SNIPEF Members Update: The Controversial “Boiler Tax”

September 29, 2023

The UK government's recent Clean Heat Market Mechanism (CHMM) has sparked notable debate in the heating industry. Aiming to enhance the uptake of heat pumps, the scheme obligates major boiler manufacturers to sell a designated percentage of heat pumps or face financial penalties. This is seen as an endeavour to reduce the UK's reliance on gas boilers, which currently account for around 86% of households and significantly contribute to greenhouse gas emissions.

However, leading boiler supplier Worcester Bosch warned that adhering to the scheme's quotas might increase gas boiler costs by £300, terming it a de facto "boiler tax". Carl Arntzen, Chief Executive of Worcester Bosch, further highlighted the risk of substantial financial strain, potentially pushing prominent boiler manufacturers towards insolvency.

These concerns stand in stark contrast to the government's viewpoint. Officials argue that the CHMM's objectives are critical for carbon reduction. The Department for Energy Security and Net Zero commented that the scheme's targets are achievable, asserting that manufacturers won't face penalties nor need to hike boiler prices.

While the outcome remains uncertain, SNIPEF members must be informed and prepared for the unfolding changes in the heating market landscape.

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