-scale generation in their homes. The first piece of advice she gave to them all was to check that the company was a member of the REAL Assurance Scheme before signing up!
Consumer Code for household micro generation clears first OFT hurdle
confirmation of Stage One Completion from the OFT
The Office of Fair Trading (OFT) confirmed in November that the REAL Assurance Scheme consumer code had completed the first of two stages leading to full approval.
The Code sets out the high standards of service that consumers are entitled to expect from a reliable company. It covers providing estimates and quotations, seeking permission and approval and agreeing the contract. It also covers providing guarantees, safeguarding deposits, providing after-sales service and resolving problems that may occur. In his letter John Fingleton, OFT Chief Executive, congratulated the REA on its achievement in reaching this stage. He explained: 'the second stage of the process is designed to ensure that the Code really delivers what it promises'. Virginia Graham, REAL Assurance Scheme Chief Executive welcomed the OFT's announcement: 'This is a really significant step to protect consumers who want to reduce their carbon emissions by installing micro generation in their homes.' She added: 'Companies signing up to the REAL Code are sending a powerful signal that cowboys have no place in this industry.'
The Code applies whether consumers are buying or leasing solar water heating panels, solar photovoltaic panels, small-scale wind turbines, biomass boilers, ground-source heat pumps or any other renewable or low carbon microgeneration technology.
Malcolm Wicks MP backs the Code
REAL Assurance Scheme on 14 June 2006
Energy Minister Malcolm Wicks MP officially launched the REAL Assurance Scheme on 14 June 2006. Welcoming the initiative, the Minister said the Consumer Code would offer consumers the assurance they need before, during and after they purchase microgeneration equipment for their homes.
"It is important as the industry develops that others who want to do likewise have faith in the products and companies who will fit these new types of technologies," the Minister stressed in his speech. “The Scheme is being launched at a time when Government is promoting microgeneration as an essential part of our future energy strategy.”
During the launch the Minister presented the first two members of the REAL Assurance Scheme with their Certificates of Membership. They were presented to Andy Honey from Microgeneration and Martin Curtis from Bioenergy Technology. The Minister later toured the award-winning zero-carbon HQ of Renewable Energy Systems Ltd to see the range of renewable energy technologies installed on the seven hectare site
Ian Pearson MP backs the Code
Minister for Climate Change and the Environment, Ian Pearson MP, also endorsed the REAL Assurance Scheme while attending a Renewable Energy Association fringe event at the Labour Party Conference on 26 September 2006.
"This initiative is very timely” the Minister explained in his speech. “With interest in home generation racing ahead, it is vital that we keep out rogue sellers. By signing up to this Consumer Code, reputable companies can show clearly that they are not in the business of misleading or tricking well-meaning consumers into buying systems that are not suitable for their homes, or that do not work as well as expected."
REAL Assurance Scheme ©2010 | 03/09/2010 | E & OE | www.realassurance.org.uk