The Department of Energy and Climate Change announced yesterday 54,578 vouchers under the Boiler Scrappage Scheme had been issued to households within the first six weeks of the project. In total, 125,000 vouchers were made available under the scheme, which is ultimately designed to reduce carbon emissions caused by the energy inefficient G-rated boilers thought to be installed throughout many households in the UK. Therefore, a little over 70,000 vouchers remain available under the Boiler Scrappage Scheme, which is worth around £28 million.

The level of interest attracted from households interested in availing of the scheme had initially surprised the Energy Saving Trust, which is responsible for administering the scheme. It was reported several weeks ago that the scheme’s popularity was such that thousands of applicants were forced to endure lengthy delays as a result of strained operations and limited resources at the Energy Saving Trust, which claimed to have received an average of 5,000 calls a day – almost 400,000 in total – at each of its regional advice centres. Clearly, the volume of interest in the Boiler Scrappage Scheme far outweighs its capacity to accommodate all potential applicants, however, the Energy Saving Trust has since doubled its staff numbers to more effectively cope with viable candidates. Ultimately, the news that over a third of all vouchers have been issued to households within the scheme’s first 6 weeks will be seen as a measure of its success.

Director of the Heating and Hotwater Industry Council, Roger Webb, agreed that: “The boiler scrappage scheme has injected new life into the domestic heating market. Installers are thrilled both existing and new customers are realising the benefits of this scheme and actually acting on the chance to replace their G-rated boilers. Normally a boiler purchase is a distress buy but customers are receiving their voucher and actually scheduling in an installation”. One reason for the unexpectedly high popularity of the Boiler Scrappage Scheme (at least at this early stage) is that all of the leading energy companies have moved to match the £400 on offer under the scheme, so total savings towards a more energy efficient boiler are now as high as £800.

Since the UK Government announced its Boiler Scrappage Scheme, which provides homeowners with £400 vouchers (one per household) to replace their existing G-rated boilers with A-rated alternatives, the plan has attracted praise and criticism in equal measure.

On the one hand, the Boiler Scrappage Scheme has been lauded as the answer to the nation’s domestic energy efficiency problems (at least where homeowners and central heating systems are involved) whilst, on the other, the scheme has been derided as too costly, impractical and largely pointless. Although opinion is usually divided on any measure introduced by an incumbent government, the Boiler Scrappage Scheme is coming under increased fire as its finer points are picked apart and analysed in detail. Therefore, it comes as quite a disappointment to the Government the scheme is now beset by extensive delays.

The organisation responsible for the administration of the Boiler Scrappage Scheme, The Energy Saving Trust, claimed last week its operations have been overwhelmed by an unexpectedly high demand from homeowners who wish to avail of the scheme. As of Monday last week, the trust had received some 160,000 calls in response to the scheme, which had been converted to approximately 36,000 applications. Unfortunately, there are only 125,000 vouchers available under the Boiler Scrappage Scheme, so it is somewhat obvious the trust would have been hit by a deluge of calls and applications in its earliest operative months. Nevertheless, whilst the Energy Saving Trust failed to anticipate such high demand, it has already implemented measures to ensure its backlog of applications is cleared.

A Spokesman for the Energy Saving Trust said: “People applying now should expect to receive their vouchers within 10 days. People who called earlier have not been forgotten about. The call centres are working their way through logged calls in chronological order”. The trust has also stated it has doubled the number of staff in its call centre to cope with the increased demand. Fraser Winterbottom, Chief Operating Officer, Energy Saving Trust, added the trust was some “three or four days behind” schedule, but would soon return to normal service.

The UK Government’s Boiler Scrappage scheme was released under the guise of helping to improve energy efficiency in the home. Although there is no evidence to suggest the scheme is unable to achieve this aim, there are growing concerns that, aside from assisting the environment and lowering energy bills (at least to a certain extent), the scheme will fail to attract interest from the majority of financially ‘poor’ households.

In fact, according to one of Britain’s best known plumbers, Charlie Mullins of Pimlico Plumbers, the Boiler Scrappage scheme is likely to prove more costly over time, which is especially critical for the country’s less wealthy customers.

Approximately 125,000 were thought to be able to take part in the Boiler Scrappage scheme, which offers customers a cash incentive of £400 for replacing their older, less efficient central heating boilers (it must be G-rated – i.e. has a pilot light) with more modern and energy efficient varieties (specifically, the condensing boiler). Unfortunately, replacing conventional boiler systems with condensing boilers can sometimes prove problematic in so much as they often need to be located in a different area of the home due to regulation changes and or physical differences in plumbing requirements. This process can prove to be a logistical nightmare in many cases and usually involves greater installation costs. As such, the £400 voucher to replace an old but functional boiler at a cost ranging between £1,000 and £2,500 already constitutes a poor financial incentive to make the change.

Another concern raised by the scheme, which has so far attracted interest from 16,000 or so households in the country, is the newer, more energy efficient condensing boilers are not as reliable as the outmoded conventional models. According to Charlie Mullins, older boilers would typically last up to 15 years or longer before requiring repair or replacement. In the case of new condensing boilers, however, Mullins argues his plumbers often find themselves replacing newer models after just 3 to 6 years. As reported in the Guardian, Mullins argued that the scheme could prove to be “financial madness” for many homeowners.

It is common knowledge domestic fuel bills have risen substantially over recent years and the trend is set to continue as new energy initiatives are set to be subsidised by consumers. It is also well-known wholesale fuel costs have dropped during this period, which means savings have not been passed on to consumers.

The UK Government has also urged the British public to conserve energy wherever possible in order to satisfy short-term carbon emission targets (this may also have something to do with decreased fuel supply and limited reserves). Unfortunately, after experiencing one of its coldest winters in more than half a century, domestic energy consumers in the UK are expecting record high energy bills this month.

According to experts, the average energy bill for January will hit £200 this month, as consumers have been forced to crank up their central heating thermostats in order to survive the Arctic weather. With no clear sign the adverse weather is going to improve over the coming weeks, it is possible the problem will be further compounded before thermostats can be turned down a notch or two. Although isolated cases are far worse for some than others, such as 60-year old Tony Stamford’s upsetting situation – he suffers from cerebral palsy, diabetes and is partially deaf yet has been left without central heating for 3 months as Basildon Council awaits a new boiler – it would seem most people are experiencing similar problems that require certain remedies.

In this exceptional period of high fuel bills and cold weather, it is worth remembering there are a number of measures in place that help people make their homes more comfortable and affordable. Homeowners in England can take advantage of a Government grant of up to £3,500 to improve the heating and insulation in their homes. Similar schemes exist in Northern Ireland, Wales and Scotland, where up to 10,000 more families are also due help through the Scottish Government’s Energy Assistance Package. Homeowners can also take advantage of the UK Government’s boiler scrappage scheme, whilst people who fall behind with their fuel bills can sometimes receive emergency grants or loans from The British Gas Energy Trust.

Climate change is a real and present danger, with current predictions estimating potentially irreversible climate change may occur within a matter of decades. As such, green or eco-friendly measures are constantly being developed, assessed and implemented to create a world in which man no longer acts as the catalyst of his own demise. In terms of altering the effects of global warming, such measures must be adopted by entire populations if any real benefit is to be derived from them.

Therefore, taking steps to address the eco-friendliness of homes is important when viewed in the wider context of the war against global warming. Although cars, aeroplanes and even cattle emit significant quantities of so-called greenhouse gases each year, the typical UK home also chips away at the Earth’s protective ozone layer; in fact, British homes make up 25% of the nation’s emissions. One of the most effective ways in which homes can be made greener is to invest in adequate insulation, which includes loft insulation, cavity wall insulation and double glazing or even triple glazing – doors can also be more effectively sealed in order to combat draughts.

Smart Meters will be common installations throughout homes in the UK by 2020 but, for those who do not wish to wait that long, energy monitors and readers can be purchased that show the usage of electricity in the house, which will help guide consumers on where and how best to conserve energy. Free monitoring tools such as the British Gas EnergySmart meter are useful for providing more detailed analysis. Homeowners are also advised to cash in their older boilers for brand new shiny models under the Government’s new boiler scrappage scheme, whilst other measures that can be employed include purchasing water butts for the garden to store non-potable water, installing dual flush lavatory systems and replacing old shower heads with water-saving alternatives.

It appears the unusually cold weather now affecting Britain is to linger for sometime to come as the primary cause of the snow, ice and sub-zero temperatures can be traced to strong negative atmospheric pressure in the Arctic.

As recorded by the Arctic Oscillation Index, this negative atmospheric pressure can heavily influence weather systems across the Northern Hemisphere and it is worth noting current readings are at their lowest point since 1950. As such, Britain is experiencing a transitory yet prolonged period of unusually cold weather. Unfortunately, the fact that the unseasonably cold weather is likely to continue will be of little comfort to domestic energy suppliers, who have been instructed by the National Grid to cut their own gas usage.

The request by the National Grid was prompted by its own ‘gas balancing alert’, which is raised when demand outstrips production. In this case, consumer demand for gas neared record levels in December 2009 and it is quite likely such a trend will continue into the new year for as long as the cold weather remains. In fact, gas demand on Wednesday was predicted around 447m therms, which falls just short of the record high of 449m therms set in January 2003. It is obvious increased and prolonged demand of gas will eventually cause supply problems where production is lower, which is why Britain has a plentiful stock of gas. Or does it?

According to the Shadow Energy Secretary, Greg Clark, Britain has sufficient reserves of gas to last just 8 days at the current rate of consumption. This figure can be contrasted with a report in the Guardian online news service back in November 2009 that stated supplies could last up to 16 days at average rates of consumption. To put these figures in further context, it’s thought France and Germany have enough gas supplies to last 91 and 73 days respectively. Therefore, it would appear Britain has entered a period of uncertainty regarding gas supplies that is only likely to pass when changes in Arctic atmospheric pressure are experienced. Until then, Britain could be facing gas shortages before much longer.

The news comes in the same week the government announces its Boiler Scrappage Scheme, an initiative to reduce the amount of inefficient boilers installed in England’s homes. Full details of how to apply for the scheme can be found here: How To Apply for the Boiler Scrappage Scheme

The Chancellor’s pre-budget report for 2010 has an obvious hint of pre-election bias about it, at least so far as it could have taken a tougher stance on the national debt.

However, as previously discussed in this blog, the pre-budget report represents good news for domestic energy consumers in so much as the Boiler Scrappage Scheme will allow up to 125,000 homes to benefit from a cash incentive of £400 for replacing old central heating boilers with a newer, more energy efficient condensing boiler. Clearly, this is likely to benefit energy consumers who can, according to the Energy Saving Trust, expect to save around £235 per year on gas bills.

Furthermore, gas boilers are thought to account for around 60% of the carbon emissions from an average UK home, so it is entirely sensible to address the efficiency of such boilers in order to meet environmental targets. Notwithstanding this, is the Boiler Scrappage Scheme’s cap of 125,000 households enough to make a significant difference to the environment? In consideration that there are approximately 4.5 million households in the country that could apply for the £400 cash incentive, it is quite clear the cap fails the scheme’s potential in so far as it only accounts for 2.7% of eligible households. Nevertheless, the boost in new boiler installations will help to stimulate the economy whilst it is also predicted to cut carbon dioxide emissions by 1.26 tonnes per home per year.

Other green measures outlined in Alistair Darling’s pre-budget report include the feed-in tariff scheme, which will start in April 2010 and aims to guarantee the minimum value of power returned to the National Grid. Indeed, the feed-in tariff scheme is expected to earn households that generate their own green electricity through wind and solar power around £900 per year on average. Moreover, this figure would not be subject to taxation. The Chancellor also reserved an additional £200 million for existing energy efficiency initiatives, which include cavity wall and loft insulation, that would benefit a further 75,000 homes nationwide.

The UK government confirmed plans for its long awaited boiler scrappage scheme in its pre-budget report yesterday. The scheme is the culmination of a 10 Downing Street petition started by Mick Willaims of Williams & Co., a plumbers’ merchant in the south of England and led by Sian Berry’s Reheat Britain campaign .

The scheme will help secure thousands of jobs within the boiler and plumbing industry whilst saving thousands of pounds of wasted domestic energy and thousands of tonnes of carbon dioxide emissions every single year.

The scheme applies to boilers rated at 70% efficiency and less (’G’ rated) and provides for a £400 incentive for the homeowner to upgrade their ageing and fuel hungry boilers. The scheme is expected to commence in early 2010 with an estimated allowance of 125,000 households. There are currently over 4.5 million inefficient boilers in the UK which will be eligible for the rebate, we’ve compiled a handy boiler scrappage rating check to see if you may qualify for the rebate.

UPDATE:
The scheme has now been launched, please see our guide: How To Apply for the Boiler Scrappage Scheme

The Reheat Britain Campaign is an initiative devised by Mick Williams of Williams and Co., a plumbers’ merchant in the South of England, aiming to scrap old and inefficient boilers in Britain. Inspired by the UK Government’s car ’scrappage’ scheme, Reheat Britain hopes to turn British domestic central heating into an altogether more efficient and environmentally friendly industry.

Indeed, the Reheat Britain Campaign claims around 4.5 million old and inefficient boilers are in active service throughout the UK. Such boilers are thought to be rated at less than 70% efficiency, although the precise figures are significantly skewed by various factors, including service history, condition and state of installation and maintenance.

It is thought millions of tonnes of carbon dioxide emissions can be eliminated by replacing these 4.5 million old boilers with modern condensing gas boilers and controls. Furthermore, old boilers are notoriously fuel hungry, so domestic energy users living with such dinosaurs, which were built in an age that did not fully recognise the importance of global warming, will most likely be losing considerable amounts of money on them. The Energy Saving Trust has argued that around £200 could be saved each year on annual fuel bills by upgrading to condensing boilers offering an efficiency rating of 90% or more.

Although the Reheat Britain Campaign is not officially endorsed by the Government – nor is it backed financially by large corporations or energy companies – it essentially aims to raise sufficient awareness in order to bring about change. Any political development of the campaign would likely result in a cash incentive for those replacing old boilers. Promisingly, ministers are beginning to warm to the idea of Reheat Britain, which has attracted the approval of some 53 MPs, one of whom includes the current Parliamentary Under Secretary for the Department of Energy and Climate Change, Joan Ruddock MP.

A petition for the scrappage scheme has been created at www.number10.gov.uk here so please sign-up here

UPDATE: The Boiler Scrappage Scheme has been announced.