HVP Magazine – EUA labels latest BEIS heat pumps plan “Soviet-style production planning”
EUA LABELS LATEST HEAT PUMP PLAN “SOVIET-STYLE PRODUCTION PLANNING”
The Energy and Utilities Alliance (EUA) has warned the government that their plans to mass-market heat pumps to British homeowners are tantamount to “Soviet production planning” that ignores market demand.
Under the plans of the Ministry of Economy, Energy and Industry (BEIS), which officials relayed to the heat pump industry last week, a legal obligation will be placed on boiler manufacturers to make alternative products such as heat pumps that compete with gas boilers. If the manufacturers fail to sell the required quantities of alternative products, the company will be penalized.
The proposals, which will be part of the government’s heating and buildings strategy, due to be released in June, will be tabled to ensure the government meets its target of 600,000 heat pump systems per year from 2028.
Mike Foster, EEA chairman of the board, says the proposals are more about supply than demand. “I have already heard this suggestion as a production planning based on the Soviet model, in which the supply of a product takes precedence over the generation of demand. In this case, we may get the heat pump equivalent of unwanted Lada cars that consumers don’t want and won’t buy. This is a crude attempt to manipulate the domestic heating market and it will not work. “
He continued, “BEIS is trying to move consumers to heat pumps by taking away the alternatives, but it is important that consumers have choices about the technologies in their homes.”
The association says the UK boiler manufacturing sector has been a great success story in recent years, employing thousands of workers in facilities across the north of England and the Midlands in places like Hull, Preston, Derbyshire and Worcester, claiming that the government’s proposals this is likely to be a major blow to the sector.
“The UK boiler industry is a manufacturing success story that created the combi boiler, which has already done so much to improve household fuel efficiency and reduce household carbon emissions.
“It would be wrong to classify the industry as deaf and blind to climate change issues. Huge amounts of R&D resources go into the development of hydrogen boilers that can achieve the government’s net-zero targets without manipulating the crude oil market and without denying consumer choice. “