Government plans green gas levy as consumers face soaring bills
The government is reportedly mulling plans for a levy on gas bills to help fund low carbon heating even as Brits face record energy bills.
In the next few weeks ministers are expected to unveil a carbon pricing scheme which will push up gas bills still higher according to The Times.
A government spokesperson for the Department of Business Energy and Industrial strategy said that while “no decision have been taken” on approach it hopes to “encourage people to take up more efficient technologies such as heat pumps and electric vehicles by removing levies on electricity over time.”
“The UK’s exposure to volatile global gas prices underscores the need to move away from fossil fuels to protect consumers in the long term,” the spokesperson added.
The comments come as customers face soaring gas bills amid a worldwide shortage of natural gas which is pushing prices to record levels. The price of natural gas today stands at 213 pence per therm up by 460.5 per cent compared to a year prior.
Industry experts have warned that UK households could face average annual energy bills of above £2,000 for the first time this year.
Yesterday, the business minister Kwasi Kwarteng was put under pressure by industry leaders from the steel, ceramics, chemicals and paper sectors who called on the government to help struggling companies which are being affected by runaway energy prices.
UK Steel boss Gareth Stace, who met with Kwarteng, said the government had offered no immediate solutions to the crisis. “We can’t wait until Christmas and beyond. Or even a few weeks. We need action now, it needs to be swift, decisive action,” he said.
The Times reported that the government intends to announce the new green energy strategy ahead of the COP26 UN climate summit which kicks off in Glasgow at the end of the month.
Read more: Labour says government ‘underplaying’ energy crisis as Kwarteng guarantees winter supply