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Govt to continue to fund new oil-fired boilers and boiler replacement

02 August 2018

The End Fuel Poverty Coalition recently wrote to the Department for Business, Energy & Industrial Strategy (BEIS) Minister Claire Perry over concerns about its proposals to end support under the new Energy Company Obligation for oil-fired boilers.

The Coalition accepted that oil-fired boilers are not part a low-carbon future but thought that, in the short term, removal of support for them affect low-income, vulnerable and fuel poor households, especially in rural areas.

BEIS have now announced, in their response to the ECO3 consultation, that they will continue to allow new oil boilers to be installed under ECO3, though only under the 'Broken Boiler Cap' (of 35,000 systems per year equivalent). 

In addition, a 400% uplift will be available to provide support for the replacement of broken boilers (including oil-fired boilers) under the cap to low income, vulnerable and fuel poor households.  Without this uplift BEIS believes that homes with broken boilers many not receive the support from the scheme that they need.  

The coalition has also received a letter from Ofgem Chief Executive Dermot Nolan about preserving and extending the safeguard tariff.

While making no firm commitments at this stage, Dermot assures us that Ofgem are extremely mindful of the need to ensure that vulnerable customers continue to receive appropriate levels of protection - and are not disadvantaged - following the introduction of the forthcoming price cap.

Dermot has also agreed to meet with the Coalition to discuss this issue further after their statutory consultation is published on 23 August.