Households will pay a £170-a-year Net Zero levy on energy bills in the coming days, with Rishi Sunak and Jeremy Hunt accused of “slyly” shifting costs back to consumers. The Telegraph has the story.
The Telegraph has learned that the two-year suspension of green levies announced last autumn is to end from the beginning of July, after just nine months.
The cost of the levies was shifted from consumer bills to be funded instead by the Government, following a year-long campaign by energy firms and MPs amid spiralling gas, electricity and food prices last year.
It will again be imposed on consumers, although there has been no formal announcement. Sir Jacob Rees-Mogg, who was Business and Energy Secretary when the costs were taken away from consumers last year, said: “Green levies are part of the problem behind the U.K.’s particularly high electricity prices. They ought to be abolished but should fall on general taxation until that can happen. The ambition for Net Zero must not make us cold and poor. Any new or re-imposed charge ought to be announced to Parliament first and not slipped through slyly.”
The decision to fund the green levies via general taxation, as opposed to consumer bill payments, was announced by Kwasi Kwarteng, the then Chancellor, when he unveiled the energy bailout used by the Government to subsidise consumer bills since its creation in October.
At the time, the Government said: “Schemes previously funded by green levies will also continue to be funded by the Government during this two-year period to ensure the U.K.’s investment in home-grown, secure renewable technologies continues.”
But the Treasury will stop funding the cost – which has risen from £150 last year to £170 now – from July, meaning that it will be borne by consumers once again.