Energy Secretary Miatta Fahnbulleh is urging Chancellor John Healey to cut renewable levies from household energy bills ahead of a New Year price rise. Healey plans targeted support for the poorest, raising the Warm Homes Discount from £150 to £250 at a cost of £600mn, benefiting 6mn of 29mn UK households. This follows a six-month VAT cut on electricity, saving households £45.
With the energy price cap forecast to rise 16% to £1,999.28 annually, ministers are concerned. Fahnbulleh wants to shift remaining Renewables Obligation Certificates (ROCs) and feed-in tariff costs to general taxation. Energy UK supports removing levies and increasing aid for vulnerable households, where energy debt exceeds £5bn.
Industry leaders express concern over winter supply and consumer debt, though El Niño may ease heating demand. Long-term, a rising-block tariff is under discussion, though it faces resistance due to electrification goals.
Source: Financial Times Companies · Summarized by HeadlinesBriefing