Industry sources said ministers were preparing to introduce heat pump targets in a move that would impose a “boiler tax” on households next year.
Energy Secretary Ed Miliband is expected to introduce the policy from April, despite warnings it will increase the cost of new boilers.
Under the plans, boiler manufacturers will be heavily fined if they fail to meet targets for the number of heat pumps they must sell each year. Manufacturers have warned it will force them to add up to £180 to the price of a boiler, although campaigners have accused them of black-marketing.
Officials have said the sector-specific scheme will definitely be introduced next year, sources told The Telegraph. A government source insisted no final decision had been taken.
The Clean Heat Market Mechanism (CHMM) would set the number of heat pumps companies must sell as a percentage of their total boiler sales. It was originally drawn up by the Conservatives and was due to come into force earlier this year before being shelved following a backlash.
Shadow Energy Minister Claire Coutinho said implementation had been delayed until at least next April and privately said she wanted to kill the policy.
He said: “I scrapped this policy last year because I felt strongly that we needed to think again. This is a classic example of a policy designed for the green lobby and vested interests rather than the consumer.
“This will increase the cost of owning a boiler by hundreds of pounds as many ordinary families cannot afford a heat pump.
“If Labour keeps this going, as well as cutting the Winter Fuel Payment, promises of saving consumers’ bills will become an even bigger mockery.”
Mr Miliband is now preparing to revive it, with industry resources saying officials at his department have told them the targets will be introduced next year. Manufacturers and suppliers have been warned that legislation to introduce the scheme will be introduced in November, suggesting a start date of April.
An industry source said: “Ministers and officials have met with boilermakers with a view to introducing the CHMM in 2025. What has not yet been finalised are the details of the size of the penalty. There needs to be a discussion on whether it is set at an appropriate level.”
Under the Conservative Party plans that Mr Miliband inherited, manufacturers would have to ensure that at least six per cent of their total sales were from heat pumps. They would be fined £3,000 for every missed sale and companies were warned they would have to pass on the cost of millions of pounds in fines to customers.
Industry experts say demand for heat pumps, which are much more expensive than boilers, is not enough to meet targets.
A second source said that “as far as we know, the CHMM is scheduled to start in 2025” but added that there had been little involvement from officials. The source said producers were still hopeful that ministers would “reconsider or make amends for the punitive measures that the policy will implement”.
Around 1.5 million new boilers are installed each year, with most of them installed during the winter months when appliances are used the most.
It is estimated that a quarter of these (around 375,000 people a year) live in retirement households, many of whom have lost their £200 winter fuel allowance.
Boiler manufacturers temporarily increased their prices by £120 last January when they believed a four per cent target for heat pump sales was about to be implemented. They reversed the price increase and issued refunds when the policy was delayed.
Industry sources said that if Mr Miliband presses ahead with his planned six per cent target this year, it would mean a £180 increase would be needed in January.
Some green groups have accused boilermakers of using the policy as an excuse for scaremongering and “price exploitation”.
Jess Ralston, head of energy at the Energy and Climate Intelligence Unit, said: “The boiler tax was a self-imposed price increase by boiler manufacturers to lobby against the heat pump policy so they could continue selling gas boilers for longer.
“If the UK does not start moving away from gas boilers, we will have to import more gas from abroad as North Sea production continues its inevitable decline, so this is an energy security issue.”
Andy Manning, head of energy systems transformation at Citizens Advice, added: “Boilermakers should not be increasing their prices again in response to a scheme to help homes across the country switch to clean energy. Instead, they should focus on meeting the requirements of the scheme.
“If reinstated, the Government should not weaken the Clean Heat Market Mechanism in response to similar actions by generators. Doing so will reward behaviour that leaves many people out of pocket and leave us all exposed to volatile gas prices for longer.”
Fewer than 37,000 certified heat pump installations were recorded last year, well below the 90,000 needed to meet the six per cent target.
While in opposition, Mr Miliband pledged that if Labour won the election it would “support the Clean Heat Market Mechanism”. Speaking in March, he said: “On the Clean Heat Market Mechanism, we will have to deal with the things we have inherited from the government.”
A Department for Energy and Climate Change spokesman said: “The energy shocks of recent years have shown the urgent need to improve British homes and secure our energy independence.
“Our Warm Homes Plan will set out a range of measures to support low-carbon heating, including heat pumps. Our ambitious plans will protect billpayers, reduce fuel poverty and put the UK back on track to meet our climate targets.”