Three of the UK’s “big four” boiler manufacturers have given no guarantee that customers will receive refunds of the so-called “boiler tax” the companies imposed on new boilers earlier this year.

In January, the boilermaker increased the cost of each boiler by an extra £120 to cover expected fines from the green scheme, but the scheme has now been postponed.

Ministers have told them to ensure 4% of sales are heat pumps rather than gas boilers or face fines of £3,000 for each improper installation.

Since the heat pumps run on electricity rather than natural gas, the move is intended to increase energy security and reduce air pollution and greenhouse gas emissions.

Energy Security Minister Claire Coutinho accused manufacturers of “price gouging” and told LBC heat pump sales were already so high they did not expect to be punished.

Boilermakers said unachievable targets would result in multi-million pound fines they could not afford and so increased the price of gas boilers to cover the expected costs.

But in March, the government postponed the heat pump target – also known as the Clean Heat Market Mechanism (CHMM) and known as the ‘boiler tax’ – until April 2025 due to resistance from the boiler industry.

Three of the “big four” boiler manufacturers, Bosch, Vaillant and Brasil, told Sky News this week they were refunding “boiler tax” cash to distributors and retailers who sold boilers to them.

But they say the companies have a responsibility to return money to households because manufacturers often don’t have direct relationships with consumers themselves.

No one from Ideal Heating could comment or confirm its plans.

“Pay out of pocket” families

Energy think tank ECIU estimates that the four companies could collect a total of £40m through the so-called boiler tax, based on the average amount levied in the UK and the average number of boilers sold each month.

Jess Ralston, ECIU energy director, said: “The boiler tax was introduced by manufacturers rather than retailers, so it feels like they are putting the onus on the middle men.

“They have been recommending that the penalty be scrapped, so they must have thought there was a possibility they would have to refund the boiler tax – they don’t seem to have any mechanism in place for that possibility, leaving everyone else in the lurch.” Hooks. “

Gillian Cooper, energy director at Citizens Advice, said: “Now that boiler retailers have been correctly promised refunds, they must pass these refunds on to consumers.

“Anyone who bought a boiler between January 1 and the end of March this year may be forced to pay more than they should, leaving them out of pocket.

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“Not only are people being cheated, but the government’s decision to delay the Clean Heat Market in response to pressure from manufacturers will expose consumers to the effects of volatile gas prices for longer.”

After the government confirmed the CHMM delay, retailer Wolseley, which sells boilers made by Vaillant, confirmed it would be responsible for refunds on boiler sales.

Clean home heating company Warmur urged boiler manufacturers to “proactively contact customers they know have had boilers installed since January 1 and help them arrange refunds”.

What does the boiler manufacturer say?

BAXI said its consumers will receive refunds as the company will “return all funds collected to our commercial distributors who then supply the products to our community of 35,000 installers before selling them to consumers By”.

“Although we will stop adding surcharges from Monday 18 March, we have completed part of the process.

“In the rare cases where we sell products directly to consumers through warranty relationships, we will refund the surcharge directly to them.”

A spokesman for Vaillant said: “Vailant has communicated to its direct merchant customers that the boiler tax has been removed from March 19, 2024 and all taxes and fees collected from January 1, 2024 will be fully refunded.”

“Vailant can only ensure our direct customers receive refunds, we cannot see the extent to which installers and merchants are passing on the tax.”

A Bosch spokesman said: “We have fully refunded our commercial customers 100% of the tax we collected on boilers sold to them between January 1, 2024, and March 15, 2024.

They added: “Our trading relationship is with merchants and we have refunded the levy to them. We do not sell boilers to end consumers.”