Over 120 Groups Urge Chancellor to Scrap Energy Levy Hidden on Bills
Major business bodies and charities demand the removal of levies totaling 10% of energy bills that currently fund government policies and renewable projects.
More than 120 organizations, including Energy UK, CBI, End Fuel Poverty, and Age UK, have written to UK Chancellor John Healey urging the elimination of "hidden taxes" added to consumer energy invoices. These signatories request that levies amounting to 10% of energy bills, intended for policy implementation, be paid directly by the government instead. The letter specifically targets funds currently used for renewable energy projects, the warm homes discount scheme, nuclear power plant construction, and the feed-in tariff programme. Former Chancellor Rachel Reeves previously shifted 75% of this funding to taxation last year. The organizations argue that transferring these costs off bills would lower the average household bill by up to £250 annually. Electricity prices for businesses could drop by 20%. Ed Matthew from E3G stated the UK is sabotaging its own cost-reduction efforts by taxing electricity.