The government is reportedly poised to shift environmental and social levies from electricity bills onto household gas bills, a policy move which has long been sought by climate advocates as critical to accelerating electrification of the economy and phasing-out fossil fuel heating. The costs of environmental and social levies, such as renewables subsidies and warm homes discounts for vulnerable householders, are currently paid for through electricity bills rather than general taxation, but as the power grid has decarbonised, the case for a change in policy has grown. Climate campaigners and think tanks have long argued that these green surcharges should be shifted away from power bills and instead onto household gas bills, given the urgent need to decarbonise the UK’s heating, which is overwhelmingly supplied met by fossil fuel gas.
Business Green 30th Sept 2021 read more »
A squeeze on household finances will become more acute as a new, higher energy price cap takes effect from Friday. Typical default domestic energy bills are rising by £139 a year, and prepayment meter customers will see a £153 increase. About 15 million households in England, Wales and Scotland are affected. The cap has come under the spotlight owing to the crisis among suppliers, which has seen nine firms fold.
BBC 1st Oct 2021 read more »
The poorest households are at risk of suffering the most if Britain hikes gas bills to fund its switch to green power, a government infrastructure tsar has warned, as energy prices surge to record highs. Bridget Rosewell, a member of the National Infrastructure Commission, said that ministers are in danger of heaping costs on to those who can least afford it with plans to partly fund the country’s £50bn-a-year switch to renewables through a change to bills. It comes amid soaring wholesale gas and power prices, which are putting companies out of business and piling pressure on the public. It emerged on Thursday night that Ofgem, the energy regulator, is talking to City advisory firms about stepping in to act as special administrator in case a large energy supplier collapses. The insolvency company Teneo is among those holding discussions. The Government is expected to set out proposals next month to move surcharges for green energy off electricity bills and on to gas bills.
Telegraph 30th Sept 2021 read more »