Household bills are being hit by ‘excessive’ green taxes despite falling cost of renewable energy, report says
Consumers and businesses are paying too much for their fuel bills because of subsidies for green energy, according to a new Government-commissioned report.
CONSUMERS and businesses are paying too much for their energy because of “excessive” green taxes, a probe has found.
The Government-commissioned report by Oxford University Professor Dieter Helm revealed a series of “spectacularly bad” decisions have “burdened” households with higher green energy subsidies than necessary.
His report found that despite costs falling for renewable energy – as well as gas, coal and oil – the benefits have not been passed to consumers because ministers have locked the taxpayer into long-term contracts that overestimated those costs.
Energy firms claim that green taxes will cost the average household almost £150 from next year.
Prof Helm claimed that this was “significantly higher than it needs to be” in order to meet the Government’s aim of slashing the use of fossil fuels and promoting renewable energy.
He said forecasts of future energy costs had been too high, but “many of these excessive costs are locked in for a decade or more, given the contractual and other legal commitments governments have made”.
The Oxford don, who was commissioned to undertake the research after Prime Minister Theresa May vowed to stop “rip-off” energy bills, has called on the Government to simplify their interventions into the energy market.
Green energy taxes were introduced as part of the 2008 Climate Change Act.
Business and Energy Secretary, Greg Clark said: “I am grateful to Professor Helm for his forensic examination. We will now carefully consider his findings.”
