Accreditation schemes view deal as competition
In last week's newsletter from the Institute of Domestic Energy Assessors (IDEA), Steve Roberts, an active Steering Group member rumoured to soon become Director, announced an "exclusive accreditation" deal with ECMK which now threatens to weaken the Institute's access to other accreditation schemes.
In the announcement, Steve Roberts writes:
"With many members approaching the time for renewal of their accreditation we thought that we should put forward an alternative option that would be attractive to our members. Consequently, we are pleased to announce that we have now reached agreement with ECMK Ltd.for an exclusive accreditation offer to IDEA members." (sic)
He goes on to explain how, because of the "downward pressure" on EPC fees, and the need for Domestic Energy Assessors (DEAs) to "mitigate their costs", the Steering Group:
searched the market place for an accreditation body that would not only offer a financially beneficial scheme exclusively to IDEA members but who were also prepared to be flexible and develop the scheme in conjunction with IDEA rather than just a “take it or leave it” approach.
"ECMK met those criteria", he concludes.
Searching the market place - Who was asked?
It has since emerged, however, that the IDEA did not search the market place comprising of just nine accreditation schemes at all, this website can reveal.
Other schemes, on hearing the news, are now viewing the Institute's "exclusive" deal as a competitive move which looks certain to undermine its reach and influence amongst the bodies that police the industry.
Philip Salaman, Managing Director of Quidos Accreditation Scheme, was clear when asked if they were approached by the IDEA: "No", he said.
Brian Scannell, Managing Director of NHER, confirmed they had not been approached either, adding: "[We are] a little surprised; it's not what you would normally expect of an institution."
Future relations
When asked if the deal would affect NHER's relationship with the institute going forward, Brian said: "It's impossible for it not to, in some ways, affect our relationship because they are effectively tied up with a competitor".
As for Quidos, Philip Salaman answered with his own question: "What relationship?".
Although no one was available to comment officially from the other accreditation bodies in time for publication (including ECMK), a senior staff-member of one scheme told me he was not aware of any approach by the IDEA, adding that he thought the move, "odd".
Level playing field
Commenting further on the decision to 'get in bed' with ECMK, Brian said: "They have made that decision for their own reasons - I honestly don't know what they are - I presume, it's in part, to try and get a good deal for their members, and that's fine. But if that was the case you would expect they would have approached all of the accreditation schemes."
A point echoed by Philip Salaman: "You certainly don't expect an independent institute to tie "exclusive" deals with a single accreditation scheme, and then expect everyone excluded to believe they can be independent and objective, do you?". Adding: "We would happily consider any approach from representative organisations to look at, say, a member discount scheme or something, but obviously, the benefits have to be presented on a level playing field."
"Of course it will affect any future relations - It has to."
I didn't order this!
According to the newsletter, the deal with ECMK is a result of a poll conducted on the IDEA' internet forum which asked: "Should IDEA become an accreditation body?".
Of the votes cast, the majority were in favour.
However, the deal - which was rumoured to be in advanced negotiations even before the forum poll closed - does not, in fact, establish the Institute of Domestic Energy Assessors as an accreditation body at all, as Brian notes: "A couple of hundred people said 'yes', but instead of them becoming one, they've done this deal with ECMK".
"I think it's a question of: What do you want IDEA to be? If they want to become an accreditation scheme, fine, but recognise that that means they are competing in a commercial market" he warned.
Members without a vote
It has now come to light that not all IDEA members knew of the poll: Despite receiving £20,000 in sponsorship from HES last year - and commission income from the Home Information Packs (HIPs) members sell and pass-through to Hip2Go - the Institute never bothered to send out any letters to members who had opted not to "receive email from administrators", according to an answer the Chief Executive gave to Home Inspector Forum member, vectistim, who was not notified of the vote.
The decision to bind the institute to an agreement with ECMK was based on the votes of just 10.9% of the 1564 DEAs the Chief Exec claims to have as members. It has not been revealed how many members were notified of the poll.
As detailed below, it would require 20% of members - over 300 people, nearly double votes cast in the poll - to call for the decision to be reviewed at an Extraordinary General Meeting (EGM).
Unconstitutional - "A company without members"
Serious doubts are now also being raised over the powers the Steering Group might have to sign deals on behalf of the Institute, according to Dawn Pillans, a qualified solicitor now working as a consultant through Dawn2Dusk which specialises in contracts and Terms & Conditions for HIPs and EPCs.
She has discovered it would require 20% of members to challenge what she claims is an "unconstitutional action". "It's a tricky situation for members", she said.
"Having read the Constitution, it would appear the Steering Group had no power to do this deal on behalf of the 'institute'. However, according to Companies House records, the Institute is set up as a company without members. Therefore, if the company's Memorandum of Association allows it, then Directors can do the deal with, or without, 'member' approval!"
She added: "If members now wish to overturn that unconstitutional action, 20% of the members have to write in calling for an EGM [Extraordinary General Meeting] to review this action. That is 300 members based on IDEA's declared membership of 1500."
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