The two-year suspension of green levies announced last autumn is to end from the beginning of July, The Telegraph has learned
Households will pay a £170-a-year green 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 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 spiraling 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 UK’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.”
A Government spokesman said: “The Government pledged to provide £150 to covering green levies included in energy bills for two years through the Energy Price Guarantee. By the end of June, this Guarantee will have saved a typical household in Great Britain around £1,100 in total, which includes the £150 we committed to.
“However, the EPG will no longer be in effect from July 2023 as Ofgem’s price cap will be set below the EPG’s discount level, meaning customers will pay energy rates in full, including for green levies.
“Levies more than pay for themselves by driving investment in renewables and other generation technology and have saved consumers money on their energy bills overall over the past 10 years.”
Energy firms began calling for the charges to be funded from general taxation in September 2021, when Michael Lewis, the chief executive of Eon UK, described the levies as “a regressive tax” that “would be better in the overall tax base.” Centrica, the owner of British Gas, supported its rival’s call. Robert Halfon, now an education minister, was a prominent backbench proponent of the move.
Andrew Montford, director of the Net Zero Watch campaign group, said: “Shuffling costs from consumers to taxpayers and back to consumers again is a waste of everyone’s time and money.
Green levies need to be cut, to give relief to the UK economy as a whole.”
Ofgem, the energy regulator, did not respond to requests for comment.