Green taxes will hike up energy bills by almost £300 by 2020

October 14, 2013 by  
Filed under Green Energy News

Critics say the policies are already costing jobs and driving firms to other countries without cutting pollution.

The report by the Department for Energy and Climate Change shows that green policies account for 17 per cent of the average household electricity bill today, but by 2020 this is expected to soar to 33 per cent.

In cash terms the cost of the taxes will rise from about £138 to £286.

The taxes include the Renewables Obligation which subsidises green energy such as wind farms, a tax on carbon emissions to encourage firms to use cleaner energy more efficiently and cash for the vulnerable to help pay for bills.

Other levies include the Energy Company Obligation making energy firms spend £1.1billion over the next two years to make homes energy efficient.

The Coalition faces a battle over energy policies. Prime Minister David Cameron has hinted at cuts to green subsidies while Chancellor George Osborne has made it clear that he does not want them to make Britain uncompetitive. But Liberal Democrat Business Secretary Vince Cable says that axing green policies would be “short-sighted and foolish”.

TaxPayers’ Alliance chief executive Matthew Sinclair, said: “Many families are going to struggle to pay their energy bills this winter, but instead of helping, politicians are adding to the problem with expensive green taxes.

“Rather than meddle in the market even more and risk the lights going out, the Government should scrap useless energy policies that make it much harder for people to make ends meet.”

Comments are closed.