What is The Clean Heat Market Mechanism?

Published: 09 Feb 2024 ・ Read time: 4 mins
For those in the trade, the Clean Heat Market Mechanism is a hot topic of discussion. As the UK works towards reaching net zero by 2050, increasing new UK Government policies set for this journey are becoming more demanding. Yet, nowhere is this more evident than the demand placed on those in the heating and energy sector.
With much discussion surrounding the mention of the Clean Heat Market Mechanism, understandably people working in this industry are apprehensive about this new development. This is particularly so for those keen to know what the knock-on effects will be for the sector.
At City Plumbing, we’re committed to helping those in the trade navigate the net zero journey, working together with you to keep you informed every step of the way. Here, we offer a quick breakdown of what the Clean Heat Market Mechanism is, summarising everything we know so far. 

What is Clean Heat Market Mechanism?

Also referred to as CHMM, the Clean Heat Market Mechanism is a
UK government policy that will be implemented in April 2024. Brought on by the government's drive to hit net zero emissions by 2050, it’s been introduced to meet those ambitious energy-efficiency targets set out by Boris Johnson in 2019. 
Right now, the UK Government believes the country isn’t on track to meet those targets if we continue to move at our current pace. With the take-up figures for installing heat pumps slightly lower than anticipated, the Government feels the UK could do much more to match those countries where the heat pump market is thriving. 
So, one way it’s believed could help transform the heat pump sector is by providing the heating appliance industry with a stable and clear-cut policy framework. This should then enable them to scale up consumer purchases for heat pumps. And, it’s here where the Clean Heat Market Mechanism comes into play. 

Who Will The Clean Heat Market Mechanism Affect?

Initially, those hit by the CHMM are the manufacturers and suppliers in the heating sector. Under the CHMM policy, manufacturers that fail to meet the specified targets through their sales of heat pumps will be issued with a fine. 
To combat these anticipated fines, it’s become necessary to increase prices, namely through the sale of boilers. Commonly referred to now as the boiler tax or boiler levy, this increase will cover any potential charges should those heat pump targets not be reached.

What Does the Clean Heat Market Mechanism Mean for The Trade?

As the entire heating industry has no option other than to comply with CHMM guidelines, regrettably, this new policy will require all boiler manufacturers to increase their boiler prices in line with the new levy. 
This will take into account any boiler that’s delivered from the 1st of January 2024 onwards. As a result, those in the trade will see price increases on every brand of boiler, which will be added at the sole discretion of the manufacturer.
Image of a boiler installer

How City Plumbing Can Help The Trade 

As heating experts with vast expertise in this industry, City Plumbing is working with the trade to make the introduction of CHMM as smooth as possible. While we’re fully committed to working towards achieving net zero, we’re aware that both gas boilers and oil boilers are still in high demand and favoured by many homeowners. 
Heat pumps remain a long-term goal and are primarily behind the UK government's drive to boost the decarbonisation of the heating industry. But there's still some way to go and, coupled with a limited demand for heat pumps from homeowners and a lack of MCS-accredited heat pump installers available, boilers continue to play a significant role in how most homeowners heat their homes and water. 
City Plumbing continues to work with traders to supply good quality gas boilers, oil boilers, and superb energy-efficient A-rated boilers. Offering vast selections from brands across the board, we’ll keep providing fantastic value while helping traders stay on budget with their projects.
What’s more - we’ve partnered with GTEC to provide MCS-accredited training to installers looking to take advantage of the growing renewables sector. Currently, installers can claim £500 off the cost of Air Source Heat Pump training with GTEC and City Plumbing. 
For more information on how City Plumbing can help the trade transition smoothly towards net zero, get in touch with our plumbing and heating experts by visiting your local branch.

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