A new report has warned that eco heat pumps could increase household energy bills by £95 a year under Labour Party Energy Secretary Ed Miliband's Net Zero drive. Mr Miliband had pledged that the green technology can “save families hundreds of pounds a year on their bills”.
According to the report, an average heat pump installed as part of a recent Government Net Zero scheme would cost a typical household £1,736 a year to run. This is £95 more than the estimated cost of running a condensing gas boiler, which stands at £1,641 a year.
Political Reaction to the Findings
Andrew Bowie MP, Shadow Energy Minister, criticised the Labour government, stating: “Labour are addicted to making people’s lives more expensive. The biggest problem the country has when it comes to energy is that we are in an electricity price crisis of Ed Miliband’s making.” He added: “Unless the Government gets serious about cutting electricity bills now, many of these taxpayer-funded schemes will saddle households with high ongoing running costs every single year.”
Industry Concerns Over Affordability
Mike Foster, chief executive of the heating industry trade body EUA, expressed concern: “At a time when household finances are stretched to breaking point, ministers should stop suggesting that heat pumps are a guaranteed route to lower bills — especially for the poorest families. The energy transition must be affordable, practical and use all sources of energy to keep bills in check otherwise consumers will reject the whole net zero agenda.”
Miliband's Vision for Clean Energy
Mr Miliband, the energy secretary, defended the policy, saying he wanted every household to benefit from clean energy: “We understand that clean energy can lower bills. We are seeing record demand for solar, record demand for heat pumps. We want this opportunity to be extended to everyone in our society.” He previously forecast that 1 million people would be lifted out of fuel poverty, with grants for insulation and clean energy for people on low incomes, and millions more would gain access to loans and subsidies to install heat pumps. “This is three times more public investment than the last government,” he said. “This is what great reforming governments do – they build homes, and they upgrade homes. This is what Labour governments have done. Look at who this government stands up for – ordinary working people.”
