By Paul Homewood
h/t Ian Magness
I did warn you!!
Homeowners face being hit with a “boiler tax” as manufacturers attempt to offset the cost of the heat pump rollout.
Worcester Bosch has announced the price of all its gas boilers will increase by £120 in the new year, while Vaillant is also preparing to increase its prices by £95.
The Government aims to install 600,000 heat pumps a year from 2028, but Worcester Bosch said it had “no option” but to raise the price of boilers as the UK market “does not have the scale” to meet government targets.
It said it took the decision following the implementation of new rules designed to incentivise heat pump installations which will result in companies who undershoot government-mandated quotes being fined.
Worcester Bosch said “to cover the costs of these fines and remain in business” it had “no option but to raise the prices of the boilers we sell to meet what is in effect a boiler tax”.
As part of its net zero drive to reduce carbon emissions, the Government will introduce its “Clean Heat Market Mechanism” (CHMM) in January 2024.
The price increases are being implemented to offset government plans to fine manufacturers for failing to meet sales quotas for heat pumps from next year.
The scheme aims to incentivise manufacturers to sell more heat pumps by requiring that 4pc of all gas boiler sales are matched in volume with heat pump sales.
New builds, which are required by law to have a heat pump from 2025, are exempt from the scheme.
However, industry forecasts suggest around half of heat pumps set to be installed next year will be in newly built houses, and will therefore not count towards the sales quota.
It is estimated that 80,000 heat pumps will be installed in 2024, but only 40,000 of these will be retrofit installations.
Based on a boiler market of 1.5 million homes, government plans would require manufacturers to install 60,000 heat pumps in its first year – 50pc higher than the forecast market size, Worcester Bosch said, adding “penalties are therefore inevitable”.
This target would increase to 90,000 installations in the scheme’s second year, and to 450,000 in its fourth. For each heat pump a manufacturer fails to sell under that target, it will be fined £3,000.
Worcester Bosch said the targets were “clearly unachievable within the timescales allowed”, and that manufacturers would have no choice but to “pass these fines onto the market in the form of a CHMM levy”.
https://www.telegraph.co.uk/money/net-zero/homeowners-hit-boiler-tax-pay-for-heat-pump-drive/
This is only the start. As the heat pump target rises, the fines will get bigger.
And we cab expect exactly the same thing to happen with the price of ICE cars next year.
The government is giving us a choice. But heat pumps and EVs, which we cannot afford. Or pay a tax.
Meanwhile the DESNZ is disgracefully trying to gaslight us:
How on earth do they expect boiler manufacturers to cover the cost of these fines, if they do not pass them onto customers? It’s like expecting garages not to pass on increases in fuel duty.
As for the targets being “ realistic and fully achievably”, they are taking the public for idiots. The public do not want to buy the useless things, so how can boiler manufacturers sell them?
via NOT A LOT OF PEOPLE KNOW THAT
December 15, 2023 at 08:33AM
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