Connect with us

Published

on

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.

Read more:
Airbus and Tata Steel back push to spark green hydrogen strategy
UK ‘at risk of falling behind’ in race to become green hydrogen global leader
The future of energy may lie with hydrogen, but the journey to get there won’t be easy

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”.

Click to subscribe to ClimateCast with Tom Heap wherever you get your podcasts

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.”

Continue Reading

Business

British taxpayers’ £10.2bn loss on bailout of RBS

Published

on

By

British taxpayers' £10.2bn loss on bailout of RBS

British taxpayers are set to swallow a loss of just over £10bn on the 2008 rescue of Royal Bank of Scotland (RBS) as the government prepares to confirm that it has offloaded its last-remaining shares in the lender as soon as next week.

Sky News can reveal the ultimate cost to the UK of saving RBS – now NatWest Group – from insolvency is expected to come in at about £10.2bn once the proceeds of share sales, dividends and fees associated with the stake are aggregated.

The final bill will draw a line under one of the most notorious bank bailouts ever orchestrated, and comes nearly 17 years after the then chancellor, Lord Darling, conducted what RBS’s boss at the time, Fred Goodwin, labelled “a drive-by shooting”.

Money latest: Brits urged to leave energy price cap

Insiders believe a statement confirming the final shares have been sold could come in the latter part of next week, although there is a chance that timetable could be extended by a number of days.

The chancellor, Rachel Reeves, is likely to make a statement about the milestone, although insiders say the Treasury and the bank are keen to simply mark the occasion by thanking British taxpayers for their protracted support.

A stock exchange filing disclosing that taxpayers’ stake had fallen below 1% was made last week, down from over 80% in the years after the £45.5bn bailout.

More from Money

The stake now stands at 0.26%, meaning the final shares could be offloaded as early as the middle of next week, depending upon demand.

Total proceeds from a government trading plan launched in 2021 to drip-feed NatWest stock into the market have so far reached £12.8bn.

Based on the bank’s current share price, the remaining shares should fetch in the region of £400m, taking the figure to £13.2bn.

In addition, institutional share sales and direct buybacks by NatWest of government-held stock have yielded a further £11.5bn.

Dividend payments to the Treasury during its ownership have totalled £4.9bn, while fees and other payments have generated another £5.6bn.

In aggregate, that means total proceeds from NatWest since 2008 are expected to hit £35.3bn.

Under Rick Haythornthwaite and Paul Thwaite, now the bank’s chairman and chief executive respectively, NatWest is now focused on driving growth across its business.

It recently tabled an £11bn bid to buy Santander UK, according to the Financial Times, although no talks are ongoing.

Mr Thwaite replaced Dame Alison Rose, who left amid the crisis sparked by the debanking scandal involving Nigel Farage, the Reform UK leader.

Sky News recently revealed that the bank and Mr Farage had reached an undisclosed settlement.

During the first five years of NatWest’s period in majority state ownership, the bank was run by Sir Stephen Hester, now the chairman of easyJet.

Sir Stephen stepped down amid tensions with the then chancellor, George Osborne, about how RBS – as it then was – should be run.

Read more from Sky News:
Energy price cap to fall by 7%
Telegraph £500m sale agreed ‘in principle’

Lloyds Banking Group was also in partial state ownership for years, although taxpayers reaped a net gain of about £900m from that period.

Other lenders nationalised during the crisis included Bradford & Bingley, the bulk of which was sold to Santander UK, and Northern Rock, part of which was sold to Virgin Money – which in turn has been acquired by Nationwide.

NatWest declined to comment on Friday.

A Treasury spokesperson said: “We now own less than 1% of shares in NatWest which is a significant step towards returning the bank to private ownership and delivering value for money for taxpayers.

“We are on track to exit the shareholding soon, subject to sales achieving value for money and market conditions.”

Continue Reading

Business

Trump threatens EU with 50% tariff – as Apple faces 25% unless iPhones are made in US

Published

on

By

Trump threatens EU with 50% tariff - as Apple faces 25% unless iPhones are made in US

Donald Trump has threatened to impose a 50% tariff on the EU, starting from next month, after saying that trade talks with Brussels were “going nowhere”.

Mr Trump made the comments on his Truth Social platform.

It marks a fresh escalation in his trade row with the European Union, which he has previously accused of being created to rip off the US.

While the US has done deals with the UK and China to reduce their peak exposure to his trade war, the president’s EU threat, which would cover all EU imports to the US, would risk retaliatory measures from Brussels if carried through.

Money latest: Trump’s message to UK on energy bills

Mr Trump said of talks between his administration and the EU: “Our discussions with them are going nowhere! “Therefore, I am recommending a straight 50% tariff on the European Union, starting on June 1, 2025. There is no tariff if the product is built or manufactured in the United States.”

The European Commission was yet to respond to the remarks. Officials signalled there would be no comment until after a call between top US-EU trade figures due later on Friday.

Financial markets, however, were quick to take a view. European stock markets were sharply down across the board.

Please use Chrome browser for a more accessible video player

Explained: The US-UK trade deal

The FTSE 100 in London was more than 1.2% lower shortly after the Truth Social post appeared, while Germany’s DAX and the French CAC 40 were in the red to the tune of more than 2%.

US stock markets fell at the open on Wall Street. The tech-focused Nasdaq was down more than 1%.

The potential for damage to the global economy saw Brent crude oil sink by more than 1% to $63 a barrel.

Please use Chrome browser for a more accessible video player

‘US is losing’ trade war

The dollar took a hit too, as the news only intensified existing market worries this week about the sustainability of US government debt levels.

The pound was trading at levels last seen in February 2022.

Mr Trump said earlier that Apple will be forced to pay 25% tariffs on its iPhones unless it moves all its manufacturing to the US.

Apple shares dropped more than 2% in premarket trading after the warning, also posted on Truth Social.

“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or any place else,” wrote the president.

“If that is not the case, a tariff of at least 25% must be paid by Apple to the US.”

Production of Apple’s flagship phone happens primarily in China and India, which has been an issue brought up repeatedly by Mr Trump.

Read more:
Trump trade argument against UK doesn’t add up
Why Trump blinked in US-China trade war

On Thursday, the Financial Times reported Apple was planning to expand its India supply chain through a key contractor.

Taiwanese company Foxconn is planning to build a new factory in the Indian state of Tamil Nadu, according to the paper, to help supply Apple.

Sky News has contacted Apple for comment.

Continue Reading

Business

Trump’s latest phone negotiation tactic on tariffs likely to heighten EU retaliation threat

Published

on

By

Trump's latest phone negotiation tactic on tariffs likely to heighten EU retaliation threat

President Trump’s Friday flurry of pronouncements marks the return of negotiation by smartphone and may trigger another period of profound uncertainty for international trade and financial markets.

The threat of 50% tariffs against the European Union, issued hours before his trade representative met their European counterparts, is a show of presidential muscle surely designed to strongarm those on the other side of the table.

It is an escalation likely to heighten the threat of retaliation from Europe, and with a few keystrokes ends the brief period of calm that had returned to global trade and markets in recent days.

Money blog: Trump sends message to UK on energy bills

A red hat in Washington DC to support President Trump. Pic: AP
Image:
A red hat in Washington DC to support President Trump. Pic: AP

Talks in Switzerland between US and Chinese delegations a fortnight ago took the sting out of Sino-American hostility, negotiating three-figure tariffs that amounted to a mutual trade embargo down to manageable levels.

Financial markets had regained most of the losses sparked on ‘Liberation Day’ in April, when Donald Trump declared total trade war, and there was optimism that for all his bluster, there might be meaningful room for constructive compromise.

The UK even secured a deal of sorts, securing a reduction in auto tariffs in exchange for a reciprocal opening of agricultural markets.

More on Donald Trump

There will be no such deal for the EU in a hurry. A 50% tariff on all exports to the US is not only higher than the original threatened blanket tariff of 20% and double Mr Trump’s proposed 25% on European cars, it’s higher even than China.

European stocks predictably ended the week in decline, with car manufacturers including BMW, Volkswagen and Stellantis all down.

Please use Chrome browser for a more accessible video player

12 May: US and China reach agreement on tariffs

It remains to be seen whether this threat will stick.

Read more:
Trump trade argument against UK doesn’t add up
Why Trump blinked in US-China trade war

Follow the World
Follow the World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

Mr Trump has repeatedly blinked first in the trade war he started, backing down on global reciprocal tariffs when bond markets rebelled before caving in Geneva to reach an accommodation with China.

His grievances with Europe appear to have an extra edge however, and the consequences of the uncertainty he’s sparked will be far-reaching.

If this was the only thing he had announced on ‘Liberation Day’ it would still have been huge.

Continue Reading

Trending