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The Government has announced its decision to delay the implementation of the Clean Heat Market Mechanism (CHMM), which was due to start next month.
It has said it will reconsider the scheme in April 2025, which is after the next general election, according to a statement issued by the Department for Energy Security and Net Zero.
Boiler manufacturer Baxi issued a statement following the announcement: “We fully support a delay to the scheme’s roll out and will continue to help the Government with the development of a policy which works for consumers and industry alike, and remain committed in our support of the Government’s stated net zero ambition.
“As we have consistently stated, we will remove the surcharge, added to sales of new residential boilers since January 1st 2024, as soon as possible if the scheme is confirmed as delayed, and will work with our distributors to return any surcharge that we’ve already collected.
“The scheme’s delay is clearly good news for consumers and we applaud the Government’s recognition that the CHMM, as intended for 1st April 2024, would result in hugely significant penalties for manufacturers, simply for not selling enough heat pumps.
“A one-year delay will give Government and industry the necessary time to monitor changing consumer interest and demand in heat pumps, and the impact of the Government’s generous Boiler Upgrade Scheme (BUS) grant of £7,500 per household. A one-year delay would also give us more time to do our part in growing the population of qualified installers able to support this important transition away from gas boilers as the default means of providing heat and hot water to homes in the UK.”
It was previously reported that the scheme was set to be ditched by the government.
The CHMM, labelled the “boiler tax”, was designed to increase the implementation of low-carbon heat pumps by fining manufacturers if they fail to hit targets. This included fining the manufacturer for every boiler they installed above that target, with this ramping up each year.
