APRIL 2024 | VOLUME 62 | ISSUE 3
CHMM delay triggers refund on recent boiler price rises
Many installers and contractors are set to benefi t from the government‛s decision to delay the enforcement of the Clean Heat Market Mechanism by receiving a refund on the added cost to boilers purchased from January this year.
Responding to the delay to the Clean Heat Market Mechanism (CHMM), City Plumbing and Wolseley have announced that they will provide customers with a refund to the added cost that was applied to any boilers purchased since the beginning of the year. Refunds will range from £95- £120 per boiler, depending on the manufacturer. The CHMM, which has now
been delayed until 1st April 2025, mandated that manufacturers of fossil fuel boilers must sell a percentage of heat pumps proportional to their fossil fuel boiler sales. This resulted in an increase in the price of many boilers from 1st January, with most of the major manufacturers passing on the cost of the so called ‘boiler tax’ to customers. City Plumbing says that it is
working with the industry’s leading boiler brands to offer customers a refund onto their account for the difference in
price that was applied due to the increase. Contact will be made with all customers to update them with details of the refund process. Account customers will receive notifi cation of how refunds will be automatically processed, while cash customers will receive information about a simple process to enable them to claim the refund. Adam Foy, chief commercial
officer at City Plumbing, comments: “Customers have lots to keep track of in this ever-changing landscape as we transition to low temperature heating and more renewable technologies. Keeping things fair and straightforward for our installers is fundamental to how we do business at City Plumbing, which is why we’ve been working closely with all the leading boiler manufacturers to create a process for refunds for the additional cost that was applied, and ensuring this process is quick and easy in
order to give the best possible customer experience.”
Open letter The government’s decision to shelve the CHMM prompted Wolseley to issue an open letter confi rming that it will also off er refunds to customers.
John Hancock, Wolseley Group
chief operating officer, wrote: “We are pleased to confi rm that we have reversed these CHMM price increases. You can also expect to receive a refund for any CHMM related price increases on Worcester Bosch, Baxi, Vaillant and Ideal boilers incurred from January. We are hopeful that this will enable you to recompense your customer, as the CHMM was never intended to impact consumers, and we do not seek to profi t from its application.” While potentially providing
a financial boost to boiler installation companies, the delay to the CHMM has not been
universally welcomed by the heating industry, with concerns that it will hinder the growth of the UK’s heat pump market. Reacting to the news, David Cowdrey, director of external affairs at the MCS Foundation, says: “It is extremely disappointing to see that the government has postponed one of the most important policies for getting the UK off fossil fuel heating. The government needs to immediately set out plans for how it intends to fi ll the huge gap in heat pump plans that they have just created. We need clear and consistent policy more than anything, and without that the UK’s target of installing 600,000 heat pumps a year by 2028 is in serious jeopardy.” Speaking on behalf of the Heat Pump Association, CEO Charlotte Lee says that it is hoped that the delay may ultimately have a positive benefi t: “Whilst this does not provide the certainty industry desperately needs, it does off er an opportunity for the government to deliver functioning processes in a transparent manner to enable the mechanism to work. This delay also provides time for the government to lay the required Statutory Instruments to introduce the policy. “We will continue to work closely with the government to support the introduction of the CHMM in due course and call on them to use this time to take meaningful action to rebalance the price of electricity relative to gas, so the lowest carbon heat is the lowest cost heat, to further support the acceleration of decarbonised heat.”
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