Comment by Russell Dean, Residential Product Group Director, Mitsubishi Electric

"The King's Speech has rightly laid out several Bills intended to achieve economic growth, including an increase in the production of renewable energy, which will ensure our energy security, and an increase the number of people undergoing technical training. Building on this momentum is crucial if we are to deliver on the promise of net zero by 2050.

"Ensuring energy security also means encouraging the adoption of heat pumps and increasing the installation rate, which currently remains far less than 100,000 a year. For this to be achieved, the new Labour government must provide certainty by promoting and incentivising the adoption of renewable, low carbon heating systems by both consumers and businesses. 

“At the same time, the government must drive energy efficient building standards, providing clarity on how new buildings must be fitted for low carbon heating. The government should also enable a phased approach to retrofit, by setting consistent, actionable standards for the decarbonisation of all types of buildings.

“For both households and businesses, the government must prioritise reducing energy costs and one clear way of achieving this would be to rebalance the cost of electricity and gas. The price of electricity in the UK continues to be higher than that of gas (*). This price gap, where electricity is more expensive than gas prevents the adoption of low carbon heating and the electrification of heat. As a result, it is an expensive barrier for households looking to switch to more renewable alternatives, such as heat pumps.

“The previous government committed to consulting on this change. Rebalancing energy costs must remain a high priority and key action for government.

"We support the Heat Pump Association's call for a Domestic Heat Pump Tariff Discount, which would reduce the price of electricity used for hot water and heating produced by a domestic heat pump. We would also like levies removed from electricity bills to balance these costs further.

"This will make electricity more affordable for households as the cost of living continues to rise while moving energy requirements away from volatile oil and gas prices. In turn, this will improve national energy security and support the creation of a future green economy.

"Improving support for renewable apprenticeships and increasing the number of colleges offering heat pump training is also critical. Combined with government support, this will increase the current installer base and put net zero promises into action."

(*) From 1st July, gas prices have been capped at 5.48p/kWh with a daily standing charge of 31.41p, while the cost of electricity is substantially greater at 22.36p/kWh with a daily standing charge of 60.12p.