Tag: Energy Mix

No new levies on gas bills promises Minister

Efforts to cut energy bills and warm homes will not come with a new gas bills levy as had been reported over the festive period.

Speaking in the House of Commons, the Energy Secretary labelled news reports of a new charge “absolute nonsense”. Ministers also repeatedly vowed to publish the Government’s Warm Homes Plan and fuel poverty strategy “soon”.

A spokesperson for the End Fuel Poverty Coalition, commented:

“It’s a relief to hear that recent media reports of a new levy on gas bills were not based in any reality.

“With around a fifth of fuel poor homes suffering from high levels of carbon monoxide due in part to ageing gas boilers and the North Sea basin in geological decline and unable to provide enough gas to heat our homes from 2027, it’s clear we need to move away from gas as our main heating source in the long term.

“While bringing down electricity prices is key to this, there are plenty of other options the Secretary of State should consider before putting up gas bills. For example, we could see GB Energy invest in infrastructure so some of these costs could be taken off bills. The Government could reform how electricity pricing is set and reduce the impact of the role of energy market trading on prices. And the Treasury could step in and use the receipts from the Windfall Tax to wipe out the record levels of energy debt built up by households due to the profiteering by the energy industry during the crisis.

“These sort of changes would deliver lower energy bills and a fairer energy system for everyone.”

Wind power set for further investment

The government has unveiled its long-awaited Contracts for Difference “AR7 budget” for offshore wind, with £900 million for fixed projects and £180 million for floating wind.

The announcement comes as new UCL research shows wind power has already saved UK consumers billions, cutting wholesale prices and shielding homes from volatile gas markets.

Yet with strike prices of £113/MWh for fixed wind and £271/MWh for floating, concerns remain that bills may increase, while ministers insist that the government “won’t buy at any price.”

A spokesperson for the End Fuel Poverty Coalition, commented:

“The North Sea is running out of gas and new gas power plants could take the best part of a decade to even get off the ground. Britain simply can’t rely on fossil fuels for its energy security.

“That’s why renewables are so important. They cut our dependence on gas imports and prices and create jobs where they’re needed most. But this transition has to be managed fairly.

“The public deserve to clearly see how they benefit, through lower electricity prices, greater transparency on how the strike prices work, and clear profit caps that ensure developers don’t cash in at consumers’ expense.”