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Dear Drakes Customer
On 30th November 2023 the UK Government released the final details of its plan to implement the Clean Heat Market mechanism (CHMM), which comes into effect on 1st January 2024. The mechanism requires gas & oil boiler manufacturers to produce, sell & register 4% of its gas boiler sales, in Air Source Heat Pumps. Failure to hit this threshold will result in significant fines for each unit that falls short of that target, equivalent to £3000 per unit.
The manufacturers are unable to absorb these fines, which modelling suggests could be anywhere between £40m - £60m per gas boiler manufacturer per annum and they are therefore passing these through the supply chain, in the form of a price increase.
As such Drakes have no alternative but to implement this increase on all sales from 1st January 2024. Due to increased levels of demand & limited availability of stock we cannot guarantee that orders placed this month will be delivered to us in December, so therefore the price increase will be applied to any order shipped from 1st January 2024 onwards.
Although not all boiler manufacturers will apply the same increase, we are seeing or expecting anything from £110 - £130 per boiler.
We will update you all once we have more information.
We appreciate your support & continued custom.
Yours sincerely
Drakes Plumbing Supplies
