Energy bills to fall £50 as green taxes are cut: Power chiefs will be ordered …

November 24, 2013 by  
Filed under Green Energy News

Jon Rees, Financial Mail On Sunday

17:33 EST, 23 November 2013


17:33 EST, 23 November 2013

Energy bills will drop by a minimum of £50 a year under Government plans to cut back green and social levies on household bills, according to industry sources.

The Government is expected to announce a range of measures to shift some such charges away from utility bills and instead finance them through general taxation, along with other changes.

The move, expected to be announced in the Chancellor George Osborne’s Autumn Statement on December 5, will come with a demand that energy firms cut bills still further and bear the cost themselves.

Down: Energy bills are expected to drop by a minimum of £50 a year under new Government plans

Down: Energy bills are expected to drop by a minimum of £50 a year under new Government plans

Prime Minister David Cameron promised earlier this month to ‘roll back’ the environmental charges that push up bills. He spoke out in response to a wave of public outrage over sharply rising costs.

The average annual dual fuel energy bill is £1,320, which includes green and social charges of £115.

One target of the shake-up is likely to be the Warm Homes Discount, which is used to reduce bills for two million of the poorest households at a cost of £135million – adding £15 to every annual bill.

‘It is much easier for the Government to put a social levy, like the Warm Homes Discount, into general taxation rather than the far more controversial green measures,’ said a senior executive at a leading energy provider.

Deputy Prime Minister Nick Clegg has already hinted that the Warm Homes Discount could be financed through general taxation.

The Energy Companies Obligation is also likely to be affected by the changes. This compels the major power suppliers to spend £1.1billion over the next two years on insulation and other energy-savings measures for people in low-income areas and those on disability benefits. It adds £60 to annual bills and is scheduled to run until 2015.

Energy firms expect the Government to extend the timetable for them to fulfil their obligations under the scheme to 2017, which would spread costs and reduce bills. Energy firms have said they will reduce price rises if green levies are cut.

The Coalition is split on its green agenda, with the Prime Minister this week reportedly urging advisers to ‘get rid of all the green crap’ from energy bills, though Downing Street denied that he had used these words.

The Liberal Democrat chief secretary to the Treasury Danny Alexander said Tories talking about axeing green levies were ‘full of crap’.

Energy Secretary Ed Davey hinted to The Mail on Sunday last week that another of the green levies, the carbon price floor – which penalises energy generators that emit carbon dioxide – would not be scrapped, as the energy industry had hoped.

The charge costs the industry £16 for each ton of carbon dioxide emitted.

This will rise to £30 by the end of the decade, adding almost £50 to energy bills by 2020. However, the charge may be reduced.

Comments (13)

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Pattaya, Thailand,

1 hour ago

Here in Thailand ,there are no green taxes and electricity prices have only had one small increase in the 8 years we have been here ,how come they can generate electridity far cheaper than in the UK ?

Old Chap,

Caribbean, Grenada,

1 hour ago

See ….. With one sweep of the magical wand they turn it from a green tax into general tax. Thank goodness it,s not a tax any more. Thank you so much you snivelling fixers.

Joseph Taylor,

new york, United States,

1 hour ago

Since I started fre+lancing I’ve been bringing in $90 /h¿ I sit at home and i am doing my work from my laptop. Th¿ best thing is that i get more time to spent with my family and with my kids and in the same time i can earn enough to support them… You can do it too. Start here———


San Antonio,

3 hours ago

Green = Greed.

Life is a pie chart,

UK, United Kingdom,

3 hours ago

Add energy costs to CPI RPI inflation figures (where they should be) and see how far the government would go! I can not believe that the have bowed to energy companies and reduced green taxes without any commitment? but it goes to show how much control such companies have over government, they can make em jump, well its our turn now to make energy and the government jump to our tune!!

John S,

Bromley, United Kingdom,

3 hours ago

The political parties are trying to score brownie points by shaving a few quid off our bills. The reality is that our bills will still continue to increase by “eye-watering” amounts every year to pay for all the “green subsidies” arising as a result of government policies brought in by the last government, approved by the parties in the current coalition. We are too far down the road to turn back. Renationalisation won’t help (it would probably make matters worse). Voting for UKIP, Respect or the Raving Loonies is no solution either. REALITY time, folks. Get the best deal you can (even consider the unthinkable – payment by monthly debit debit!!!) and get insulating and cutting out waste.

Head of,

Steam, United Kingdom,

4 hours ago

This is a cut of less than 5% and doesn’t even cover this winter’s increases. Are the government going to pay for the next decade’s 250 billion pound infrastructure renewal projects through general taxation as well, or is this 5% offer just an irrelevant cynical distraction before our bills double?



4 hours ago

ah so a 50 quid cut…it’s more than offset by the 200 quid bill rise this year. So in fact my bill is still going up by 150 quid. Where is the good in that then?

John S,

Bromley, United Kingdom,

4 hours ago

The smaller energy companies are exempt from most of the “green taxes” (which is the only reason why they are any cheaper). How will this affect them?

John S,

Bromley, United Kingdom,

4 hours ago

So that’s why my bill is so high. I’m subsidising poor people! And this will mean more job cuts by the energy companies so there will be more poor people to subsidise!

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