Energy Secretary suggests green transition costs could shift to taxpayers
UKPulse News Desk
Energy Secretary Miatta Fahnbulleh is exploring funding green infrastructure through general taxation instead of green levies on energy bills. This could potentially save customers an average of £120 annually.
- Energy Secretary Miatta Fahnbulleh is investigating funding green infrastructure through general taxation.
- This move could remove billions of pounds worth of green levies from energy bills.
- Customers could save an average of £120 per year, but taxes might increase by up to £3bn.
Energy Secretary Miatta Fahnbulleh has indicated that the cost of the UK's green transition could be spread among taxpayers, rather than primarily through energy bills. The government is examining how green projects are funded, including the possibility of moving green levies from bills to general taxation.
Such a change could result in an average annual saving of £120 for customers. However, it could also necessitate an increase in taxes by as much as £3bn.
Ms Fahnbulleh stated on the Guardian’s Politics Weekly podcast that the government needs to consider "the costs and how we recover it in the most fair way." She added that her measure of success in her role is whether she can reduce bills.
What this means for you: Your energy bills could potentially decrease by an average of £120 per year, but this could be offset by an increase in general taxation.