11/12/2023
๐ โ๐๐จ๐ข๐ฅ๐๐ซ ๐๐๐ฑโ ๐๐ก๐๐ญ ๐๐จ ๐ฒ๐จ๐ฎ ๐ฆ๐๐๐ง? ๐ณ
๐๐ก๐ ๐๐ฅ๐๐๐ง ๐๐๐๐ญ ๐๐๐ซ๐ค๐๐ญ ๐๐๐๐ก๐๐ง๐ข๐ฌ๐ฆ (๐๐๐๐) ๐๐ง๐ ๐ก๐จ๐ฐ ๐ข๐ญ ๐๐๐๐๐๐ญ๐ฌ ๐๐๐ ๐๐ง๐ ๐๐๐๐ ๐ก๐๐๐ญ๐ข๐ง๐
๐๐ก๐๐ญ ๐ข๐ฌ ๐ข๐ญ? ๐ค
The Clean Heat Market Mechanism has come out of the recently approved Clean Energy Bill; The Government has launched the CHMM to try and speed up the adoption of heat pumps in UK homes. ๐๐จ๐ฎ ๐๐ซ๐ ๐ฉ๐ซ๐จ๐๐๐๐ฅ๐ฒ ๐ฅ๐๐๐ญ ๐ฐ๐จ๐ง๐๐๐ซ๐ข๐ง๐ - ๐ฐ๐๐ฅ๐ฅ ๐ก๐จ๐ฐ ๐๐จ๐๐ฌ ๐ญ๐ก๐ข๐ฌ ๐ข๐ฆ๐ฉ๐๐๐ญ ๐ฆ๐ - ๐ ๐ก๐๐ฏ๐ ๐ ๐๐๐ฌ ๐๐จ๐ข๐ฅ๐๐ซ ๐๐ง๐ ๐ ๐๐จ ๐ง๐จ๐ญ ๐ข๐ง๐ญ๐๐ง๐ ๐ญ๐จ ๐ฌ๐ฐ๐๐ฉ ๐ญ๐จ ๐ก๐๐๐ญ ๐ฉ๐ฎ๐ฆ๐ฉ๐ฌ ๐๐ง๐ฒ ๐ญ๐ข๐ฆ๐ ๐ฌ๐จ๐จ๐ง.
๐๐จ๐ฐ ๐ฐ๐ข๐ฅ๐ฅ ๐ข๐ญ ๐๐๐๐๐๐ญ ๐ฒ๐จ๐ฎ?๐ค
With the Government drive and incentive to push heat pumps into homes, the Government has decided to impose strict targets on all UK Gas Boiler Manufacturers (like Baxi, Ideal, Worcester Bosch etc) into installing a certain amount of air source heat pumps against how many Gas Boilers they install. Although Heat Pumps do have their positives they are not suitable for every home in the UK. They are cost efficient in well insulated or โnew buildโ type homes that have large radiators, solar panels or underfloor heating. Most of the older homes in the UK are not as well suited and it might result in an inefficient heating output.
In summary, for UK gas boiler manufacturers the CHMM requires that 4% of all gas boiler sales are to be matched in volume with heat pump sales. Failure to do this will result in a ยฃ3000 penalty/fine for every heat pump they fail to sell under the target.
๐๐จ ๐จ๐๐๐ฌ๐๐ญ ๐ญ๐ก๐ ๐ฉ๐๐ง๐๐ฅ๐ญ๐ข๐๐ฌ, ๐๐จ๐ข๐ฅ๐๐ซ ๐ฆ๐๐ง๐ฎ๐๐๐๐ญ๐ฎ๐ซ๐๐ซ๐ฌ ๐๐ซ๐ ๐ฎ๐ง๐๐จ๐ซ๐ญ๐ฎ๐ง๐๐ญ๐๐ฅ๐ฒ ๐ก๐๐ฏ๐ข๐ง๐ ๐ญ๐จ ๐ฉ๐ฎ๐ฌ๐ก ๐ญ๐ก๐ ๐ฉ๐๐ง๐๐ฅ๐ญ๐ฒ/๐๐ข๐ง๐ ๐จ๐ง ๐ญ๐จ ๐๐๐, ๐ญ๐ก๐ ๐๐ฎ๐ฌ๐ญ๐จ๐ฆ๐๐ซ. Baxi have stated that due to the Government Bill they are now having to charge a โClean Heat Market Mechanism Levyโ of ยฃ120 for every boiler they sell. Ideal Boilers an extra ยฃ110 per boiler. Worcester Bosch has already shared in the Sunday Times that the impact of the CHMM fines could mean a ยฃ120 increase even reaching up to a ยฃ300 increase on their gas boilers that would be passed on to the consumers, with CEO Carl Arntzen likening the policy to a โboiler taxโ.
๐๐จ๐ฐ ๐๐๐ง ๐ ๐๐ฏ๐จ๐ข๐ ๐ญ๐ก๐ ๐ข๐ง๐๐ซ๐๐๐ฌ๐? ๐
With the โBoiler Taxโ essentially coming into play on ๐๐๐ง๐ฎ๐๐ซ๐ฒ ๐๐ฌ๐ญ ๐๐๐๐,(in three weeks) if you know you are due a new boiler, your boiler is on its last legs and you are waiting it out until the new year before an upgrade - We would recommend getting your new boiler in now and save yourself from having to pay the imposed boiler penalties.