The new UK Prime Minister’s most urgent task is to deal with the unprecedented rise in energy bills scheduled for October. Long-term energy security solutions like energy efficiency, new renewables, and the electrification of heating and industrial processes will be essential. But lowering bills quickly is the most critical concern.

This E3G briefing “Green levies: How to remove policy costs from bills fairly and effectively” outlines how the government can remove levies from bills without damaging important fuel poverty programmes or investor confidence by: 

  • Switching Renewable Obligation Certificates to Fixed Price Certificates by the end of 2023 and taking the costs into the exchequer to cut policy costs in half.  
  • Covering Feed-in Tariff payments by paying suppliers directly and passing the savings on to consumers. 
  • Issuing a temporary rebate using the Energy Bills Support Scheme mechanism to cover the cost of the WHD and ECO this winter, and of the RO until 2023. 
  • Suspending plans in the Energy Security Bill for new levies on bills. 

Access the briefing here