Independent experts have been asked to see whether the Energy Efficiency and Conservation Authority's (EECA) potentially onerous audit system can be streamlined.
The audit system has already prompted Energy Minister Gerry Brownlee to warn 11 Warm Up New Zealand: Heat Smart contractors that further failures could cost them their contracts.
They were warned after auditors found problems including insulation being installed too close to a heat source in houses retrofitted from late last year.
A Dunedin joint venture was warned further problems could cost it its contract.
The Davies Heat 'n Cool-Salmac Insulation partnership was warned after an audit found insulation in a Dunedin home was installed too close to a down-light.
EECA corporate communications team manager Vicki Connor said the contractor fixed the problem and rechecked the properties it worked on during the audit period.
No further issues were identified and it passed a subsequent audit but, despite meeting expectations, the company was still registered as having been issued a warning, she confirmed.
Some installers and auditors believed the process was "overly strict".
Each property needed to comply with more than 100 points on the audit sheet and missing one point, no matter how minor, was counted as a fail.
EECA had commissioned an independent review of the audit system.
Due for release in September, the review should help find a practical system that could reflect the quality of the installation and ensure work was safe, she said.
The warnings policy would also be reviewed.
It might be appropriate to have warnings lapse after a set period, if the installer's record remained satisfactory, she said.
Davies Heat `n Cool EECA contract manager Della Hopkins confirmed her company worked the contract in partnership with Salmac Insulation.
Davies installed heating systems, and Salmac installed insulation.
The partnership enjoyed working on the initiative and had no problem with the audit process.
She would not be drawn on the fairness of the warning system, but said the companies had a "positive outlook" based on talk of the review.
The companies had no further comment.
EECA yesterday confirmed Invercargill company SouthTile was warned for work done on a Southland home last year.
EnergySmart, a Wellington organisation with an office in Dunedin, was warned for work on a property in Lower Hutt last year.
Both passed recent audits.
More than 50,000 homes have been retrofitted with insulation since the scheme started a year ago.
About 2400 Otago homes were retrofitted by May.
How audits work
- Installation companies certify their own work.
- An independent auditor checks about 10% of properties for EECA.
- The auditor addresses hazards and installers get 48 hours to fix them permanently.
- Quality issues, such as gaps in the insulation, have to be fixed within 20 working days.
- Problems are fixed at the installer's expense.
- They get an official warning for serious problems, such as safety issues.
