Latest news with #MikeFoster
Yahoo
19-05-2025
- Business
- Yahoo
The return of the ‘boiler tax'
Households are facing the threat of a new £40 'boiler tax' as Labour consults on plans to raise heat pump targets for manufacturers – despite waning demand from consumers. Targets will be ramped up to as high as 10pc of boiler sales under proposals by Ed Miliband, who resurrected the controversial scheme last month despite fears it would push up the price of gas boilers. The Clean Heat Market Mechanism (CHMM) threatens fines of up to £500 for each heat pump manufacturers failed to sell below a government-set target, currently at 6pc. Analysis of installation figures in the past 12 months shows demand is 'flatlining', threatening the Energy Secretary's ambition of seeing 600,000 heat pumps fitted every year from 2028. Experts said the price of a typical gas boiler would rise by £40 as a result of the penalties. Monthly installations of air-source heat pumps have fluctuated between 4,000 and 5,800 in the 12 months to April, according to MCS, the installers' accreditation body. The Energy Department maintains installations have risen by a quarter since last year, but Mike Foster, of the Energy and Utilities Alliance lobby group, said 'the trend line, which averages out the 12 months but also suggests in which direction the level of installs is going, is flatlining'. He added: 'The Clean Heat Market Mechanism (CHMM), which spawned the 'boiler tax', is a bad policy. Always was and always will be. It does nothing to stimulate demand for heat pumps, which is what is lacking. 'Appliance manufacturers will make products that sell, that's just basic commerce. Fining British businesses because consumers don't want a product they make is simply nonsense, and nothing changes that. 'It's like fining the local butcher because people aren't eating enough greens.' Before it was shelved by the Conservatives, the CHMM threatened fines of up to £3,000 for each heat pump manufacturers failed to sell. Manufacturers argued the targets were unachievable due to low demand for the green technology, and responded by raising the price of gas boilers by as much as £120 to cover the cost of fines. However, Gillian Cooper, of Citizens Advice, accused manufacturers of penalising households with higher prices despite having 'no evidence to suggest targets would be missed'. She said: 'Instead of meeting heat pump targets that aim to reduce people's energy bills, boiler manufacturers may once again choose to penalise consumers with price hikes. 'The Clean Heat Market Mechanism was brought in to ensure companies do what's needed to reduce our exposure to volatile gas prices. Companies are threatening to pass fines they could receive for missing targets onto consumers – despite no evidence to suggest these targets would be missed. 'The last time manufacturers did this, many were left out of pocket. This must not be allowed to happen again.' The backlash prompted the Tories to abandon the so-called 'boiler tax' ahead of the general election last year, despite calls from MPs to scrap the levies altogether. In September, industry sources warned that Labour was readying itself to reintroduce the CHMM. And in November, Mr Miliband announced a scaled-back version of the scheme with reduced fines and lowered targets. Since April, manufacturers have faced fines of £500 for each heat pump they fail to sell to meet the target. The Government is now proposing increased targets of between eight and 10pc from next year. Manufacturers are also said to be frustrated that the fines are paid directly to the Treasury, rather than used to encourage flagging uptake. Martyn Bridges, of Worcester Bosch, said: 'We were informed by officials that year one of the CHMM scheme was a benchmark year, to see if the policy had any impact on the uptake of heat pumps. 'Therefore, it's very disappointing to see year two targets being consulted on just 23 working days after the start of year one of the scheme. 'It would have made more sense to wait until year one of the scheme was at least nine or 10 months old so its impact could be sensibly assessed.' A government spokesman said: 'To suggest the UK heat pump market is not growing is categorically false. Demand continues to grow, with figures from the MCS showing that installations have increased by 25pc in the first three months of this year, when compared to last year. 'The Clean Heat Market Mechanism, which has only been in place since April 2025, is setting realistic sales targets, as we work hand-in-hand with industry to support the transition to clean heating for years to come. 'We are also making heat pumps more affordable by providing £7,500 towards the cost through the Boiler Upgrade Scheme and have recently announced plans to remove planning constraints to make them even easier to install.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Epoch Times
02-05-2025
- Business
- Epoch Times
High Costs Still a Barrier to Heat Pump Uptake, Price Unlikely to Go Down, Experts Say
Experts say the high cost of installing heat pumps remains a significant barrier to adoption, and the technology is unlikely to become much cheaper in the future. Mike Foster, CEO of the Energy and Utilities Alliance (EUA), told The Epoch Times that the high cost is partly because of the complexity of converting a home from a combi boiler system to one that is electric. He added that the price of the heat pump unit itself 'is never going to realistically become cheaper than it is,' as the technology is inherently more complex than that of a traditional boiler. British Gas The government has said that switching from a gas boiler to an electric heat pump could save homeowners £100 a year on their energy bills, when used with a 'smart tariff' which requires a smart meter being installed. Foster noted that smart tariffs 'are not the most common tariffs that people use' and the running cost of a heat pump remains an issue, particularly with electricity currently being around four times the price of gas per kilowatt-hour. Boiler Upgrade Scheme Designing an all-electric heating system involves more than just installing the main air-source unit. Homeowners also need a large hot water tank and bigger radiators to distribute heat effectively, as heat pumps operate at lower temperatures than traditional gas boilers. Homeowners may also need better insulation. Related Stories 11/22/2024 6/26/2024 There is help for people wanting to switch to low-carbon heating, through the government's A poll by the Heating Trading Networks also 'We have to acknowledge that heat pumps do reduce your greenhouse gas emissions, and we should be looking to do that. But the price that people are willing to pay towards that goal is not £13,000. That is the challenge that government has to try and address,' Foster said. Benefitting Wealthier People Foster said that heat pump sales were up last year, thanks in large part to the BUS. However, he said that the scheme is 'fundamentally flawed' because 'only the well off can afford to take part in the scheme and get the benefit of the taxpayer funded subsidy.' The EUA chief cited the previous government's assessment of the upgrade scheme, which Harry Wilkinson, head of policy at The Global Warming Policy Foundation, said that heat pumps are still not being chosen by most consumers. He told The Epoch Times: 'It's worthy of reflection of how green policies often benefit the wealthiest. This is a wealth transfer to very wealthy households. The government has to be thinking about whether that's a sensible use of its funds.' No 2035 Boiler Ban Domestic heating accounts for 14 percent of the UK's carbon emissions, and the government is encouraging homeowners to switch to electrified heating as part of its efforts for the UK to meet its net zero emissions pledge by 2050. The challenges of meeting this target appear to have been reflected by policy changes in the past year, such as the government In January, Energy Secretary Ed Miliband confirmed there would not be a Similarly, the Scottish Government cited affordability in its decision to Foster said these recent shifts showed that there is 'greater realism about the challenge of domestic heat and how you decarbonise it.' He noted that policy always evolves as circumstances change—both domestically and nationally—and that greater clarity on the government's stance will probably come when the Warm Homes Plan is published later this year. Make Electricity Cheaper Wilkinson said that when done right, heat pumps can reduce emissions and save money. However, those outcomes would become more viable if the government focused on the cost of electricity, rather than paying people to buy boilers, he said. 'The cost of electricity is pushing people away from heat pumps,' Wilkinson said. Wind turbines adorn the landscape in the Southern Lake District, in Lambrigg, England, on Nov. 25, continued: 'There has to be a realisation about the fact that we'll be using gas boilers for a very long time to come. There is a growing sense that getting the cost of electricity down is a key factor, and one policy makers should be focusing on.' Foster added that policy makers should diversify energy plans, which could include bio-methane, hydrogen, and hydrogen blending. 'It makes the potential of achieving net zero more realistic than the more dogmatic approach where everything should be electric. But that's for policymakers to determine,' he said. Blair's Criticisms Earlier this week, former Prime Minister Sir Tony Blair appeared to deviate from Labour Party policy, when he argued that the current climate approach 'isn't working.' In the forward to a 'In developed countries, voters feel they're being asked to make financial sacrifices and changes in lifestyle when they know that their impact on global emissions is minimal,' he wrote. File photo of former Prime Minister Sir Tony Blair during an interview on March 27, 2023. Victoria Jones/PA Wire The TBIC later Responding to a question over the apparent criticism from Blair, Prime Minister Sir Keir Starmer 'Tony Blair is absolutely aligned with what we are doing here. These are the jobs and the security of the future,' he said. Changing the System This week, the Department for Energy Security and Net Zero (DESNZ) Measures also being considered include new purchase and ownership models which could spread the cost over a number of years or allow consumers to lease them for a monthly fee. Minister for energy consumers Miatta Fahnbulleh said the proposals would 'give working families more choice and flexibility to pick the low-carbon upgrades that work best for them.' The department said the BUS had seen its best month since the programme opened, with 4,028 applications in March, up 88 percent on the same month last year. The Epoch Times contacted the DESNZ for comment, but the department did not respond by time of publication.
CBS News
20-03-2025
- Business
- CBS News
Yankee Stadium announces new menu items for 2025 season
The 2025 Yankee Stadium dining menu has a little bit of everything for fans. This year, four new vendors are joining the lineup, along with returning ones. "We feel the product and concessions and clubs here is super important. So we have a good variety of New York-based companies, but also partners of ours and Ballpark Classics so we have a great assortment," said Mike Foster, the director of premium services for Legends Hospitality. Some of the newcomers this season include: Brooklyn Dumpling Shop, Caribbean Food Delights, Nuchas Empanadas, and Sweet P Bakery. All of whom will serving up what they believe will be a home run for fans. Sabrina HoSang, the CEO of Caribbean Food Delights, said being able to serve at Yankee Stadium has been decades in the making. "We couldn't be more excited to have our product in the stadium. Jamaican beef patty. It's a spicy beef patty. And we also have the cocktail size, which will be served with a slaw and a jerk barbecue aioli," HoSang said. Brooklyn Dumpling Shop CEO Jeff Galletly shared not only is he a lifelong Yankees fan, but his father is one of the team's biggest fans. Galletly shared what he and his shop will have on their menu. "We have buffalo chicken dumpling, kung pao chicken dumpling, and our number one seller, Korean barbecue rib eye dumpling. So they're paired with some delicious sauces. We're going to be throughout the stadium," Galletly said. Also excited to join the team are Nuchas Empanadas. Its CEO, Ariel Barbouth, shared Nuchas will provide an Argentinian flair to fans at the games. "We have a traditional Argentine ground beef empanada, antibiotic-free. And this is the inspiration for our line. We also have a chipotle chicken, which is a twist on the chicken a little more Mexican style. And we have a vegan pinto bean, which is spicy and it's vegan and it has a lot of cilantro and lime and it's delicious," Barbouth said. Last but not least, Sweet P Bakery will be serving cookies to fans with a sweet tooth during the game. Sweet P is a nonprofit bakery with a mission of offering employment to adults with disabilities. During Wednesday's media concession preview tasting, Sweet P bakers Hetty Marion and Zach Bender shared their top flavors. "Well, my favorite is the jumbo snickerdoodle. It's a snickerdoodle, but in the middle of it, it has dulce de leche, so you're getting a caramel bite out of it," Marion said, "For me right now, I would say cookies and cream because of the cream filling inside of the cookies, which makes it heavenly," Bender said. Some of the returning vendors on the stadiums 2025 list include Fuku, Lobel's and Streetbird all adding some new items on their menus. The stadium will also be pouring up some new drinks, like the "Bronxtail" which is a Grey Goose vodka with blueberry liqueur and lemonade, and the "Ginfielder" which is Hendrick's Gin mixed with lime juice, cucumber and mint. To find out a complete list of the Yankee Stadium 2025 Concessions, click here . You can email Erica with Bronx story ideas by CLICKING HERE .
Yahoo
19-03-2025
- Business
- Yahoo
The real reason why heat pumps are eye-wateringly expensive
The cost of fitting a heat pump has risen by a third in six years despite generous government grants – leading critics to accuse installers of profiteering. Ministers want 600,000 heat pumps fitted each year by 2028, and hoped to cut the real term costs of installing one by 25pc compared to 2021. But, the price of fitting an air-source heat pump actually increased by 33pc, from £9,686 to £12,951 in the six years to January 2025, according to Telegraph analysis of data from the trade standards body, MCS. This is despite the fact the Government has since introduced grants worth up to £7,500 for each household – which were paid directly to installers. Industry experts blamed a host of factors for the spike such as the rising cost of copper and energy, while a government spokesman said the figures did not account for inflation. But even after factoring in inflation, the cost of installing a heat pump has still risen £700 – despite promises from successive governments it would fall in real terms. It has led critics to accuse installers of cashing in on the grants which allowed them to pass more costs on to consumers. Dramatic charts show that between March and April 2022, the same month the first Government grant was introduced, the cost of installing a heat pump suddenly rose by 25pc to £1,465 per kW. It meant a 4kW heat pump cost almost £6,000 while a large 15kW device was upwards of £21,000. MCS claimed this jump was due to a difference in sample size, as well as the end of the renewable heating incentive – the precursor to the grant. Mike Foster, of the Energy Utilities Alliance trade body, told The Telegraph: 'When subsidies increase, we always see sales volumes follow, that's just basic economics. But it is also likely that price competition is less keen and as a result average costs drift upwards. That's just basic human nature. 'Given it is larger companies primarily benefitting from the Boiler Upgrade Scheme, having a dedicated workforce fitting large numbers of heat pumps, we should see average costs of installations falling – indeed that is what the Government predicted would happen – it's called the 'learning curve'. 'But the data suggests this is not happening anywhere near fast enough. Either the learning curve isn't working for heat pump installations, which would be unusual, or companies are taking higher profit margins on each job. Both require closer examination by Ministers.' Successive governments have desperately tried to entice households into switching to a heat pump by making them cheaper. In November, ministers announced that a planned clean heat market mechanism – which would see manufacturers fined for not selling enough heat pumps – was to be drastically scaled back. The 'boiler tax', as it became known, had prompted manufacturers to raise the prices of gas boilers to offset fines they claimed were unavoidable due to the lack of demand for heat pumps. These price increases were reversed after Labour's announcement. The Boiler Upgrade Scheme (BUS), introduced by the Tories in 2022, offered households £5,000 grants towards the installation of a heat pump. In 2023, the grant was upped to £7,500, prompting a 75pc surge in applications for the grant, the Government said. Grants are paid to an MCS-certified installer, not the household, making it unclear whether or not the grant has driven down costs for homeowners switching to a heat pump. These policies combined were intended to bring costs down, and did initially spark a price war between manufacturers. British Gas unveiled a heat pump which cost £2,999 in 2023, just £1 cheaper than the £3,000 price offered by Octopus Energy But despite the price of physical models falling, the total bill for having a heat pump installed continues to rise. Overall, MCS figures also show the average cost per kilowatt hour of installing a heat pump rose by 57pc to £1,579 in the six years to January. The MCS said its data included BUS grants, and therefore was not necessarily the price the consumer paid. However, the body admitted that due to high living costs, the impact of the BUS on the overall cost of installation had been 'minimal'. A heat pump industry source added that installation costs had been further driven up by the rising price of copper, which has more than doubled in the last five years. Guidelines set out by the Competition and Markets Authority state that installers must not mislead consumers about price by using deceptively low figures to attract customers. Consumer law applies 'throughout the consumer journey', and therefore includes any quotes given by an installer. Mr Foster said: 'Heat pumps are a globally traded product, just like gas, and as such are outside the control of governments. 'That is why it was always wrong to make wild claims that costs would fall in the UK as a result of increased sales, and positively reckless for certain energy companies to promise price parity with gas boilers.' The Telegraph approached a number of well-known heat pump installers for comment, but did not receive a reply. The Government pointed out that a report by the National Audit Office and Energy Department found the cost of installing a heat pump had fallen by 6pc in real terms from 2021 to 2023 – the window in which the grants were first introduced. A spokesman said: 'There are consumer rules in place for heat pump installers regarding quotes and costs, and we're providing £7,500 towards the cost of a heat pump, with families able to save around £100 a year by them using a smart tariff effectively.' Ian Rippin, chief executive of MCS said: 'Since the grant for air source heat pumps was increased under the BUS in October 2023, MCS data shows that the total installation cost for the technology has risen directly in line with the retail price index at 3.7pc. 'The heat pump installation market is highly competitive with new entrants joining all the time, as shown by the number of MCS installers that are certified for air source heat pumps, which has risen by 15pc in the last 12 months. 'As the heat pump market continues to grow, it's crucial that everyone has confidence in the technology – and increasing the number of certified installers who are delivering installations to industry-recognised standards is a key part of that.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
19-03-2025
- Business
- Telegraph
The real reason why heat pumps are eye-wateringly expensive
The cost of fitting a heat pump has risen by a third in six years despite generous government grants – leading critics to accuse installers of profiteering. Ministers want 600,000 heat pumps fitted each year by 2028, and hoped to cut the real term costs of installing one by 25pc compared to 2021. But, the price of fitting an air-source heat pump actually increased by 33pc, from £9,686 to £12,951 in the six years to January 2025, according to Telegraph analysis of data from the trade standards body, MCS. This is despite the fact the Government has since introduced grants worth up to £7,500 for each household – which were paid directly to installers. Industry experts blamed a host of factors for the spike such as the rising cost of copper and energy, while a government spokesman said the figures did not account for inflation. But even after factoring in inflation, the cost of installing a heat pump has still risen £700 – despite promises from successive governments it would fall in real terms. It has led critics to accuse installers of cashing in on the grants which allowed them to pass more costs on to consumers. Dramatic charts show that between March and April 2022, the same month the first Government grant was introduced, the cost of installing a heat pump suddenly rose by 25pc to £1,465 per kW. It meant a 4kW heat pump cost almost £6,000 while a large 15kW device was upwards of £21,000. MCS claimed this jump was due to a difference in sample size, as well as the end of the renewable heating incentive – the precursor to the grant. Mike Foster, of the Energy Utilities Alliance trade body, told The Telegraph: 'When subsidies increase, we always see sales volumes follow, that's just basic economics. But it is also likely that price competition is less keen and as a result average costs drift upwards. That's just basic human nature. 'Given it is larger companies primarily benefitting from the Boiler Upgrade Scheme, having a dedicated workforce fitting large numbers of heat pumps, we should see average costs of installations falling – indeed that is what the Government predicted would happen – it's called the 'learning curve'. 'But the data suggests this is not happening anywhere near fast enough. Either the learning curve isn't working for heat pump installations, which would be unusual, or companies are taking higher profit margins on each job. Both require closer examination by Ministers.' Successive governments have desperately tried to entice households into switching to a heat pump by making them cheaper. In November, ministers announced that a planned clean heat market mechanism – which would see manufacturers fined for not selling enough heat pumps – was to be drastically scaled back. The 'boiler tax', as it became known, had prompted manufacturers to raise the prices of gas boilers to offset fines they claimed were unavoidable due to the lack of demand for heat pumps. These price increases were reversed after Labour's announcement. The Boiler Upgrade Scheme (BUS), introduced by the Tories in 2022, offered households £5,000 grants towards the installation of a heat pump. In 2023, the grant was upped to £7,500, prompting a 75pc surge in applications for the grant, the Government said. Grants are paid to an MCS-certified installer, not the household, making it unclear whether or not the grant has driven down costs for homeowners switching to a heat pump. These policies combined were intended to bring costs down, and did initially spark a price war between manufacturers. British Gas unveiled a heat pump which cost £2,999 in 2023, just £1 cheaper than the £3,000 price offered by Octopus Energy But despite the price of physical models falling, the total bill for having a heat pump installed continues to rise. Overall, MCS figures also show the average cost per kilowatt hour of installing a heat pump rose by 57pc to £1,579 in the six years to January. The MCS said its data included BUS grants, and therefore was not necessarily the price the consumer paid. However, the body admitted that due to high living costs, the impact of the BUS had been 'minimal'. A heat pump industry source added that installation costs had been further driven up by the rising price of copper, which has more than doubled in the last five years. Guidelines set out by the Competition and Markets Authority state that installers must not mislead consumers about price by using deceptively low figures to attract customers. Consumer law applies 'throughout the consumer journey', and therefore includes any quotes given by an installer. Mr Foster said: 'Heat pumps are a globally traded product, just like gas, and as such are outside the control of governments. 'That is why it was always wrong to make wild claims that costs would fall in the UK as a result of increased sales, and positively reckless for certain energy companies to promise price parity with gas boilers.' The Telegraph approached a number of well-known heat pump installers for comment, but did not receive a reply. The Government pointed out that a report by the National Audit Office and Energy Department found the cost of installing a heat pump had fallen by 6pc in real terms from 2021 to 2023 – the window in which the grants were first introduced. A spokesman said: 'There are consumer rules in place for heat pump installers regarding quotes and costs, and we're providing £7,500 towards the cost of a heat pump, with families able to save around £100 a year by them using a smart tariff effectively.' Ian Rippin, chief executive of MCS said: 'Since the grant for air source heat pumps was increased under the BUS in October 2023, MCS data shows that the total installation cost for the technology has risen directly in line with the retail price index at 3.7pc. 'The heat pump installation market is highly competitive with new entrants joining all the time, as shown by the number of MCS installers that are certified for air source heat pumps, which has risen by 15pc in the last 12 months. 'As the heat pump market continues to grow, it's crucial that everyone has confidence in the technology – and increasing the number of certified installers who are delivering installations to industry-recognised standards is a key part of that.'
