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‘Boiler tax’ sparks customer refund debate

The delay of the Clean Heat Market Mechanism policy to April 2025 has caused uncertainty for consumers, as some boiler manufacturers implemented a 'boiler tax' from January 2024

The delay of the Clean Heat Market Mechanism (CHMM) policy until April 2025 has caused concern among UK consumers, particularly as some boiler manufacturers increased prices from January 2024, known as the ‘boiler tax.’

The CHMM policy aims to improve home energy efficiency for carbon emission reduction, focusing on promoting ground and air source heat pumps.

Manufacturers may face fines for not meeting government-set heat pump installation targets, resulting in higher prices for consumers.

Andy Kerr, Founder and Chief Executive Officer of BOXT, said: “There has been a great deal of uncertainty caused around the implementation of the CHMM for both customers and installers.

“This is why BOXT made the decision to freeze our prices in January, choosing to not pass on the manufacturer’s ‘boiler tax’ increases to our customers whilst we waited to hear the final government decision, unlike many others in the industry who followed the manufacturers lead in pricing hiking.

“We welcome the government’s announcement to give clarity on the implementation deadlines. We have installed thousands of boilers for our customers since January without passing the boiler tax increase onto them.

“We know that every penny counts in the current cost of living crisis, which is why we hope that the boiler manufacturers will look at ways to pass the increase back to those who have purchased boilers since the start of the year.

“For consumers who have had their boiler installed by other companies, they should rightly question whether the amount they have paid, included the boiler tax and if so, if they are entitled to a refund.”

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