GMB call on the government to shift £10 per week ‘green’ levies on household energy bills to general taxation
GMB CALL ON GOVERNMENT TO SHIFT £10 PER WEEK ‘GREEN’ LEVIES ON HOUSEHOLD ENERGY BILLS TO GENERAL TAXATION AS OFGEM HIKES ENERGY PRICE CAP
The Office of Budget Responsibility calculates that by 2022 the green levy to pay for renewables will cost £10 per week per household on household energy bills regardless of income and ability to pay which is completely unfair says GMB.
GMB London, the union for energy workers, is calling for the £10 per week green energy levies, used to pay subsidies to renewable energy operators, to be shifted from household energy bills to general taxation as OFGEM announces a much higher price cap on February 3rd.
The Office of Budget Responsibility calculates that by 2022 the green levy to pay for renewables will cost £10 per week per household on household energy bills regardless of income and ability to pay.
Media are reporting that the Government will announce a package later today (February 3rd) that will cut energy bills by £200 per year for the most vulnerable consumers before the OFGEM announcement.
This call by GMB London is in line with a long-standing policy set by GMB Congress on the payment of green levies. See below in notes to editors previous GMB London press release on this issue.
John Colquhoun, GMB London Region Organiser said:
“The reported £200 cut in the soaring energy bills for the most vulnerable consumers is less than half of the £10 per week green levies on the energy bills of the same households. Instead, the green levies should be shifted to general taxation.
“The Office of Budget Responsibility calculates that by 2022 the green levy to pay for renewables will cost £10 per week per household on household energy bills regardless of income and ability to pay. This is completely unfair.
“This OFGEM announcement of a much higher price cap provides the perfect opportunity for these levies to be transferred to general taxation- where they should have always been in the first place.
“Politicians conveniently forget that Parliament has levied these stealth taxes on household energy bills. Before anything else is done on the escalating prices these levies should be moved to general taxation.
“In addition, the payment of subsidies should be linked to renewable operators using a UK supply chain for building the 8,000 giant offshore wind turbines needed for net zero. This would require 30,000 steel fabrication jobs in yards around the coast of the UK.
“The current target of 60% local content for renewable energy sources is not adequate. First, it does not kick in for projects coming on stream before 2030. Second, it covers the ‘lifetime’ of a project not the construction phase. Third, it is voluntary. It should be made mandatory for the payment of subsidies.
“The UK badly needs the 30,000 fabrication jobs required to manufacture the 8,000 giant offshore wind turbines. These jobs would be based in the UK if payment of subsidies required this.”
End
Contact: John Colquhoun, GMB London Region Organiser 079 8075 3114
Notes to editors
2 November 2020: GMB London - BEIS consultation on how to pay subsidies for biomethane closes today
