Ground-breaking boiler installations set to ignite

ENERGY saving company Flowgroup says the first commercial installations of its ground-breaking new boiler can begin this week.

This followed the awarding of a Microgreneration Certification Scheme accreditation for its Flow mCHP boiler.

This means that the electricity that the Flow boiler generates will qualify for the Feed-in Tariff scheme, a Government scheme that provides payments for the use of small-scale renewable or low-carbon electricity generation technologies in the home.

The Cheshire-based company has also been boosted by indications from the Treasury that the 5% reduced VAT rate should apply to the Flow boiler.

However, the company is still awaiting publication of the European Commission’s VAT Action Plan and final confirmation.

AIM-listed Flowgroup is continuing to grow its home energy business, and currently has more than170,000 customer fuel accounts registered or being processed through the switching cycle.

Chief executive Tony Stiff said: “Receipt of MCS accreditation and the first commercial installs of our Flow boiler this week are an extremely important step in starting the process of establishing our ground-breaking technology in the marketplace.
 
“We are also excited about our plans for further Flow boiler product and performance enhancements that we are working on in the development pipeline as well as continued cost-down improvements.
 
“While there has not yet been final confirmation that the VAT payable on the Flow boiler and its installation will remain at 5%, we believe that the early signs are that it will and we look forward to this matter being resolved once the European Commission publishes its VAT Action Plan.
 
“With more than 170,000 customer fuel accounts, we are very pleased with the rapid growth demonstrated by Flow Energy throughout Q1, we have long held the view that the energy industry’s current state of flux presents opportunities for nimble companies like Flowgroup with our combination of innovative products and high quality service.

“We believe today’s positive updates demonstrate that and position us well for the future.”