Families replacing their gas boilers in the coming year will face a £120 green levy amid an escalating dispute between the government and the industry over the expenses associated with transitioning to clean energy.
Major boiler manufacturers in the UK plan to increase prices to offset the costs of a government scheme intended to incentivise the sale of more heat pumps. The manufacturers contend that ministers are effectively imposing a "boiler tax," causing concerns for individuals grappling with the rising cost of living. Critics argue that the imposed price hikes far exceed the actual costs companies would incur under the scheme.
An official complaint has been lodged with the Competition and Market Authority (CMA), urging an investigation into whether the increased charges constitute anti-competitive behaviour. Energy Secretary Claire Coutinho is also looking into the matter and is contemplating a representation to the CMA.
Scheduled to take effect in April, the Clean Heat Market Mechanism mandates that boiler manufacturers ensure heat pumps constitute at least 4% of their total annual sales. Failure to meet this target allows companies to purchase credits from other manufacturers exceeding their targets or face a £3,000 fine for each missed sale, with the quota set to increase annually.