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Government criticism follows insolvency

It was recently announced that Falmouth-based Earth Energy, an installer of ground source heat pumps, had been forced to call in administrators.

Following the news, Simon Lomax, Kensa Engineering managing director, expressed sympathy with the company’s predicament and blamed the Government for much of the company’s misfortune:

“News of Earth Energy’s collapse is no surprise.

“There is no doubt that the slow-down in the housing market, and the more recent public spending cutsN have created a challenging business environment and the Government’s continued delay in the launch of its flagship Renewable Heat Incentive, designed to reward homeowners and businesses who install heat pumps, has placed many companies in a difficult position.

Kensa’s chairman, Richard Freeborn, has also criticised the Government’s review of the Feed-in Tariff:

“They should have got it right at the outset. Now, it would appear that the Government intends to reduce the Feed-in Tariff levels for certain types of installation.

“Unduly generous tariffs, which have been available for almost a year, have contributed to a slowdown for many in the ground source heat pump sector because there is a heightened interest in technologies where an incentive is already available.

“Bizarrely, Government projections make clear that ground source heat pumps will contribute far more significantly to carbon reduction targets yet we still await news of the RHI.

“We need Government to announce the RHI, and the tariffs, now, before more renewable heat companies follow Earth Energy into oblivion.”

Mr Lomas continued: “That said, Kensa is continuing to grow its business and will shortly announce record turnover and profits.

“As a result, we hope that we could provide employment for some of the Earth Energy employees if the administrator is unable to find a buyer.”