Martyn Bridges Reflects on Challenges Faced in 2022

Martyn Bridges, Director of Technical Services at Worcester Bosch, reflects on the challenges we faced in 2022 and looks ahead with an optimistic viewpoint on the year ahead:

2022 was a particularly challenging year for the world, with first the Russian-Ukrainian war, which resulted in an energy crisis. In addition to this, we have seen three Prime Ministers within the last year, probably all with differing views about the future of the industry.

With 2023 on the horizon, we are optimistic that there will be some development for the heating and hot water industry when it comes to movement, from a government perspective, on future technology, net zero target, and hydrogen boilers.

Any plans are still to be seen but we’re hoping for change for the better of the heating and hot water industry in 2023:

Recapping 2022

It was a difficult year for homeowners. We were all experiencing concerns about the cost of energy, and as we stand now the majority of homeowners’ energy bills have doubled, or even increased significantly more than that, which leaves most going into the new year feeling uneasy about the added costs and pressures.

Following Liz Truss’ introduction of the cost cap earlier on in the year, energy bills will be stagnant until the end of the year. As for what is expected to come in 2023 is uncertain at this time.

From an industry perspective, in 2022 we saw that heat pumps began to prosper, and the Boiler Upgrade Scheme was introduced to homeowners to help with the higher purchase price of a heat pump.

Unfortunately, the number of vouchers redeemed was significantly lower than what we had planned for and expected – around 5,000 redeemed, with 30,000 available. This could be down to the added cost of living, with homeowners now having less disposable income to want to spend on investing in new heating technology.

From a supply chain and appliance manufacturer perspective, 2022 has also been rather challenging. These issues have had a significant effect on installers who would have been unable to purchase accessories and items that would make up part of the heating system install. As a business, we were unable to manufacture as many appliances as we would have liked due to a shortage of certain electrical components.

Looking ahead to 2023

We are optimistic for the year to come and are hoping for the long-awaited hydrogen-ready boiler consultation and are looking forward to the possibility of seeing something legislation-wise come at the beginning of the year to help put consumers’ minds at ease when it comes to the future of the heating industry.

Despite the ever-changing government and those in leadership, MP Chris Skidmore has been appointed to investigate the progress being made on net zero. Recommendations from the MP have been requested to be handed to the Prime Minister and will hopefully be able to share the outcomes from net zero and how as an industry we can move toward meeting government targets.

From a market perspective, I think we will still see steady growth in heat pump and hybrid sales. Additionally, we are expected to see boiler sales of around 1.5-1.6 million, like we do every year, as well as a growing interest in low-carbon technologies, including solar PV systems.

While the year ahead looks promising, it is still a bit of a waiting game when it comes to what the next year will look like for homeowners and the industry. It will be both an exciting and challenging time for us and it will be interesting to see how the year unfolds from a government perspective.