Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential effect of the use of funds levied as a result of missed targets through the proposed Clean Heat Market Mechanism on (a) investment in manufacturing of and (b) support for homeowners for purchasing heat pumps.

In the consultation, the Government has proposed proportionate and realistic targets for the Clean Heat Market Mechanism, along with a set of other flexibility options for scheme participants. The Government is confident that all market actors will be able to meet the scheme targets, avoiding the need to make payments in lieu. If companies do choose to make any such payments, these will go to the Government’s Consolidated Account.