Green Tax Removal Will Lower Energy Bills
By Anne Lewis-Schneider
In a consideration that is currently being discussed by ministers, it has been said that electricity and gas bills could be cut by an estimated £75 per annum. This could be achieved by reducing green levies currently being added to bills by energy companies at present. In a statement Prime Minister David Cameron has said that he is now more than ever determined to roll back the costs for social and environmental charges that are currently being added to consumer bills. These green levies are being used to subsidise home insulation projects and for the construction of wind farms and other renewable energy enterprises.
Energy companies have been blaming the subsidies for the latest round of electricity and gas increases and say that these levies are adding £112 a year to the average household dual fuel bills. The proposed roll back comes after the recent round of increases by the Big Six Energy Companies which have seen bills rise by an average of 8%. With promises from Ed Miliband to freeze energy prices if his party win the next election, Chancellor George Osborne is debating on how to change energy subsidies and environmental projects, with a thought to changing them from consumer billing to general forms of taxation.
It is expected that an announcement will be made during the Autumn Statement on 4th December this year. The Energy Companies Obligation (ECO) scheme, if paid through general taxes, would reduce the average household energy bill by £69 annually. The Department for Energy and Climate Change (DECC) have made known that it is government policy to review energy prices on a regular basis but Ed Davey is adamant that the levies are going to stay. He has been putting pressure on Energy Companies of late to be more open and transparent about exactly how much it costs them to administer the ECO scheme. This scheme helps the needy and vulnerable in obtaining more effective boilers and for loft insulation in a bid to make homes more fuel effective.
The Big Six have said that they would welcome the removal of green levies from their bills, onto the general taxation. All that remains is for the energy companies to agree to drop their tariffs so that the consumers would benefit from the cost reduction. Government has said that the energy companies would have to guarantee this before any reforms could take place.
Head Office: EATON HOUSE, STATION ROAD, LEEDS, LS20 8XB Company Registration: 4704157 Vat Registration: 817013852