Energy And Utilities Alliance (EUA) Discusses To End The Boiler Upgrade Scheme Policy

The energy trade body, the Energy and Utilities Alliance (EUA) has called for the Boiler Upgrade Scheme (BUS) to end, likening it to a ‘sick dog that needs to be put down.’

EUA’s Chief Executive, Mike Foster, made this call following another poor take-up of subsidized heat pumps in January and after Parliament was told that any underspend on the scheme cannot be rolled forward to the following year, but will instead be clawed back by the Treasury.

Policy flaws

Mike Foster said, “This policy has always been flawed. Part subsidizing a heat pump installation with a £5000 bung leaves the remaining costs, an average of an extra £8000, to be met by the consumer.”

He adds, “Only the well-off need applies, which in the middle of a cost-of-living crisis with fuel poverty levels rocketing, is entirely the wrong priority.”

Increased costs

Subsidies like this tend to drive up costs; it is a technology that slashes them"

Mike Foster stated, “With energy bills set to climb by another 20 percent in April, pumping money into the hands of those who wish to go green, rather than helping those who are forced to choose between heating and eating, is immoral.”

He continues, “The idea that subsidizing 30,000 UK heat pumps would drive down the cost of a global product, with 2 million sold across the EU last year, is frankly for the birds. Subsidies like this tend to drive up costs; it is a technology that slashes them.”

BUS outrage

Mike Foster adds, “The BUS is failing to meet its targets, falling way short. It should be paying out 2,500 vouchers a month, in January it paid out just 920. And because the money is tied up in the scheme, it can’t be used to fund sensible measures like insulation that permanently reduce bills and carbon emissions. Insulation can also be targeted at the least well-off, making it a fairer policy too.”

He concludes, “BUS is like a sick dog; it is best for everyone concerned if it is put down. And when they are ready to consider alternatives, we are more than happy to help devise a scheme that works and delivers lower bills and carbon emission reductions.”