Call for hidden taxes to come off energy bills

Over 120 organisations have written to the government urging action in the Autumn Budget to reduce taxes on electricity.

The letter, co-ordinated by E3G and Energy UK, highlights that the UK’s energy costs are some of the highest of any developed nation, and 70% higher now than they were in 2021. It notes that this has been a significant contributor to household energy debt rising towards £7 billion and caused over 40% of British businesses to cut investment.

It said energy bills remain high due to both high gas prices and non-fuel costs placed on bills. The conflict in the Middle East has pushed up gas prices considerably – at one point reaching a three year high.

However, non-fuel costs such as government levies also contribute a significant proportion of the bill.

The letter highlights that moving levies to the Exchequer would lower business electricity prices by up to 20% and bring the total average household energy bill reduction to as much as £250 a year.