The Office of Fair Trading has issued a
final warning to June and Floyd Lewis, the mother and son directors of solar
water heater providers Solar Technik Ltd and Ultimate Energy plc, forcing them
to sign undertakings that they will not mislead customers, poorly install solar
heaters and use unfair contract terms.
The move follows an investigation by BBC South West's Inside Out programme,
which found that a Solar Technik salesman had exaggerated the savings that could
be achieved with the company's solar water heaters.
The company, which was also
rapped
by the Advertising Standards Agency (ASA) for making unverifiable claims
about the effectiveness of its products, was further accused of poorly
installing heaters, missing delivery dates and using unreasonable contract
firms.
Solar Technik subsequently went into liquidation, but another company set up
by the Lewises, Ultimate Energy
plc, continues to trade.
An OFT spokeswoman said that the move represented a "last chance saloon" for
the Lewis', adding that any breach of the
signed
undertakings would land them in court.
She added that the ruling highlighted the need for business and domestic
customers to carry out thorough due diligence before installing renewable energy
technologies.
"You need to ask firms for substantiation of their claims and ensure that
they have verifiable data," she said. "We'd also advise that you shop around,
get other quotes and find out who a company's competitors are."
The OFT insists there is no evidence that mis-selling is particularly rife in
the burgeoning renewables energy sector, despite concerns about the lack of
widespread standards for assessing the effectiveness of some micro-generation
technologies.
However, OFT director of markets and projects Ray Hall argued that it was
particularly important that renewable technology customers are fully aware of
their consumer rights, because as a relatively new sector, "consumers will rely
much more on the information given to them by the companies supplying the
product".
Philip Sellwood, chief executive of the Energy Saving Trust, welcomed the
OFT's efforts to ensure customers are not misled about the benefits of some
renewable energy solutions.
"As the independent organisation in this field, we recommend consumers who
are considering solar technology always employ an accredited installer, for
example via the Low Carbon Buildings Programme," he added.
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