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Calor Slams “Country Heating Tax”

Calor Gas Ltd has said it is alarmed by Ministers’ backing for what amounts to a “country heating tax”. It said the Government’s Renewable Energy Strategy will penalise families living in the countryside and force many more rural households into fuel poverty.

Calor said the tax would add £250-4,000 to the average energy bill for rural households using lpg, oil, solid fuel or electricity.

Paul Blacklock, the company’s head of strategy and corporate affairs, said: “Calor fully supports the Government’s climate change targets for CO2 emission reduction and the associated timelines. However, where we differ is on the practicalities of how the

Government is seeking to achieve CO2 emission reductions – especially in rural areas. “Calor has been operating for almost 75 years and does around three quarters of its business in the countryside where there is no mains gas. We also market a fuel – lpg – which is recognised as the lowest carbon conventional fuel available off-grid.

“This is why we have reacted so strongly against the Government’s proposals to try and bully rural householders into the widespread use of more expensive technologies, such as burning wood chips in rural areas. A typical biomass (wood chip) boiler will cost well over £10,000 – far above the reach of most homeowners – so the Government is seeking to sweeten the pill by providing grants to help reduce the cost.

“The money for these grants will come from a new energy tax to fund the Renewable Heat Incentive (RHI) – which the Government’s own calculations show, along with other measures, will add up to a massive 35 per cent to the cost of rural heating bills. “Scottish MP Danny Alexander has already called it a “Highland heating tax”; only its effects will not be restricted to Scotland. Fuel poverty is already rising fast – this self-inflicted injury will drive the totals in fuel poverty up more steeply.

“The total cost of the Renewables Strategy runs into tens of billions of pounds and we believe that more could be achieved for a lot less money and without the need for additional taxes.

“All this because the Government seems determined to follow a strategy that is overly reliant on renewable technology. Unfortunately, there is no silver or even ‘green’ bullet and the Government needs to adopt a portfolio approach and fully recognise the important part that low carbon fuels, like lpg, has to play. They do not want to risk making the same mistakes with biomass as they did with biofuels.”

Contact Calor Gas Ltd on 01926 330088 www.calor.co.uk