British Gas, EDF, OVO and Octopus boiler customers receive £368 deal | Personal finance

Customers of major energy firms British Gas, EDF and Octopus Energy are being offered between £221 and £368 a year to get rid of their boiler.

The UK Government wants households to swap old fossil fuel boilers for alternative, renewable energy sources such as heat pumps – although Keir Starmer has said he will not force anyone to get rid of their boiler.

However, several energy companies offer customers discounts in the form of lower tariffs if they choose a heat pump.

Heat pumps enable you to heat your home using electricity, which is increasingly being produced from renewable sources such as wind farms.

Another advantage of heat pumps is that in the summer they can be switched to air conditioning by switching the system to reverse mode.

EDF Energy is now offering a heat pump tariff that promises to save £221 a year on gas and electricity bills.

The Octopus Energy heat pump tariff can save households around £260 a year, while the British Gas heat pump tariff can save customers £368 a year.

Andy Kerr, founder of BOXT, said: “The Government believes that the introduction of heat pumps into UK households is a key step towards achieving net zero emissions by 2050. However, while heat pumps can be very efficient for the right homes, the current cost of electricity in the UK, combined with the upfront costs of purchasing a heat pump, can be a barrier for many customers.

“So the idea that the UK’s ‘big six’ electricity retailers are warming up to heat pump tariffs is undoubtedly good news. With dedicated pricing structures tailored to the specific needs of heat pump users, households with an existing heat pump could enjoy lower electricity costs, and those considering installing one may be more inclined to do so.”

“While gas is generally the cheaper fuel option in the UK, Octopus Energy says that using a heat pump on its ‘Cosy Octopus’ tariff could save customers £221 a year compared to a gas boiler. EDF predicts that customers switching to its ‘Heat Pump Tracker’ tariff could save the average three-bedroom home £260 a year.

“British Gas and Ovo Energy have also adopted a new usage tariff. They offer a reduced price per kWh, which is applied to heat pump usage only. Both tariffs are only available to households with a working smart meter.”

“ScottishPower has also introduced a new tariff which offers a reduced rate of 15p per kWh when customers use electricity between 11am and 4pm. In promoting the new tariff, Scottish Power argued that heating water in the middle of the day, when the average ambient air temperature is higher, is more efficient for households with an air-to-water heat pump.

“Positive steps like this pave the way for higher adoption rates. We’ve seen other great developments recently, such as the new ‘visit a heat pump’ scheme launched by the charity Nesta. These steps towards education, along with government incentives such as the Boiler Upgrade Scheme, which offers eligible homeowners a flat-rate grant of £7,500 towards installing a heat pump, will help to break down the barriers to adoption.

“As with any heat pump installation, it is important to consider the price of installation and running against the cost of a gas boiler and the suitability of the home. Homeowners need clear guidance on how to improve the efficiency of their home, including insulation requirements and radiator guidelines, which are essential for optimum heat pump performance.”

“For homes with higher heating requirements, one option is a hybrid heat pump system. A hybrid system is one where a heat pump is used alongside another heat source, such as a fossil fuel boiler.

“The introduction of heat pumps in the UK shows great promise for reducing carbon emissions and tackling climate change, but discussions are needed to ensure this transition is sustainable and efficient for all households. At BOXT we want our customers to find the best solution for their home energy needs, at the best possible price, and we will always work with them to help them make an informed decision.”