SNIPEF

We recently contacted members to share details of our letter to the Secretary of State for Energy Security and Net Zero, the Rt Hon Ed Miliband MP regarding clarification on the future of the Clean Heat Market Mechanism (CHMM).

In that letter, we outlined the challenges faced by the plumbing and heating profession due to uncertainty surrounding the CHMM and urged the government to provide clarity and adopt a balanced approach that considers affordability and industry readiness.

Recent announcements, via an addendum to the CHMM consultation by the Department for Energy Security and Net Zero, confirm that changes have been made to the scheme, reflecting a more collaborative and balanced approach. These include:

Reduced penalties: The government has confirmed that penalty payments for manufacturers missing heat pump targets under the CHMM will be reduced. Previously set at £3,000 per credit, the payment-in-lieu has been lowered to £500.

Timeline: The CHMM will still come into effect on 1 April 2025, leaving manufacturers just under four months to prepare. While this timeline was announced earlier this year, it is disappointing that the Government has provided limited notice for these amendments, even considering the change in administrations.

Heat pump targets: Manufacturers will still be required to ensure that heat pumps constitute 6% of boiler sales during the first year of the CHMM (April 2025 to March 2026).

We are aware of the positive commentary from manufacturers regarding these amendments to the CHMM. However, it remains unclear whether these changes will lead to increased boiler prices. We will reach out to manufacturers to gain clarity on their pricing plans and will share any relevant updates with you.

While we support the green agenda, SNIPEF continues to advocate for a balanced and realistic approach that aligns transition goals with what the public and industry can realistically afford. The reduced penalties and additional preparation time are positive steps, but we will monitor the situation closely to ensure these changes work effectively for our members.