Call for heat pump tariff discounts

Posted at January 30, 2024 » By : » Categories : News » Comments Off on Call for heat pump tariff discounts

The Heat Pump Association (HPA) has presented a proposal for heat pump tariff discounts, addressing the challenges posed by elevated electricity prices impacting the domestic heating market in Britain.

The initiative is designed to counteract distortions caused by levies on electricity bills and create a more affordable pathway to greener heating.

The proposed discount, starting at 5p/kWh in 2024/25-2025/26 and increasing to 6p/kWh in real terms by 2026/27, is positioned as an interim measure until broader electricity market reforms are realised.

The HPA emphasises the significance of aligning energy price signals with decarbonisation goals and anticipates that the discount will enhance the financial appeal of heat pumps, facilitating a transition towards more sustainable heating practices.

HPA Chief Executive Officer Charlotte Lee said: “Reducing the price and electricity relative to gas is the sector’s number one policy ask.

“Action must be taken to change the energy price signals so that the lowest carbon heat is the lowest cost heat, which in turn will accelerate the deployment of heat pumps, and support the government’s decarbonisation goals.”

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