Electricity is too expensive to make heat pumps worthwhile, MPs have warned, as they urged the government to rethink environmental costs passed onto customers. The high cost of electricity compared to gas risk putting people off ditching their gas boiler for the cleaner alternative, which runs on electricity, the Environmental Audit Committee said. In a letter to Energy Minister Kwasi Kwarteng, Philip Dunne, chairman of the Environmental Audit Committee, said high electricity bills are a “significant barrier to heat pump adoption”. Electricity is around four times more expensive than gas because of costs passed onto the consumer from environmental programmes and social measures such as the Warm Homes Discount, which gives some households cheaper energy bills. These extra costs are not added to gas bills. Figures from Ofgem show that environmental and social costs make up 23 per cent of the average electricity bill and just two per cent of the average gas bill. Last month the committee heard calls from some witnesses to add carbon taxes to gas in order to incentivise switching. MCS, which certifies installers of renewable energy, said the government should price out gas and oil from the market by adding a carbon tax to fossil fuels used for heating.
Telegraph 21st Dec 2020 read more »
The cost of electricity could cause the rollout of heat pumps to fail, as the technology must be made affordable for consumers. With the cost of electricity roughly four times more expensive than gas, due to the government placing the costs of its low carbon policy with customers, adoption of the green heating alternative may struggle, according to a letter to energy minister Kwasi Kwarteng. Written by the Chairman of the Environmental Audit Committee (EAC), Rt Hon Philip Dunne MP, the letter reflects on the evidence heard by the Committee during its short inquiry on Technological Innovations and Climate Change: Heat pumps. The Committee was advised that reviewing the policy costs for gas and electricity could significantly improve the customer case for heat pumps, helping to make them cheaper than conventional gas boilers in a domestic setting.
Current 22nd Dec 2020 read more »