Pay for energy through taxes says Renewable UK

Take green charges off bills and put it onto general taxation says the trade body arguing it could save us cash
 

RenewableUK is urging the Chancellor to use the Autumn Budget to pull energy policy costs off electricity bills and fund them through general taxation instead.

The group says the move would cut household bills fast and give industry the confidence to invest.

Shifting levies into taxation could save families £150–£200 a year.

RenewableUK says it is a fairer system because support would be based on income not energy use, giving the biggest benefit to low-income households.

Germany already does it. So do several other countries. The group says the UK is now the outlier.

The levies in question include the Capacity Market, balancing charges and renewable-support schemes such as the Renewables Obligation, Feed-in Tariff and Contracts for Difference.

These policies stabilise the grid and have pulled billions of private investment into clean power.

RenewableUK wants the Chancellor to go further.

It is calling for the British Industrial Competitiveness Scheme to be fast-tracked to cut costs for steel, cement and chemicals.

The policy is in the Government’s Industrial Strategy but there is no timetable, leaving manufacturers unable to plan.

The group says the scheme would unlock investment and boost UK supply chains, especially in offshore wind and advanced manufacturing.

It is also pushing for a national Just Transition Fund to mirror Scotland’s £500m model. The fund would support workers moving from oil and gas into renewables and back training, apprenticeships and retraining as the sector races to hire an extra 400,000 people by 2030.

RenewableUK’s Executive Director of Policy Ana Musat said: “Implementing the British Industrial Competitiveness Scheme would reduce bills for around 7,000 of the highest electricity users, making UK industry more competitive on the global stage while also accelerating the transition to clean power.”