It is widely expected that the Clean Heat Market Mechanism which the Government planned to launch in April, will now be scrapped, paving the way for boiler manufacturers to continue installing gas and oil boilers over heat pumps without penalty.
The scheme was to have imposed fines on boiler makers who were not meeting their targets of heat pump installations. Last month the manufacturers responded by increasing their prices, arguing that the target were unachievable and they were covering themselves ahead fines they claimed were inevitable.
The speculation that the government will bow to industry lobbying has provoked a torrent of criticism from those who see this as another retreat from much-needed net zero targets.
Doug Parr, Greenpeace UK Chief Scientist said on X (formerly Twitter): ‘Very bad, imo more significant than UK Govt rolling back petrol car phaseout date.
‘Nothing now to push UK electrification of heating, leaving home heating dependent on volatile fossil fuel’
Jess Ralston, analyst at the Energy and Climate Intelligence Unit (ECIU), said: ‘If energy independence is the Government’s priority, policies that lower our gas demand, like this one, should be top of the list. Any delay to the move towards electric heat pumps would worsen our energy security by keeping us tied into gas for longer, which will increasingly come from abroad as the North Sea continues its decline. New licensing won’t shift the dial on that.
‘It would also be a disastrous signal to send to the heat pump industry which has been gearing up for the policy’s introduction in just two months’ time and may jeopardise investments that companies are already making in the UK’s heat pump industry. More screeching U-turns for the energy industry is not great when we’re increasingly competing for investment with international markets that are pressing on with net zero as a route to energy security, including rapidly rolling out heat pumps.
‘The gas boiler lobby has already been called out for underhand tactics. The Secretary of State herself has described this threat from the gas industry as price gouging. Ultimately the consumer loses out when we’re left more dependent on gas markets – everyone who pays an energy bill knows that from the past two years.’
I have been investigating the installation og a heat pump, and have had various quotes. One of these was from Scottish Gas /British Gas. The quote was for £15000 . Even if I received the maximum grant ( not assured) of £7500, I would have £7500 to pay. For the same installation in England, same kit, same company, I would pay £10000, and if a maximum grant only £5000. British Gas explained the price difference as costs due the the supplier being in Aberdeen. Forgive me, but that’s just round the corner. So whilst the grant in EW &W is lower, the overall cost, like for like , is much less. Why?
Ultimately what broke the deal, was that the surveyor insisted that all pipework, valves , and radiators would have to be replaced to function correctly, despite only being six years old, and all floors lifted again etc to do the work. If other installers aren’t doing that, are they installing sub-standard systems ? Are the customers being sghort changed ?
Irrespective of the gas vs heat pump issue, customers need to be given accurate and impartial advice and fair treatment.