Mark Krull, director for Logic4training & LCL Awards, has responded to the new report from the European Heat Pump Association (EHPA): New European Heat Pump Market Report, highlighting the need to solve UK’s electricity and gas price disparity.
Mark said: “We need to be careful that in calling for a reduction in electricity costs, the levies don’t shift onto gas customers, many of whom aren’t in a financial position to fit heat pumps. Some will be having to make difficult decisions this winter on whether they heat their home or put food on the table.
“The reason for the fuel price differential is complicated and, in my opinion, suggesting it’s solely down to green levies over-simplifies the situation. The cost of bailing out failing energy companies and levies relating to the Feed in Tariff are substantial. We don’t want to end up in a situation where millions of gas customers are forced into fuel poverty because of an increase in general taxation or – even worse – their gas bills. Some energy companies, Octopus and E.on for example, offer their customers special heat pump tariffs, which helps to reduce the ‘spark gap’.
“The EHPA’s report makes interesting reading. The correlation between the cost of electricity and heat pump uptake is clear, but the last thing we need is a knee-jerk reaction which could impact some of the poorest in society.
“The government is currently reviewing how the sector works with tariffs and levies Review of Electricity Market Arrangements (REMA), let’s hope the outcomes of this review are fair and equitable for all energy-users.”