The Director of Net Zero Watch has warned Boris Johnson’s Government that a windfall tax won’t suffice to cushion the effect of rising inflation on household energy bills. Instead, he calls on the Government to cut green levies – environmental and social obligation costs that finance energy policies. Conservative MPs have been urging UK Prime Minister Boris Johnson to scrap them, as they claim green levies account for a quarter of energy bills.
In a rewed effort to convince the Government to act, Mr Peiser said: “The energy crisis is diabolical.
“Millions of families are struggling.
“Something has to be done.
“And the government has no idea what they can do.”
Parts of energy levies costs go towards large-scale renewable energy projects and fund environmental policies.
However, contrary to what some conservative MPs claim, Full Fact reports that green levies do not account for 25 percent of energy bills, but for 7.8 percent of the bill.
So far, Boris Johnson has ruled out scrapping green levies on energy bills despite Tory calls to scrap them.
Mr Peiser continued: “We’ve been calling for months now to get rid of the green levies on the bills, the VAT on the bills.”
“I mean the government is all over the place on the windfall tax.
“I mean the country is in a terrible, terrible mess.”
“Every household currently pays roughly £150 on the green levies.
“And they have to pay another roughly £20-50 on the cost of living because the businesses have to pay the green levies.
“And they are passing that on to consumers.
“So, we’re talking roughly altogether a cost to consumers of roughly £400 per household.
“So that’s a sizeable amount.
“It doesn’t even cover the rise in costs, but it would help minimise the pain.
“And come October, millions of families will struggle to pay their bills.”