Truss and Sunak urged to make ‘common sense’ decision on anti-British Industry energy policy

Responding to press reports that Conservative Leadership candidate Rishi Sunak has pledged to scrap the Boiler Upgrade subsidy to well-off households, the Chief Executive of Energy and Utilities Alliance (EUA) Mike Foster has now called on both the candidates to stand up for British manufacturers and scrap the proposed Whitehall imposed “market mechanism”.

The market mechanism is a proposal from BEIS officials to impose a quota upon British industry, to force them to make heat pumps or face a penalty of up to £5000 for each unit that falls short of targets set out by the Soviet-style policy.

Mike Foster said:

“It is refreshing to hear that Rishi Sunak agrees with EUA that the boiler upgrade subsidy should not be a priority for spending; giving 30,000 well-off households a £5000 bung to fit a heat pump does nothing to help the vast majority who are struggling with their bills.

“The scheme, which will cost the taxpayer £150 million a year, could provide free loft insulation for 300,000 homes, permanently reducing their heating bills and saving carbon too. As the former Chancellor suggests, this is a better use of scarce resources.

“Now we urge both him and his opponent, Liz Truss, to take a close look at the ridiculous ‘market mechanism’ scheme, which will fine British manufacturers for disobeying Whitehall officials who want to flood the market with lower-quality foreign heat pumps at the expense of British-built boilers.

“Somebody needs to put a stop to this madness. Both the boiler upgrade bung and the Soviet-style sales quota are a result of Boris Johnson’s arbitrary 600,000 a year by 2028 heat pump sales target, which needs to be scrapped. Heat pumps cost more to run than gas boilers and incur a massive £10,000 upfront cost too.

“The alternative, hydrogen-ready boilers are waiting to be given the go ahead by government, but they are delaying their roll out in a desperate attempt to sell more of Boris Johnson’s heat pumps.”