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A Sky News investigation into potentially misleading and confusing boiler marketing involving the use of hydrogen in home heating has prompted several companies to remove statements about the gas from their websites.

It comes as the chief executive of the UK’s independent climate change committee told Sky News that “no one should be installing a gas boiler thinking that hydrogen is a sure thing” or a way of futureproofing their home.

Hydrogen, which burns without emitting carbon dioxide, is likely to play a significant role in decarbonising heavy industry and hitting net zero targets, but the government has said its potential use in residential properties won’t be decided until 2026.

Despite this uncertainty, Sky News has found several companies making confusing and potentially misleading claims about hydrogen as part of the sales process for standard gas boilers.

Boilers

The website for online retailer Boiler Central contained a video in which an adviser says: “With the push towards a greener future, most new boilers are now having the hydrogen ready compatibility built into them, helping not only future-proof your investment of a new boiler, but ensuring your energy bills and carbon footprint remain as low as possible.”

But boilers that could in theory accept a blend of up to 23% hydrogen are not new, in fact this capability has been required by law since 1996.

Conversely, boilers that are ready to burn 100% hydrogen aren’t available to buy yet.

In addition, hydrogen can also be more expensive than gas, with a recent assessment by energy analysts Cornwall Insight suggesting it could be up to 70% more expensive to run a home on 100% hydrogen fuel.

And although hydrogen burns cleanly, it can be carbon intensive to make, depending on the production technique.

A recent report by the House of Commons Science and Technology Committee said that although there are plans in place to expand clean or “green” hydrogen production it noted that “currently in the UK, hydrogen is overwhelmingly produced from fossil-fuel intensive processes – so called ‘grey hydrogen'”.

Boilers

Boiler Central’s director James Elston denied misleading customers but accepted the company’s content could have been clearer.

In an interview he told Sky News that Boiler Central had made changes to its website.

He said: “What we’ve looked at is just tidying up some of the generalisations.

“We’re saying a new boiler is more efficient than an old, it can save you money and it can save you on your carbon footprint.

“Those are all true, true statements.

“Linking it directly to hydrogen is where we’ve separated… where we’ve changed the content.

Boiler Central is not alone.

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Manufacturer Worcester Bosch’s website claimed that hydrogen “is what the government will be introducing into the UK gas grid” and “the UK will, eventually, switch from natural gas to 100% hydrogen”.

In response to questions from Sky News the company removed the statements from the website and said in a written response: “Ensuring our customers have all the information they need to make home heating related purchase decisions with confidence is paramount.

“Worcester Bosch continues to review and adapt product related communications to reflect industry updates on an ongoing basis.

“We are looking to change the wording on this particular web page to reflect your observations.”

Separately, an investigation by media platform openDemocracy and shared exclusively with Sky News recorded British Gas boiler sales advisers making potentially misleading and confusing claims.

One said: “We do sell gas boilers that are hydrogen ready, so when we do make the switch to hydrogen… you will not have to purchase a new boiler, so you have your future covered there.”

Another said that a hydrogen ready boiler would be cheaper to run “because the cost of hydrogen itself is deemed to be a lot cheaper compared to natural gas”.

They added “all the country will be hydrogen eventually”.

Boilers

British gas owner Centrica told Sky News: “The journey to net zero is complex and accurate information is really important to us.

“Our training and support is designed to ensure consistency and accuracy across our advisors.

“This is a fast-moving subject and our teams do a great job – we’ve listened to the couple of calls in which our advisers were asked very specific and detailed questions about hydrogen, and some elements of the conversation went beyond the training.

“This is isolated and we will give these guys some more support on the role hydrogen will play in net zero – which will be needed to help the UK hit emission targets.”

Chief executive of the UK’s independent climate change committee Chris Stark told Sky News: “The… big question is whether you start to use [hydrogen], particularly in homes, and we just don’t have the evidence to support that yet.

“No one should be installing a gas boiler now thinking that hydrogen is a sure thing and that this is a way of future proofing.”

Boilers

Consumer affairs publication Which? recently published this advice: “The viability of hydrogen for home heating hasn’t yet been proven. Trials have been proposed by government and gas companies to see if it works at a community level, but it’s been difficult to get local consent for live experiments in real communities.

“Consumers are yet to find out what hydrogen fuel would cost and what sort of infrastructural changes would be needed to pipe it into people’s homes.

“Because of uncertainty around the role of hydrogen for heating, it’s not recommendable to buy a gas boiler on the rationale that it will ‘become’ a hydrogen boiler, or to forego other low-carbon heating technologies solely on the basis that hydrogen is around the corner.”

Sky News shared the material described in this article with the Competition and Markets Authority.

The watchdog’s director of consumer protection Sabrina Basran highlighted the organisation’s recent report describing its “concerns that people could be duped into handing over their hard-earned money when businesses market boilers as being able to use hydrogen”.

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She said: “While we can’t comment on individual firms, these claims may be misleading and risk greenwashing consumers into thinking these products are more environmentally friendly than they are. Any business marketing or selling boilers as ‘hydrogen-blend’ or ‘hydrogen-ready’ should ensure they are treating shoppers fairly and complying with consumer protection law.

“This includes not giving a deceptive impression of the environmental benefits of their products, using accurate descriptions to be clear that boilers cannot run on hydrogen now, and ensuring they provide the information needed to make informed decisions.

“We’ll be publishing new guidance to help businesses meet their legal obligations when marketing products in the green heating and insulation sector, as well as considering whether further action, such as enforcement, is necessary.”

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Tesla approves $29bn share award to Elon Musk

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Tesla approves bn share award to Elon Musk

Tesla’s board has signed off a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.

The new award, which amounts to 96 million new shares, is not just about keeping the electric vehicle (EV) firm’s founder in the driving seat as chief executive.

The new stock will also bolster his voting power from a current level of 13%.

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He and other shareholders have long argued that boosting his interest in the company is key to maintaining his focus after a foray into the trappings of political power at Donald Trump‘s side – a relationship that has now turned sour.

Musk is angry at the president’s tax cut and spending plans, known as the big beautiful bill. Tesla has also suffered a sales backlash as a result of Musk’s past association with Mr Trump and role in cutting federal government spending.

Tesla Inc CEO Elon Musk onstage during an event for Tesla in Shanghai, China. Pic: Reuters
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Tesla’s Elon Musk is seen on stage during an event in Shanghai Pic: Reuters

The company is currently focused on the roll out of a new cheaper model in a bid to boost flagging sales and challenge steep competition, particularly from China.

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The headwinds have been made stronger as the Trump administration has cut support for EVs, with Musk admitting last month that it could lead to a “few rough quarters” for the company.

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Could Trump cost Tesla billions?

Tesla is currently running trials of its self-driving software and revenues are not set to reflect the anticipated rollout until late next year.

Musk had been in line for a share award worth over $50bn back in 2018 – the biggest compensation package ever seen globally.

But the board’s decision was voided by a judge in Delaware following a protracted legal fight. There is still a continuing appeal process.

Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details.

The special committee said in the filing on Monday: “While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident that this award will incentivize Elon to remain at Tesla”.

It added that if the Delaware courts fully reinstate the 2018 “performance award”, the new interim grant would either be forfeited or offset to ensure no “double dip”.

The new compensation package is subject to shareholder approval.

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Motor finance operators can breathe big sigh of relief

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Motor finance operators can breathe big sigh of relief

Bank stocks have enjoyed a boost as traders digest the Supreme Court’s ruling on the car finance scandal.

Some of the country’s most exposed lenders, including Lloyds and Close Brothers, saw their share prices jump by 7.55% and 21.62% respectively.

It came after the court delivered a reprieve from a possible £44bn compensation bill.

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Banks will still most likely have to fork out over discretionary commissions – a type of commission for dealers that was linked to how high an interest rate they could get from customers.

The FCA, which banned the practice in 2021, is currently consulting on a redress scheme but the final bill is unlikely to exceed £18bn. Overall, the result has been better than expected for the banks.

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Car finance ruling explained

Lloyds, which owns the country’s largest car finance provider Black Horse, had set aside £1.2bn to cover compensation payouts.

Following the judgment, the bank said it “currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group”.

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‘Don’t use a claims management firm’

The judgment released some of the anxiety that has been weighing over the Bank’s share price.

Jonathan Pierce, banking analyst at Jefferies, said the FCA’s prediction was “consistent with our estimates, and most importantly, we think it largely de-risks Lloyds’ shares from the ‘motor issue'”.

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Bank stocks have responded robustly to each twist and turn in this tale, sinking after the Court of Appeal turned against them and jumping (as much as 8% in the case of Close Brothers) when the Supreme Court allowed the appeal hearing.

Concerns about this volatility motivated the Supreme Court to deliver its judgment late in the afternoon so that traders would have time to absorb the news.

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FCA considering compensation scheme over car finance scandal – raising hopes of payouts for motorists

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FCA considering compensation scheme over car finance scandal - raising hopes of payouts for motorists

Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.

In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.

Read more: How to tell if you’ve been mis-sold car finance

The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.

It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.

The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.

What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

It has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.

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Car finance scandal explained

The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.

Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.

In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.

This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.

It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.

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Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.

“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”

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