Powering Homes news, page 106
- April 2022
Great Britain introduced a temporary zero rate for energy-saving material installations
From 1 April 2022, Great Britain introduced a temporary zero rate of VAT on installing energy-saving materials in homes, reversed the 2019 restrictions and reinstated wind and water turbines as qualifying materials.
Great Britain reversed the legislative changes
VAT relief on installing energy-saving materials that had been narrowed in 2019 was reinstated in Great Britain from 1 April 2022, with Northern Ireland following on 1 May 2023.
Great British Nuclear Vehicle to be set up this year
The government's British Energy Security Strategy sets out plans to set up a Great British Nuclear Vehicle this year and expand nuclear, hydrogen and renewables capacity.
Group 23 inserted into Schedule 8 Part II by the Value Added Tax (Installation of Energy-Saving Materials) Order 2022
The Value Added Tax (Installation of Energy-Saving Materials) Order 2022 inserted Group 23 into Schedule 8 Part II of the Value Added Tax Act 1994 with effect from 1 April 2022.
Group 23 period begins in England, Wales and Scotland
Zero rating for VAT on installing energy-saving materials in homes in England, Wales and Scotland applies to supplies made from 1 April 2022, under a group running to 31 March 2027.
Heat pumps become cheaper to run than gas boilers
Analysis published by the Energy and Climate Intelligence Unit finds that from April 2022 an electric heat pump will cost less to run than a gas boiler, as gas prices drive the price cap up.
MIS 3005 standards due to come into force
The MCS heat pump standard MIS 3005 splits into separate design and installation standards on 1 April 2022, the same day the Domestic Renewable Heat Incentive closes.
Offshore wind ambition raised to up to 50GW by 2030 including up to 5GW floating
The UK government has raised its offshore wind ambition to up to 50GW by 2030, including up to 5GW of floating wind, in its British Energy Security Strategy.
Ofgem decides to remove the wall type distinction for heating measures in ECO4
Ofgem has confirmed it will remove the wall type distinction for heating measures under ECO4, publishing its final decision on the scheme's scoring methodology in April 2022.
Ofgem decides to split the standard heating control measure in ECO4
Ofgem has decided to split the standard heating control measure in ECO4 into two separate measures, a programmer and room thermostat measure and a TRV measure, in its final scoring methodology decision.
Ofgem introduces pitched roof insulation, hybrid wall insulation and district heating connection measures in ECO4
Ofgem has confirmed its final ECO4 scoring methodology, adding pitched roof insulation, hybrid wall insulation and district heating connection measures with partial project scores.
Grants and SchemesRules and RegulationInsulation and Glazing
Ofgem price cap increase to coincide with predicted rise in child fuel poverty to over 2.5m households
End Fuel Poverty Coalition calculations predict more than 2.5 million households with children will be in fuel poverty from 1 April 2022, when the next Ofgem price cap increase takes effect.
Energy Bills and the Price CapRules and RegulationYour Type of Home
Ofgem publishes ring-fencing proposals
Ofgem published proposals in April 2022 to ring-fence customer credit balances and Renewables Obligations payments, part of a financial resilience push after 29 supplier failures.
OLEV grant ended for private homeowners
The Electric Vehicle Homecharge Scheme, known as the OLEV grant, closed to private homeowners on 31 March 2022, leaving landlords, social housing providers and apartment block owners as the only eligible applicants.
Prepayment meter average bills set to rise to £2,017
Average prepayment meter bills under the price cap were set to rise from £1,309 to £2,017 from 1 April 2022, as Ofgem raised the cap by 54 per cent.
Solid wall minimum target of 90,000 measures set for ECO4
The government has set a minimum target of 90,000 solid wall insulation measures under ECO4, the four-year Energy Company Obligation running from 2022 to 2026, alongside a 150,000-home minimum for private tenure band E, F and G homes.
The split heat pump Standards became mandatory
The MCS heat pump Standard MIS 3005 split into separate design and installation Standards on 1 April 2022, making both mandatory for certified contractors in the UK.
Supplier allowance reduced by 50% from phase 1 of ECO4
The government has cut the ECO4 supplier allowance by half and set out final scheme rules for 2022 to 2026, with obligations calculated on supply volumes above 150GWh of electricity and 350GWh of gas a year.
Warm Homes Programme consultation completed
The Welsh Government has completed a public consultation on the future of the next Warm Homes Programme, with a new scheme expected from 2023 and a policy direction due by autumn 2022.
WHD rebate value increases to £150 for SY12
Ofgem's annual report confirms the Warm Home Discount rebate rose from £140 to £150 for scheme year 12, with around 750,000 more households supported and a lower supplier participation threshold.
WHD splits into separate England & Wales and Scotland schemes for SY12
The Warm Home Discount split into separate England and Wales and Scotland schemes for 2022-23, with a new Core Group 2 in England and Wales and the rebate rising from £140 to £150.
Grants and SchemesScotland, Wales and Northern IrelandHeat Pumps
Zero rate for air source heat pumps begins in GB with eligibility conditions removed
Air source heat pumps became zero rated for VAT in Great Britain on 1 April 2022, with the eligibility conditions that previously restricted the relief removed permanently.
- March 2022
Boiler Upgrade Scheme covers systems commissioned on or after 1 April 2022
Ofgem has confirmed that heat pumps and biomass systems commissioned on or after 1 April 2022 qualify for Boiler Upgrade Scheme support, with installer accounts opening on 11 April and applications from 23 May.
British Gas adds £2 million to Support Fund, taking it to £6 million
British Gas Energy has added £2 million to its Support Fund, taking it to £6 million, to help customers struggling to pay energy bills as living costs and inflation rise.
Energy SuppliersGrants and SchemesEnergy Bills and the Price Cap
Cold Weather Payment scheme period ends
The Cold Weather Payment scheme closed for the winter on 31 March 2022, with £25 paid for each seven-day period of very cold weather recorded in a household's area.
Deadline for completion of Green Homes Grant work
The Green Homes Grant voucher scheme closed to new applicants in 2021, and all insulation and low carbon heating work funded through it had to be finished by 31 March 2022.
Domestic Renewable Heat Incentive closes
The Domestic Renewable Heat Incentive closed to new applicants on 31 March 2022, though accreditations have continued since, mainly through transfer of ownership applications.
DWP benefits data matching facility closes for ECO3 eligibility matching
The Department for Work and Pensions benefits data matching facility used to check household eligibility under the Energy Company Obligation closes on 31 March 2022, with reopening unlikely before ECO4.
ECO3 scheme closes with 16 of 26 obligated suppliers still operating
Ofgem's final determination for the Energy Company Obligation 3 scheme shows ten of 26 obligated suppliers left the market during its run, leaving a £135 million shortfall covered by others.
Four SEG licensees exited the market due to insolvency during SEG Y2
Ofgem's second Smart Export Guarantee annual report shows four licensed suppliers left the electricity market through insolvency during 2021-22, so no data was received from them.