Heat Pump Association reacts to clarity on Clean Heat Market Mechanism.
Reacting to the publication of the Government response to the Clean Heat Market Mechanism Consultation, Charlotte Lee, CEO of the Heat Pump Association whose membership includes heat pump manufacturers which provide over 85% of the heat pumps in the UK said:
“We welcome the clarity provided by the publication of the Government’s response to the Clean Heat Market Mechanism and acknowledge the adjustments made to the scheme which include; a reduced penalty payment, the ability to carry forward a larger percentage of unmet obligations, introducing a consistent approach in the new build sector and not introducing a multiplier to penalise unmet targets.
Whilst the sector remains concerned about the impact of the scheme on the market given the lack of supporting policy enablers- such as addressing the imbalance between levies on gas and electricity bills to reduce the price of electricity relative to gas, we are committed to working pro-actively with Government and the Environment Agency to support a smooth implementation of the scheme.’
Notes to Editors:
The Clean Heat Market Mechanism is an obligation put on boiler manufacturers to ensure minimum quotas of heat pumps are installed, relative to their relevant fossil fuel boiler sales in the UK. LINK
Adjustments to the scheme’s design following consideration of responses received:
- A reduced penalty payment per missing credit down from £5,000 – £3,000
- The ability to carry forward a larger percentage of unmet targets- 35% rather than 25%
- Introducing a consistent approach in the new build sector by not counting new build boiler sales in the target
- Not introducing a multiplier to penalise unmet targets- multiplier of 1.2 proposed
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