Labour urged to keep promises made to oil heated households in Northumberland

The call comes on the one year anniversary of the Energy Act becoming an official act of parliament. The Act gives the Energy Secretary Ed Miliband the power to help households that rely on oil heating to reduce their carbon emissions by introducing a Renewable Liquid Heating Fuel Obligation (RLHFO).

This would reduce the cost to consumers – at no cost to the government – of using renewable liquid heating fuels, such as Hydrotreated Vegetable Oil (HVO), instead of the current fossil fuel kerosene.

When the legislation was passed, oil heated households across the UK, which includes 23,000 in Northumberland, were promised a consultation would be held on the rollout of renewable liquid fuels within a year, but the deadline has now passed.

The legislation received cross party support, including from Labour Party. Trade associations OFTEC and UKIFDA are calling on the new government to keep this commitment to rural households and are urging oil homes in Northumberland to write to their MP.

Over 300 letters have been sent to MPs across the UK highlighting that oil heated households want to switch to a low carbon technology but haven’t been offered realistic alternatives. The letter also outlines the strong support from oil heated households for a renewable liquid fuel solution with a recent survey revealing over 90% back the call.

Electric heating is currently the government’s main preferred decarbonisation route. However, oil heated homes tend to be older and poorly insulated. Concerns have been raised, backed by research, that many rural households will face significant cost and disruption to electrify their heating needs. The government’s own estimates suggest the cost of energy efficiency upgrades and improvements could reach over £20,000 for some homes.

Whilst the Labour Party has yet to set out its rural energy policy, during the election campaign they pledged that no household would be expected to ‘rip out’ their boilers. OFTEC and UKIFDA are urging the government to support the rollout of renewable liquid fuels, such as Hydrotreated Vegetable Oil (HVO), alongside electrification.

Paul Rose, CEO of OFTEC, and Ken Cronin, CEO of UKIFDA, commented: “A year ago, political leaders in Westminster made a commitment to oil heated households to hold a consultation on renewable liquid fuels. It followed mounting evidence and concern that many consumers would face significant costs if they were given no choice and forced to electrify their heating systems.

“The deadline for this promise has passed and we have yet to hear any update. Whilst Labour weren’t in government at the time, they supported the legislation. Oil heated and rural households are often overlooked and misunderstood but they have every right to expect that commitments made in Westminster about their future are upheld.”

Over 150 oil heated properties across the UK transitioned to HVO as part of a demonstration project delivered by OFTEC, UKIFDA, fuel distributors and manufacturers. Carbon emissions were reduced by 88% following a minor, low cost modification to the boiler.

Paul and Ken added: “Following significant investment by our industry, we demonstrated in real world scenarios that HVO is a viable low carbon solution for oil heated households. Whilst electric heating has an important role to play, the cost and disruption is a huge barrier for many and would take many years to put in place.

“Our solution is ready to go, will meet the next carbon budgets and we have the workforce primed to start. By going down this route we will also reduce the impact on the electricity grid which will contribute to meeting the government’s ambitions of clean power by 2030.

“We fully support Labour’s decarbonisation agenda, but this can only be achieved through pragmatism and consumer choice. We will continue to work positively with the new Labour government to deliver a low carbon future. For the hardest to treat rural households, publishing the renewable liquid fuel consultation is an important first step.”