Consumers are in line to pay an extra £170 in green bills as the government’s energy price cap ends for most billpayers.
John Glen, the chief secretary to the Treasury, said on Sunday that ministers were considering what to do about the taxes, which have been paid by the government since last year and are designed to fund schemes such as subsidized home insulation. .
As part of the energy price guarantee announced by former chancellor Kwasi Kwarteng last year as part of the government’s response to soaring energy bills, the Treasury has temporarily removed the charges from customers’ bills. and it is paid from the taxpayer’s income. At the time they cost £150 per household, but now they cost £170.
Since then, however, energy prices have fallen below the level set by the price guarantee, and as a result households without prepayment meters from July 1 will no longer benefit from the government discount . Once the cap is lifted, green levies will once again fall on billpayers rather than the Treasury.
The Telegraph first revealed on Sunday that the green levies were due to shift from the taxpayer to the consumer.
Glen told Sky News on Sunday: “We’re making assessments all the time about how we’re going to deal with the supply challenges across the UK and the different input costs. I can’t confirm it this morning, but We’ll see everything carefully. The chancellor will meet with the regulators next week.
He added: “All decisions are viewed in terms of what we can do to make the situation better while continuing to recognize that curbing inflation must remain our priority.”
The news sparked an angry response from Jacob Rees-Mogg, who was business and energy secretary when the temporary layoffs were announced last year. He told the Telegraph: “Any new or re-imposed charges must be announced to parliament first and not be subtle.”
Households will not, however, have to pay an extra £120 levy to help fund hydrogen fuel projects. The energy bill contains a clause that allows ministers to impose such a tax to help fund low-carbon energy projects as part of the UK’s move to net zero.
Grant Shapps, the energy secretary, told the Telegraph on Saturday that he had decided not to impose additional costs. “I don’t want to see people’s housing bills unnecessarily blamed for this,” he said.
