BOILER MANUFACTURERS FACE COMPETITION INQUIRY OVER PRICE HIKES

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BOILER MANUFACTURERS FACE COMPETITION INQUIRY OVER PRICE HIKES – Investigation in to the home heating market to commence

The four largest gas boiler manufacturers face a competition inquiry after imposing price hikes of around £100 on customers to offset potential fines for missing clean energy targets, the government has confirmed.

In a move first reported last week, energy secretary Claire Coutinho has asked the Competition and Markets Authority (CMA) to investigate the home heating market.

It comes amid concerns over the response of Worcester Bosch, Vaillant, Ideal and Baxi, who between them control 90% of the market, to government plans to meet targets for electric heat pump sales or face fines.

In January, the companies added around £100 to the cost of new gas boilers, characterising it as a ‘boiler tax’ caused by the government’s approach.

Those targets have been now pushed back 12 months to April 2025 in a compromise that follows intense debate between ministers within the Department of Energy and Net Zero.

Under the Clean Heat Market Mechanism (CHMM), originally scheduled to begin next month, boiler manufacturers will have to sell a proportion of electric heat pumps, starting at 4% and rising to 25% by 2028. For every boiler by which they miss the target they will be fined £3,000.

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