Besides the much higher VAT revenue flowing into the Treasury, the Climate Levy is adding hundreds of pounds to bills. Green levies add £11 billion-a-year in costs to consumers – putting £150 a year on the average household electricity bill, and a further £250 per household on the annual cost of living, a total of £400 per household per year. The levies on business have knock-on effects on wages and jobs.
Given green campaigners keep telling us that solar and wind energy are now cheaper than fossil fuels it would be logical to drop the levy that subsidised them in the past. Renewables seem to be in line to take both high market prices for energy and the subsidies, thus generating windfall profits.
Dr Benny Peiser, Net Zero Watch director says
“ministers are realising that billions in subsidies for renewable energy is no longer compatible with the cost of living crisis, threatening the welfare of tens of millions of households and undermining economic and political stability. The longer the Government delays terminating handouts for renewable energy investors the higher the economic and political cost for consumers, businesses and the government.”
The consumers are being ripped off by renewable energy merchants double dipping – high prices and subsidies for what they boast is low-cost energy. Now is the time to lose the levy…
Factsheet: The Cost of Green Levies (PDF)