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UNDER EMBARGO UNTIL 3 SEPTEMBER 2024, 00.00 (GMT) Hi , A group of cross-party MPs and Peers has urged the UK Government to adopt a technology-neutral approach to home decarbonisation. In a letter addressed to James Murray MP, Exchequer Secretary to the Treasury, the co-signatories advocate for the inclusion of heat batteries as Energy Saving Materials (ESMs) in the upcoming Autumn Statement. The letter has been sent in tandem to an industry letter on the same subject, with signatories including Centrica New Business & Net Zero, OVO, EON and Thermal Storage UK. I have attached a press release outlining this news, as well as copies of the two letters. You are welcome to publish this news from September 3, 2024. The following contacts are also available for interview requests: - Afzal Khan CBE, Member of Parliament for Manchester Rusholme
- Johan du Plessis, founder and CEO at tepeo — manufacturer of the heat battery boiler, the ZEB
- Tom Lowe, founding director at Thermal Storage UK
I can also put you in touch with other organisations/signatories involved in these letters if you wish to speak to someone else. Please let me know if you need any additional information to publish this story. Kind regards, Laura Swire Client Services Director +44 (0)1785 225416 | +44 (0)7821597816 Stone Junction Ltd | The Malthouse | Water Street | Stafford | Staffordshire | ST16 2AG Parliamentarians and Industry Leaders Call for Widening of VAT Relief for Low Carbon Heating ~ Extending support to heat batteries for central heating would accelerate the UK’s decarbonisation ~ A group of cross-party MPs and Peers has urged the UK Government to adopt a technology-neutral approach to home decarbonisation. In a letter addressed to James Murray MP, Exchequer Secretary to the Treasury, the co-signatories advocate for the inclusion of heat batteries as Energy Saving Materials (ESMs) in the upcoming Autumn Statement. The letter was sent in tandem to an industry letter on the same subject, with signatories including Centrica New Business & Net Zero, OVO, EON and Thermal Storage UK. The current ESM status grants VAT relief to a limited range of low-carbon technologies, predominantly heat pumps. While heat pumps play a crucial role in reducing carbon emissions, they may not suit all UK homeowners. An estimated 20 percent of the UK’s housing stock, representing over 5.5 million households, may find it more difficult to accommodate individual heat pumps due to space constraints and may not have access to a suitable local heat network[1]. Heat batteries offer a viable alternative, operating at temperatures equivalent to traditional fossil fuel systems and using existing home infrastructure such as pipes and radiators. They provide an effective low-carbon heating solution with running costs comparable to heat pumps. Moreover, when compared to electric boilers, heat batteries are half the cost to run. Despite strong support from senior officials in the Department for Energy Security and Net Zero (DESNZ) and other government entities, heat batteries narrowly missed out on achieving ESM status in Autumn 2023 due to definitional issues. Since then, ongoing discussions between the DESNZ, HM Treasury (HMT), and HM Revenue & Customs (HMRC) have sought to address these barriers. However, the scope of ESM relief has not yet been expanded, despite HMRC acknowledging that heat batteries meet the objectives of the scheme. The cross-party letter is co-signed by prominent parliamentarians including Afzal Khan MP, Ben Lake MP, Bob Blackman MP, Lord Storey, Lord Duncan of Springbank, Baroness Whitaker, Baroness Sheehan, Baroness Brown and Baroness Hayman. The issue has also garnered the attention of a number of newly elected Parliamentarians who have made representations to the Treasury on behalf of the heat battery industry. “I know first-hand from my constituents in Manchester Rusholme the devastating impacts high energy bills are having on low-income households as thousands are driven into fuel poverty every year and so many people are still wondering how they are going to make ends meet” states Afzal Khan, Labour MP for Manchester Rusholme. “This is why I support proposals to extend ESM status to heat batteries which, under the right policy framework, will save low-income households hundreds of pounds per year and get Britain back on track to meeting our climate targets. I believe this move can help deliver the new Labour Government's ambitious national Warm Homes Plan and support our commitment to make Britain a clean energy superpower.” The co-signatories emphasise that extending ESM status to heat batteries will particularly benefit smaller, low-income households that lack outdoor space, alongside a request that VAT relief for all ESMs runs until 2030. This is crucial for reducing household carbon emissions by offering consumers a variety of viable and cost-effective, low-carbon heating options. The call from parliamentarians mirrors the needs of industry. Co-ordinated by Thermal Storage UK, the industry letter recommending modernisation of the ESM technology list includes household names such as Centrica New Business & Net Zero, OVO and EON, alongside Energy Saving Trust and the Heat Pump Federation. Co-signers include innovators of green technologies such as heat battery manufacturer, tepeo. Tom Pakenham, Commercial Director, Centrica New Business & Net Zero commented: “Helping the UK reach net zero needs to be simple and affordable for households. Providing VAT relief on a whole range of low carbon technology will give homeowners more choice on the solutions that will help to decarbonise their homes. We look forward to working in collaboration with the Government on this and other initiatives to empower UK households on their journey to net zero.” "The Secretary of State for Energy Security and Net Zero has expressed a commitment to decarbonising millions more households,” explained Johan du Plessis, CEO of tepeo. "By widening the list of ESMs to include heat batteries, the government can fulfil this ambition and support households in making sustainable choices that suit their unique needs." The co-signatories strongly support the UK government including heat batteries in the ESM scheme and welcome any discussions between the Treasury, industry representatives and heat battery manufacturers to help achieve this. They believe that this step is essential for achieving the UK’s home decarbonisation goals and providing households, particularly where heat pumps are less suitable, with a low carbon heating option. Ends: 771 words Editor’s note: If you want to ensure you keep up to date with press material, opinion focussed content and case studies from tepeo visit https://www.tepeo.com/tepeo-newsroom/ For further information contact: Pip Watkins – tepeo Ltd, 630 Wharfedale Road, Winnersh, Wokingham, RG41 5TP www: www.tepeo.com e-mail: pip.watkins@tepeo.com Press enquiries: Laura England or Marco Giudici Stone Junction Ltd Suites 1&2 The Malthouse, Water Street, Stafford, Staffordshire, ST16 1AR
Telephone: +44 (0) 1785 225416 e-mail: laura@stonejunction.co.uk or marco@stonejunction.co.uk www: www.stonejunction.co.uk Blog: www.stone-junction.blogspot.com Twitter: www.twitter.com/StoneJunctionPR Facebook: http://www.facebook.com/technicalPR LinkedIn: https://www.linkedin.com/company/stone-junction-ltd About tepeo: tepeo was founded in 2018 to give customers a cleaner, smarter, and more cost-effective heating solution to help them transition away from fossil fuels. Over three years of research & development culminated in the Zero Emission Boiler (ZEB®), an efficient heat battery solution that uses off-peak electricity to supply heating. The ZEB was launched in 2021 and tepeo now has over 50 employees based out of the offices and manufacturing facility in Wokingham. By growing the network of tepeoPRO installers in 2024, they are hoping to bring this British made product to more environmentally-conscious customers across the UK, increasing the options available for low-carbon heating. tepeo is here to help millions of homeowners transition away from their existing boilers towards a cleaner alternative so they can heat their home, not the planet. For more information, visit www.tepeo.com www.tepeo.com Ref:TEP003/07/24
[1]Source: https://www.nao.org.uk/wp-content/uploads/2024/03/Decarbonising-home-heating-HC-581.pdf
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