Prime Minister Rishi Sunak’s announcement that the UK Government intends to achieve its net-zero target in a more “proportionate way” is a welcome development.
The Prime Minister confirmed the Government will align the phaseout date for oil boilers with gas boilers to 2035. He has also confirmed that there will be an exemption for off-grid properties in the scenario where there are no suitable low-carbon heating solutions. Energy is a devolved matter in Northern Ireland, but we are pleased the Prime Minister has recognised the need for a pragmatic approach to the United Kingdom’s decarbonisation pathway. In OFTEC’s opinion, this will ultimately help hard-pressed consumers make the changes required to hit the United Kingdom’s net-zero targets.
Decarbonisation can only be achieved with consent, and it is crucial consumers understand policy plans, view them as fair and feel their views have been listened to.
Moving the date when oil boilers will no longer be permitted to be installed to 2035 – the same as for mains gas – is fairer and reflects the current practical and economic realities. However, we must press ahead with decarbonisation, and we welcome that the Government now wants to explore all viable off-gas grid options.
It is vital the Government now brings forward plans — such as the introduction of a fuel obligation and tax changes to support the deployment of renewable liquid fuels for heating — so that progress can be made quickly. Mr Sunak’s announcement follows a decision by the Government to insert an amendment into its Energy Bill which will, if it becomes law, provide a commitment to consult on a renewable liquid heating fuel obligation within 12 months. This would provide a route by which fuels, such as HVO, can be supplied at an affordable cost to oil-heating customers through the removal of duty. The Republic have their consultation on an obligation already out. The consultation by DECC proposes the introduction of renewable component in fuel, which will increase over time. Thus, providing a pragmatic pathway that yields immediate carbon savings, market certainty and least disruption.
It runs to the end of September and OFTEC is preparing a response in conjunction with Fuels for Ireland (FFI) and the UK and Ireland Fuel Distributors Association (UKIFDA). While it is good to see this consolation out, there are several gaps, and we have written to the department asking for an urgent meeting to clarify exactly how the RHO will functionally operate.
Meanwhile, in NI, the Department for the Economy has kicked off a call for evidence on using liquid biofuels in a series of planned stakeholder and working group meetings. OFTEC is one of the stakeholders and we will continue to lobby to ensure biofuels are included in the new energy strategy.
