Clean Heat Market Mechanism: compliance, enforcement and appeals
Source: gov.uk (2025-03-06)

How the Clean Heat Market Mechanism (CHMM) is enforced, what to do if you're unhappy with a decision and how to appeal.

You must must report your fossil fuel boiler sales if you’re classed as a ‘scheme participant’ or ‘near-threshold supplier’ in the CHMM.

Check if the CHMM applies to you and the timelines for action (https://www.gov.uk/guidance/clean-heat-market-mechanism-who-it-applies-to-annual-tasks).

The Environment Agency carries out compliance and enforcement activities as CHMM scheme administrator.

If the CHMM applies to you and you do not meet the requirements of the scheme, the Environment Agency may send you:
- an ‘information notice’ – when they need more information
- a ‘notice of determination’ – when they make a decision
- a ‘penalty notice’ – when they impose a civil penalty
The deadlines for compliance are set out in the CHMM Regulations (https://www.legislation.gov.uk/uksi/2025/81/made) and the Environment Agency cannot change these dates.

The Environment Agency will publish its approach to the enforcement of the CHMM scheme in annex 2 of its enforcement and sanctions policy (https://www.gov.uk/government/publications/environment-agency-enforcement-and-sanctions-policy).

The CHMM Regulations (https://www.legislation.gov.uk/uksi/2025/81/made) contain the:
- civil penalties in Part 8
- criminal penalties in Part 9
Unhappy with a decision

If you’re unhappy with a CHMM decision the Environment Agency has made, email xxx@xxx.xx (mailto:xxx@xxx.xx) to raise your concerns.

You can also request an independent internal review of a decision, unless the decision is one that can be appealed (see the ‘Appeals’ section). Do this by emailing xxx@xxx.xx (mailto:xxx@xxx.xx) within 14 days of receiving the notice. Requesting a review of the decision does not:
- suspend the effect of the notice
- affect the time limits within which you can make a statutory appeal
If you’re unhappy for any reason with an external verifier, discuss it with them first. If you’re still not satisfied, you should raise your concerns with the relevant body. You should also email xxx@xxx.xx (mailto:xxx@xxx.xx) to tell the Environment Agency about this.

Appeals

You can appeal against these enforcement actions:
- a determination that a member of a group of undertakings is the responsible undertaking
- a determination of fossil fuel boiler sales
- a decision that a scheme participant is liable to pay because it does not have enough CHMM credits for its low-carbon heat target
- a decision to correct, or not to correct, the CHMM registry which records low-carbon heat targets and CHMM credits
- a decision to send a penalty notice
If enforcement action is taken, you will have the right to appeal. Appeals will be determined by the General Regulatory Chamber of the First Tier Tribunal (https://www.judiciary.uk/courts-and-tribunals/tribunals/first-tier-tribunal/). The penalty notice will include details on how to make your appeal.

How to report your data

Check how fossil fuel boiler sales, targets and credits work (https://www.gov.uk/guidance/clean-heat-market-mechanism-fossil-fuel-boiler-sales-targets-and-credits).

Register and report your data using the Manage the Clean Heat Market Mechanism service (https://www.gov.uk/guidance/clean-heat-market-mechanism-report-online-get-credits).

For help

Contact xxx@xxx.xx (mailto:xxx@xxx.xx) if you’re unsure if the CHMM applies to you.