From 1st January, consumers may face price hikes of up to £120 per gas boiler, according to statements from several manufacturers.
The Clean Heat Market Mechanism (CHMM), set to roll out in April 2024, is a government initiative targeting enhanced energy efficiency in homes to meet carbon emission goals.
Manufacturers, including Worcester Bosch, Baxi and Vaillant, have confirmed impending price increases across their boiler ranges, citing potential fines linked to CHMM regulations.
The CHMM mandates manufacturers to earn ‘credits’ through heat pump installations, with fines of £3,000 per missing credit if targets are not met, creating financial incentives for compliance.
Individual targets for manufacturers vary, reflecting the number of gas and oil boilers they sell. Failure to meet these targets triggers fines, prompting adjustments in pricing strategies.
The policy’s primary goal is to encourage the adoption of heat pumps and hold manufacturers accountable for contributing to carbon emission reduction efforts.
However, concerns have emerged about the potential impact on UK households, particularly those with lower incomes, facing significant price increases for entry-level boiler models.
Mel Butler, Founder of BOXT, said: “Whilst the move to cleaner heating in the UK is something we are absolutely supportive of, the people who are ultimately paying with this policy are homeowners.
“In particular, lower income households looking to upgrade their old boiler to a new, more energy efficient one to help save on energy bills, are now facing as much as a 10% price increase on entry level models.
“Our worry is that this will create a substantial financial barrier for some homeowners and could result in them opting for a less efficient or reliable boiler with a shorter warranty to help reduce the initial outlay, but is likely to ultimately cost them more in the long run in maintenance, repairs and potentially having to replace it again sooner.”
