Stopping the tide or going with the flow?
3rd Mar 2025
Maybe it’s my part-Nordic ancestry but I often come to the defence of King Canute who is so often misunderstood.
The much maligned view of him is that he thought he could turn the tides back, whereas a more modern interpretation of this religious man is that he wanted to prove to his subjects that even the most powerful man in the kingdom could not stop the tides, even if he ordered it.
This week, we saw the legacy of this being played out in response to Ofgem raising the Energy Price Cap by over £100. They blamed wholesale gas prices. The Energy Secretary joined in, saying both gas and electricity prices were affected by the global price increase, which was out of the control of government. Indeed, he doubled down by saying that his Clean Power 2030 Mission was directed at giving the UK control over its energy bills, by ending the dependence on gas.
It's a fair point to make; the UK government cannot control global gas prices. Indeed, they cannot control global prices of many things, heat pumps would be another example. So, it does beg the question, why do politicians make promises about energy bills coming down by £300 or heat pump costs halving, when they acknowledge they have no control over them?
But the Energy Secretary can control regulation in our sector. He can do so to help reduce bills and he could do it tomorrow.
We have long supported the idea that all heating systems should have a mandatory annual service – checking they are safe; that the system is running efficiently and that a replacement strategy can be planned, ahead of the appliance failing. But we understand that this might impose a cost on the household that politicians will shy away from, despite its benefits.
But in the rented sector, annual gas safety checks are already in place. It would not take much to extend this to a service, with a view to running the heating system as efficiently as possible. Lowering the boiler flow temperature might be one outcome, with its annual saving of approximately £100 a year. Shouting at the tides or going with the flow (temperature), the Minister can choose which is best.
Mike Foster
EUA's Chief Executive
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