The UK heating industry has been responding to the recent announcement that the Department for Energy and Climate Change (DECC) has been closed and merged with the new Department for Business, Energy and Industrial Strategy (BEIS). While there is a certain amount of scepticism about what the move suggests about the Government’s determination to tackle the issues of climate change and decarbonisation, there has been some positive response to the appointment of Greg Clark (pictured) as the Minister in charge of the new department.
Phil Hurley, MD of renewable heating manufacturer NIBE, says that the decision is ‘unsettling’, especially in the context of the RHI – and reiterates the importance of building a market that can thrive without subsidies. “The announcement about the abolition of DECC was unexpected, to say the least,” he says. “Following the welcome boost provided by the launch of the RHI in 2014, this decision could throw the industry into a renewed state of uncertainty. It would be wrong to say that we at NIBE have no concerns about the potential implications of this for renewable heat in the UK – particularly as it comes during a pivotal RHI consultation period. However, regardless of the political situation, the long-term cost- and energy-saving benefits of renewable heating technologies are inescapable.
“The fact remains that the UK is legally bound by statute to honour its 2030 carbon reduction targets, and technologies like heat pumps will be integral to ensuring this happens. That said, yesterday’s news does leave plenty of room for speculation about the specific focus of the government’s future energy strategy. As a leading manufacturer, we urge the newly formed cabinet not to overlook the vital importance of demand-side reduction in shrinking our collective carbon footprint in line with targets. Outside Parliament, we’re asking the renewable heating industry not to lose focus. Yes, the RHI and other government initiatives have been major market drivers – but what we need to do now is pull together to ensure renewables flourish on their own merit.”
Jeff House, Regulatory Marketing Manager at Baxi Heating, is more positive about the new Government’s announcement and argues that it could indicate a positive outlook in the long run: “Since it was instated, DECC has successfully pushed climate change to the forefront of the political agenda, making positive and permanent steps to developing and implementing policy on the energy trilemma. Despite the impact that the department has had in terms of putting the energy issue into the mainstream, the latest development should be viewed as the next crucial and necessary step to reaching our carbon targets.
“The merge with BEIS will create a united force for markets, investors and consumers, and should allow the issue of decarbonisation to better tie up with infrastructure, innovation and policy initiatives. This could create a stronger base for us to propel the issues highlighted by DECC forward and make significant changes for a greater impact.
“We’re positive about Greg Clark pushing forward with the current decarbonisation agenda. While it’s still early days and there’s work to be done in determining where DECC’s areas of responsibility will fit into the new department, we are optimistic about this new appointment and interested to see how this will develop and impact on the energy sector in the future.”
Energy efficiency champion, Peter Thom, is equally positive about the appointment of Greg Clarke to the Cabinet and argues that it could help to promote a ‘proper integrated energy efficiency policy’.
“Merging the responsibilities of energy and climate change with business and economic growth should enable future policy to be better informed by industry to make it work,” he argues. “If Government commits to working closer with industry, long term policies on domestic heating and carbon emissions stand a better chance of success. Previous initiatives have been unclear, too fragmented and inconsistent, leaving consumers confused and let down; businesses frustrated and policies exposed to failure. It’s essential that future initiatives can be trusted by consumers, take into consideration the needs of small businesses and are robust and flexible enough to work with new technologies and future changes to energy supply.
“I look forward to a new impetus being given to tackling climate change and fuel poverty in this appointment; and to working closely with the new department to provide advice to inform and ensure new initiatives are workable for all.”
