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HSE signs contract with Capita to run the new gas installer registration scheme

On 8 September 2008, HSE awarded a 10 year contract to the Capita Group Plc to provide a new registration scheme for gas installers from 1 April 2009.

The current scheme has been in place for more than 17 years.  During this time the number of domestic gas related fatalities has fallen significantly.  However, a review in 2006 involving gas industry stakeholders (including gas installers and their representatives) and consumer groups identified no room for complacency and a strong case for change.  We have listened to these views in developing a modernised scheme which is set to deliver improvements to gas safety and added value for consumers and gas installers.

For gas consumers

A commitment to improve gas safety through:

  • Raising of awareness of domestic gas safety risks.  Capita is committed to substantially improving current levels of awareness during the term of the contract.  There will be significant investment in a new gas safety brand aimed at becoming the ‘hallmark' of gas safety and a new gas safety charity to specifically promote gas safety.  Evidence suggests that less than 50% of consumers understand the risks associated with gas and how to manage them properly. This needs to be improved. 
  • Measures to improve public assurance about the competence of registered gas installers and the safety of gas work.  There will be a new risk based inspection approach aimed at finding and reducing unsafe gas work.  Capita's success in delivering this will be measured on an annual basis.

Gas consumers are key customers for the Register and Capita will provide modern and efficient customer services.   It is committed to improving levels of consumer satisfaction with the services they will be providing. Their success will be independently verified annually.

For gas installers

  • A register that focuses exclusively on gas safety and promoting the competence of registered installers.  The scheme will be ring-fenced from other commercial activities.  The new gas safety brand will owned by HSE, on behalf of installers, to ensure it is only associated with gas safety and so that it is safeguarded for the future use of the scheme.
  • Gas installers are key customers for the registration scheme and Capita will focus on delivering improved installer satisfaction with the way the scheme operates for them; and with having in place a complaints mechanism if things should go wrong.  This will be independently verified annually. There will also be new approaches to inspection which will aim to target unsafe and unregistered gas work, not installers who are working safely and competently. 

The contract is designed to deliver better value for money for installers through:

  • The introduction of more flexible payment and registration options.  There will also be a review of the competence requirements for registration with a view to simplifying them.
  • Agreement to reduce fees and costs in real terms during the period of the contract.  Capita is also committed to reducing administrative burdens on installers. 

These commitments are set out in a formal 10 year contract with HSE which will deliver strengthened management arrangements and the opportunity for greater longer term investment for the benefit of gas consumers and installers. There are contractual and financial implications should there be failure to deliver.

More about the new service

Registration

The provider will create and maintain a new register that will contain details of businesses and operatives and CORGI will transfer to the provider the registration details it currently holds.

New Rules of Registration will be drawn up before re-registration takes place. These will be agreed with HSE and then made freely available to installers.

The provider will draw up Competence Criteria for registration in consultation with the awarding bodies and the agreement of HSE. These will be made freely available to installers.

New Identity Cards will be issued following registration and gas consumers will be encouraged to ask to see them.

New businesses and installers with no previous history or those returning to the industry with a history of complaints or a record of unsafe gas work will undergo a time limited Probationary Period. During that period they will be required to report gas work they are doing so that the provider can inspect one or more pieces of work

The provider will establish a field force to monitor that gas work is being undertaken competently and safely. It will deal with reactive complaints, undertaking planned inspections and handle ad hoc requests. The field force will work closely with the regulators such as HSE. The work of the field force will be informed by a new risk based inspection model.

The provider will have in place a new system to receive and disseminate safety alerts and to provide technical information to installers.

The provider will establish a contact centre accessible to installers and gas consumers. This will be accessible through the web, by telephone or post. It will handle all contacts and enquiries.

Installers and businesses will receive a monthly magazine to keep them up to date with important news, technical information and features regarding gas safety

The provider will establish complaints and independent appeals procedures for gas consumers to complain about unsafe gas work; and for installers to complain about the service they receive from the provider or decisions taken against them by the provider.

Key Performance Indicators (KPIs)

Installer satisfaction with the registration scheme will be measured annually rising to 90% by year 5.

Consumer satisfaction with the registration scheme will be measured annually. The initial target for the end of year 1 has been set at 75% rising to 90% by year 5.

The provider's risk model will be monitored through two KPIs. Firstly by testing that the provider is achieving increased effectiveness in targeting unsafe gas work. This will be done through risk based inspection by measuring the annual increase in the proportion of unsafe gas work found as compared with unsafe gas work found in random inspection The initial target is a 10% increase on a baseline set in year 1, then by 7½%, 5%, 5% and 5% up to year 5. Secondly, by reducing the amount of unsafe gas work. This will measure the reduction in the proportion of justified consumer complaints where safety defects are confirmed in inspection, and by a reduction in the proportion of unsafe gas work found through random inspection sampling

Consumer Awareness of Gas Registration

The provider will establish a marketing communications plan to raise consumers awareness of registered installers and gas registration. This will support the creation of the new gas safety brand. The objectives for the brand include championing gas safety as a hallmark for the protection of gas consumers from unsafe gas work and promoting the need for gas consumers to use only registered businesses and operatives.

The brand will be held in trust for gas installers by HSE and made available to any scheme provider in the future.

This will involve a change of branding for which detailed plans will be published when the brand is ready. The sort of support that the provider aims to offer businesses and self employed installers includes a marketing toolkit with the new logo to help with creating stationery and advertising. The provider is also in discussions with suppliers of van stickers to negotiate discounted rates.

KPIs

Consumer awareness of gas safety risks and the need to use registered installers will be measured annually against a baseline set in early 2009. A 15% target increase has been set at the end of year 1 rising then by 10% a year until year 5.

Unprompted recognition of the gas safety brand by gas consumers will be measured annually. The initial target for October 2009 has been set at 40% rising to 75% by October 2011.

Stakeholder Management

The provider will develop a stakeholder management plan to ensure there are good relations with the large number of stakeholders with interests in gas safety and the registration scheme. These relations will be measured annually. The provider will be expected to achieve continuous improvement of relations with key stakeholder groups and positive perceptions of the scheme provider. A baseline will be set during 2009. A 20% target increase has been set for the end of year 1 rising then by 15%, 10%, 5% and 5% a year until year 5.

Relations with HSE

HSE will appoint a Contract Manager to oversee the day to day relations and management of the concession agreement. Over the coming months a Concordat will be developed to deal with ways of working between the provider and the various parts of HSE which will deliver many of the detailed aspects of the agreement.

During the transition period there will be a transition plan overseen by a Transition Governance Board made up of representatives of HSE and the provider.

New strategic management of the transition in April 2009

A new Operational Governance Board will oversee the management of the agreement. Strategic management of the transition and subsequent operation of the scheme will be overseen at Board level by a Joint Steering Board in which senior managers from HSE and Capita will be involved. This body will have the final say in scrutinizing annual performance of the scheme.

Frequently asked questions

About the scheme

Why has HSE awarded a 10 year contract to Capita when the invitation to tender requested bids for a 5 year contract?

During the competition it became clear there could be significant advantages for gas safety and installers achieving better value for money in going for a longer period. HSE asked bidders to consider alternative periods and given the potential additional benefits, it was right and proper for HSE to consider them.

The anticipated benefits include additional investment in improving gas safety, reducing burdens on gas installers, and encouraging more installers to become registered. A 10-year term will also secure longer term certainty for consumers, installers and registration scheme employees.

The terms of the contract are such that HSE retains the discretion to open the scheme to other competitors or terminate the contract after five years.

How do you know whether Capita will deliver on what it has promised?

HSE has agreed strong contract management arrangements with the new provider, including:

How can HSE allow Capita to profit from gas safety?

Allowing the new scheme provider to make a profit attracted strong competitive interest in the scheme and innovative ideas to bring added value to gas safety. HSE believes that this will deliver improved gas safety and improved services for gas consumers and gas installers.

Profits from the new scheme are capped, and there are a number of additional safeguards to ensure that the provider is not able to take commercial advantage of its position. For example, the new provider will not be able to offer any services to gas installers beyond its core services, without permission from HSE.

What are the anticipated benefits for consumers?

What are the anticipated benefits for gas installers?

Consumers

How will the new scheme affect me?

A key aim is to get better information out about what domestic gas consumers need to do to use gas safely. This will include information about the need to use registered gas installers for installing and servicing your gas appliances. There are incentives in the scheme to increase the numbers of registered gas installers and reduce the numbers of those working unregistered. This should give you greater assurance that gas work will be undertaken competently and safely.

There will be a new risk-based system to inspect work undertaken by gas installers. This will target unsafe gas work thereby providing greater assurance that engaging a registered installer will deliver safe gas work.

The Contact Centre aims to provide a comprehensive service to gas consumers which will be measured through a key performance indicator, and the provider is expected to deliver a continuously improving service to consumers.

What does Capita know about gas safety/ gas installations?

Many of the gas inspectors who are currently employed by Corgi are expected to transfer to Capita under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE). This will provide continuity, and ensure that their considerable experience and expertise in this work is available to the new scheme.

Will it cost me more to get my boiler and other gas appliances checked/ maintained?

The cost of registration is only a small element of the bill you pay but the new arrangements are designed to drive down costs associated with the gas installer registration scheme.

What help will Capita provide in finding a good local registered gas installer?

The contact centre and new registration scheme website will from early in the New Year provide information about registered installers in your area, when the new scheme comes into force.

How does Capita propose to handle complaints about unsatisfactory work by installers?

The provider will introduce a new complaints handling system.

How does Capita propose to protect consumers from “rogue traders” and unregistered gas installers?

The provider will have a specialist team to track down these individuals and discourage them from operating illegally. They will work closely with HSE on any enforcement action. The new gas safety brand will also help in encouraging consumers to ask for registered installers, reducing the scope for ‘rogue traders' to find work.

How can I check whether a gas installer's ID is valid?

All registered installers under the new scheme must carry ID cards that easily identify the appliances on which they are qualified to work, and consumers are strongly encouraged to check the ID card before letting anyone begin work on their gas appliances.

Registered Installers

How much will it cost me to register?

As part of the new scheme, HSE stipulated that bidders should set registration fees at affordable levels, aiming to reduce them in real terms during the lifetime of the contract. Capita are expected to announce details about fees for 2009/10 early in the New Year.

What consultation took place with installers in the run up to the signing of this contract?

Right from the start of this process, during the review of gas safety 2006, installers and their representatives were actively involved. We listened very carefully to what installers and others had to say about the current arrangements and the new scheme is designed to address a number of the concerns expressed.

HSE couldn't consult installers or others about the detailed aspects of the competition and, because this was a commercial procurement exercise, we were restricted in what we could say publicly at that time . Nevertheless throughout the process we have aimed to keep installers as up to date as possible with what's been happening through our website www.hse.gov.uk/gas/

Why change the gas registration scheme brand?

The CORGI brand is owned by the CORGI Group, not gas installers or HSE. The new gas safety brand will be held by HSE, on behalf of gas installers, will be used by the provider for the duration of the contract, and will be available to whoever runs the registration scheme in the future. The new brand will focus exclusively on gas safety.

Before and during the competition, HSE did discuss with CORGI various possible options for purchasing or licensing the CORGI brand for the competition.  We had to conclude that it would not be possible to do so in a way which would not disadvantage competitors and which would not lead to future problems with ongoing, associated commercial activities.

What will happen to my current registration with Corgi between now and 1 April 2009?

Nothing will change before 1 April 2009. Your current registration with CORGI will continue, and you should comply fully with the current registration requirements.

Can I keep my old registration number?

Yes.

Will ACS exist under the new scheme?

Yes, and you will not need to be re-certified just because of the new scheme. However, the provider will need to produce a competence criteria for registration for the new scheme, and will be consulting on these in the coming months.

What will happen to the Gas Work Notification Scheme (GWN)?

Nothing will change before 1 April 2009. However, the provider will make an announcement about the GWN in the New Year.

Will I still be able to get technical help, and if so, in what form?

Yes. Further details will be announced via the trade press and trade stands over the next few months.

How will the new registration scheme and new gas safety brand be publicised?

The provider intends to run an extensive publicity campaign in the months leading up to 1 April 2009, using trade press, trade stands and the general media to publicise both the new registration scheme and the new gas safety brand.

Will I be compensated for the cost of re-spraying my van, printing new advertising materials, business cards, letterheads etc.?

Whilst no compensation will be given, there are plans to assist with transitional arrangements. The provider will be issuing further information about the new scheme, branding issues, and what it means for gas installers over the coming months.

How does Capita propose to handle to problem of the “cowboys” and illegal gas installers who bring our industry into disrepute?

The provider will encourage illegal gas installers to register. They also intend to set up an enforcement team to track down these individuals, and will work with HSE in gathering evidence to inform enforcement action.

Landlords and tenants

Will I still have to arrange for a safety check to be carried out on any gas appliances, pipework etc. in my property?

Yes, landlords' duties under current domestic gas safety requirements remain unchanged. Advice on landlords duties are contained in HSE's guidance to landlords and letting agents

How can I check whether an installer is qualified to undertake a gas safety check in my property?

All registered installers under the new scheme must carry ID cards that identify the appliances on which they are qualified to work. Consumers are strongly encouraged to check the ID card before letting anyone begin work on their gas appliances.

Will my landlord still have to carry out a safety check?

Yes. For further details, see HSE's guidance for tenants

Suppliers

How should we describe the new scheme when we are advertising/ selling our inspection/ maintenance service packages to consumers?

The provider will be developing the new gas safety brand over the coming months. An announcement is expected in the New Year.

Retailers and Manufacturers

Can I still supply individuals proposing to carry out DIY in their own homes with gas appliances/ fittings?

Yes, providing they are competent to do the work. You may want to remind those wishing to undertake DIY of the possible risks to themselves and to others when they are carrying out gas work.