Homeowners face being hit with a ‘boiler tax’ of around £120 per boiler as manufacturers attempt to offset the cost of the fines imposed by Government to coercively push the heat pump rollout. The Telegraph has the story.
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 U.K. 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 4% 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.
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