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OFTEC Welcomes Boiler Scrappage Scheme

9th December 2009

The Oil Firing Technical Association (OFTEC) has welcomed the announcement of a household boiler scrappage scheme for the UK.

The introduction of the new scheme is part of a £200m package of initiatives to reduce household carbon emissions, and was outlined in the Chancellor's Pre-Budget Report in the House of Commons today. Up to 125,000 households will benefit from a £400 discount for upgrading an older boiler with a new high efficiency model.

Jeremy Hawksley, Director General of OFTEC, said "Inefficient boilers can add £200 to the average heating bill. Replacing an existing conventional oil boiler with a modern, high efficiency model can save over 18% on fuel bills, and help lower household carbon emissions.

"In Austria an industry funded subsidy scheme to incentivise the purchase of modern oil boilers has caused boilers sales to nearly triple in the third quarter of this year compared to the same period in 2008. Let's hope this UK scrappage scheme has a similar impact. Heating Oil is by far the most popular choice for heating in rural areas which do not have access to mains gas. Around 1.3 million homes in the UK use oil as their main source of fuel for heating and sometimes cooking."

Government sponsored research has confirmed that modern oil fired boilers are often more efficient than LPG and mains gas alternatives. Recently published independent statistics also show that it costs £814 per annum to heat a three bedroom home with an oil fired condensing boiler, compared to £991 with a non-condensing model.

The boiler scrappage scheme could also enable people in rural areas using older, non-condensing LPG boilers (costing a whopping £1,654 per annum to run) to upgrade to a new oil fired condensing model. The greater efficiency of oil boilers, together with reduced fuel consumption on a per litre basis, will allow homeowners and householders of older LPG boilers to escape the 'LPG Trap' - reducing their domestic heating bills by up to 50%.

The cost of heating rural homes is marginally higher than in urban areas. Those with access to mains gas can expect to pay around £713 per annum to provide heat and hot water for a three bedroom home.

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