Fraud alleged in government energy efficiency scheme

The Serious Fraud Office investigates three UK companies

Installation of insulation

The Serious Fraud Office (SFO) is investigating allegations of fraud by three UK companies in relation to the government’s axed flagship energy efficiency scheme

JJ Crump, South Coast Insulation Services and Warmfront are alleged to have been involved in a ‘sophisticated conspiracy’ to undermine the Energy Company Obligation 4 (ECO4) scheme by submitting claims where little or no work was undertaken.

Energy companies are suspected to have been defrauded of at least £44m. SFO investigators have arrested four people.

ECO was axed last November after a National Audit Office report concluded nearly all of the external wall insulation fitted under ECO4 required fixing.