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Clean Heat Market Mechanism delayed until 2025

The UK Government has announced a delay in implementing the Clean Heat Market Mechanism until April 2025, prompting varied responses from stakeholders.

Jess Ralston, an Energy Analyst at the Energy and Climate Intelligence Unit, criticised the move, suggesting it favours large boiler manufacturers and hampers progress toward energy independence.

Jess Ralston said: “This is another backwards step for the UK’s energy security. As long as we rely on gas boilers, we’ll increasingly have to import gas from abroad as the North Sea continues its inevitable decline.

“By pushing to delay the scheme, the boiler companies imposing their ‘boiler tax’ claim to be on the side of consumers, but Citizens Advice is clear that scrapping the scheme would ‘hurt’ households leaving them vulnerable to volatile international gas prices.

“Will the boiler companies now give back their boiler tax they have already imposed despite the scheme not having started and now being delayed?”

Mike Foster, Chief Executive Officer of the Energy and Utilities Alliance, welcomed the delay, seeing it as a political manoeuvre aimed at trapping future administrations, particularly Labour.

Mike Foster said: “This decision is clearly political, not about heating policy. The government have set a trap for a future administration, which according to the polls is likely to be Labour, knowing the boiler tax from 2025 is likely to be around £200.”

Juliet Phillips, Programme Leader at E3G, pointed out the contentious nature of the Clean Heat Market Mechanism, which faced opposition from the fossil gas lobby.

Phillips urged the government to promptly lay legislation to dispel speculation about the scheme’s fate.

Juliet Phillips said: “Last week, Lord Callanan confirmed that the scheme wouldn’t be scrapped, but today it’s been confirmed that there will be a one year delay to its introduction.

“The government must move ahead with laying the legislation as soon as possible – without this, there will be continued speculation that the mechanism has been quietly killed.

“We hope to see the scam “boiler tax” price hike that manufacturers applied removed now they have won this concession, putting an end to the alleged price gouging.”

Kit Dixon, Head of Policy and Regulation at Good Energy, said: “The government claims it wants to provide certainty and confidence, but the sad reality is that it’s simply kicking the can further down the road.

“We should be moving further and faster in tackling climate change but, again, all we’re seeing is a steady stream of policies being watered down or delayed.

“The government needs to wake up and recognise the urgency of the situation.”

Energy Live News
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This article first appeared on Energy Live News, an award winning news service. Their mission is to give you balanced news, analysis, commentary of energy from their dedicated team of quality journalists and production staff.
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