The Clean Heat Market Mechanism (CHMM) will be coming into effect this year as decided by the Government. This has no effect on you directly, however manufacturers are now under obligation to meet specific targets within a year or face a fine. This is to attempt to reduce the amount of emissions produced from homes.
The obligations are that manufacturers need to meet targets on the sale of heat pumps relative to the sales of their gas and oil boilers. In the first year of the scheme (April 2024-March 2025) manufacturers will need to sell heat pumps equivalent to 4 per cent of boiler sales in the UK, rising to 6 per cent in year two. If these targets are met, manufacturers will earn ‘credit’ and those who miss the targets will be fined £3000 per missing credit.
‘This will result in manufacturers being fined tens of millions of pounds because the market simply isn’t big enough at present to hit targets quotas being demanded’
Martyn Bridges, Director of Technical Services, Worcester Bosch
‘Punishing manufacturers because consumer demand isn’t there is just perverse.’
Mike Foster, CEO, Energy and Utilities Alliance