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BMF act on insulation market distortions

The Builders Merchants Federation is campaigning against the way they believe the insulation market is being distorted by the Government’s carbon reduction scheme (CERT).

Under this scheme the energy companies are currently subsidising the cost of loft insulation as a way of fulfilling their legal carbon reduction obligations The result is that retail DIY stores chosen to be in the scheme are able to sell loft insulation at prices that merchants can not even purchase it for.

BMF managing director Chris Pateman says: “We have met with OFGEM (Regulator of the gas and electricity companies), to discuss our concerns about the anti competitive nature of the scheme. OFGEM have responsibility for how the carbon reduction subsidies are administered and we were pleased that they took seriously our indignation about how merchants and insulation manufacturers are being adversely affected.

“We are also in dialogue with the Energy Retail Association (ERA), the body that represents the energy companies, with the aim of changing the way they operate their member companies’ schemes. We have made it clear to both OFGEM and the ERA that unless changes are introduced we will instigate a claim of unfair competition with the OFT.

“We will also be commenting on a soon-to-be-issued consultation from the Department of Energy and Climate Change on their plans to enlarge the scheme post 2011 – possibly into heating products such as radiators. We will submit firm arguments to make them aware of the, presumably unintended, anti competitive consequences of their scheme.”

Click here for a copy of BMF’s submission to Ofgem.

Editor’s blog on the subject, “click here

About Fiona Russell-Horne

Fiona Russell-Horne
Group Managing Editor across the BMJ portfolio.

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