18 July 2024
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Heat pump installations need to increase significantly if the UK is to meet its emissions targets, says the Climate Change Committee. Picture: Shutterstock
The cost of electricity should be reduced to encourage people to move away from fossil fuel heating and install alternatives such as heat pumps, according to the latest guidance from the Climate Change Committee (CCC).
In its 2024 Progress Report to Parliament, the CCC suggests that some of the levies and taxes currently applied to electricity should be switched to gas, and warns that unless that without action in this and other key areas, the UK is in danger of missing key climate targets on the road to Net Zero by 2050.
It points out that around 10% of existing homes in the UK will need to be heated by a heat pump, compared to only approximately 1% today.
Although heat pumps are more efficient than gas boilers, in terms of units of energy used, this is not reflected in the average bill because electricity is significantly more expensive. The CCC says this is partly down to levies applied to electricity for things such as home insulation. By switching some of these additional costs to gas, it believes it would create a more level playing field.
The CCC’s first recommendation says:
Make electricity cheaper. Removing policy costs from electricity prices will support industrial electrification and ensure the lower running costs of heat pumps compared to fossil-fuel boilers are reflected in household bills.
The report also calls for the new Labour government to reverse what it believes are damaging steps taken by former Prime Minister Rishi Sunak. These include exemptions to the phase out of new fossil fuel boilers, due to come in from 2035, and predicted to cover about a fifth of UK homes.
The recommendation says:
Reverse recent policy rollbacks. Remove the exemption of 20% of households from the 2035 fossil-fuel boiler installation phase-out, address the gap left by removing obligations on landlords to improve the energy efficiency of rented homes and reinstate the 2030 phase-out of new fossil-fuel car and van sales. The damage of these rollbacks can be limited by quickly reinstating these policies.
Professor Piers Forster, interim Chair of the CCC, said: “The country’s 2030 emissions reduction target is at risk. The new Government has an opportunity to course-correct, but it will need to be done as a matter of urgency to make up for lost time. They are off to a good start. Action needs to extend beyond electricity, with rapid progress needed on electric cars, heat pumps and tree planting.
“The transition to Net Zero can deliver investment, lower bills, and energy security. It will help the UK keep its place on the world stage. It is a way for this Government to serve both the people of today and the people of tomorrow.”
The CCC 2024 Progress Report to Parliament
- The CCC is an independent, statutory body established under the Climate Change Act 2008. Its purpose is to advise the UK and devolved governments on emissions targets and to report to Parliament on progress made in reducing greenhouse gas emissions and preparing for and adapting to the impacts of climate change.
