Liz Truss’ recent announcement which outlined the government plans to freeze energy bills at an average of £2,500 a year is welcomed news for consumers and businesses alike.
Whilst bills will still be significantly higher than last year it appears that they will be less than what consumers would have had to pay following the costs introduced by the Ofgem energy change on 1st October when bills were set to rise 80% to over £3,500.
The energy crisis has led consumers to consider other forms of renewable energy in an effort to decrease their household energy bills. Industry figures reveal that there has been an increasing number of homeowners opting to install rooftop solar panels to generate their own electricity on the promise that they will be able to save hundreds of pounds on their annual energy bill. In addition, commercial installations are also on the rise which shows an increasing number of businesses are also looking at ways to reduce their outgoings.
Solar panels are generally sold as an investment which can pay for itself over time. However, the way in which the investment is sold has not come without significant complaints raised by consumers for being mis-sold packages on the basis that investments have not turned out as expected. Many consumers have incurred significant costs in having solar panels installed and often taken out loans to finance the project. Promises that solar panels would make enough money to pay for the loans over its lifetime have often not been met and consumers have reported that the energy being produced had been far less than what they had been told.
From mid-2021 to early 2022 there has been a considerable number of cases of mis-sold solar panels that have been referred to the Financial Ombudsman Service. In addition, the High Court in the case of Hodgson v Creation Consumer Finance Ltd [2021] EWHC 2167 (Comm) considered what appeared to be a test case on the misselling of solar panels and the liability of lenders pursuant to section 56 (which deals with antecedent negotiations by the lenders agent) and section 75 of the Consumer Credit Act 1974.
It will be interesting to see how this industry develops in these uncertain times and whether the increase in the unit price of energy will give consumers light at the end of the tunnel in considering other forms of renewable energy to curtail rising costs.
If you have been mis-sold a product or service our consumer dispute resolution team can help. Please call our expert consumer law experts on 0161 696 6178.
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