Eon boss: Delaying gas boiler ban will drive up net-zero costs

Any further delay in phasing out gas boiler sales will simply serve to increase the upfront costs of low-carbon alternatives, the chief executive of Eon UK has warned.

Michael Lewis told Utility Week that the government should be even bolder than it has previously indicated and introduce the ban from 2030, aligning with the target for petrol and diesel cars.

Lewis was responding to national press reports that the government is now moving away from its previously mooted cut-off point of 2035 for gas boiler sales.

It is part of an overhaul of the heat and buildings strategy, which was due to be published this month but has now been shelved until the autumn.

The press reports also indicate the government has scraped plans to give households an annual payment to offset rises in gas bills. It is thought that this will now only apply to lower-income families.

Lewis said: “With the right policy framework in place, we’re confident the cost of a heat pump can be reduced by up to half over the coming years.

“A government commitment now that gas boilers will not be available for sale after 2030 – in the same way petrol and diesel cars will not be available after that date – is the best way to give industry the signal to start investing today, which will drive down costs as well as bringing new jobs and manufacturing to Britain.

“Any delay to that timetable will simply delay the benefits of the transition to net zero and ultimately increase the up-front cost.”

Elsewhere the chief executive of disruptor brand Outfox the Market and Fischer Future Heat, Keith Bastion, called it a “dispiriting delay”.

He said: “For those of us determined to embrace and provide clean energy – aware that we are working against the clock – it is hard to accept this delay to the crucial phasing out of gas boilers. So often, we’ve seen promises that renew hope, only to be left dispirited by alterations, delays and apparent backtracking.

“We accept that the cost of hydrogen boilers and heat-pumps can be prohibitive to some consumers. If the government is truly concerned by this, we wonder if there are other solutions that would have assisted the consumer? Tax benefits, consumer incentives and home insulation grants that will improve the fabric of all UK homes, could have helped to avoid this new and dispiriting delay.”

While the heat and buildings strategy is unlikely to appear before the autumn, Utility Week sources say the hydrogen strategy is still set to be published this summer.

This could include proposals for a hydrogen levy on energy bills.

Gary Smith, GMB Union general secretary, said he was worried it would hit the most vulnerable.

Smith said: “Securing a long-term future for the gas industry and its workforce with a political approach that prioritises low-carbon solutions like hydrogen-ready boilers for home heating is the best way of securing an affordable and familiar choice for households, keeping the heating on and meeting our climate ambitions.

“Politicians are only beginning to wake up to the harsh realities that they need to take the public with them if we are going to reach our net-zero ambitions by 2050.

“We welcome plans that ensure hydrogen gets greater investment – but hitting hard up families with a levy is not the way to go.

“Ministers need to get on now with releasing its hydrogen strategy, end the speculation on what’s in it and finally show us their ambition, providing certainty for our industries to invest and lead the way.”