The boss of British Gas owner Centrica, Chris O’Shea, has urged Chancellor Rachel Reeves to raise taxes to bring down energy bills. The Telegraph has more.
Chris O’Shea said the Chancellor must act to prevent hard-up households from shouldering the cost of Ed Miliband’s Net Zero transition.
In particular, he signalled that Centrica would support plans to shift green levies from household bills to general taxation.
Speaking on BBC Radio 4’s Broadcasting House, he said: “The cost of the energy transition is not small.
“It’s not because renewables are expensive, it’s just because we have an energy system that was designed for a world that no longer exists, so we’re having to upgrade the energy system and that requires a quite substantial investment.
“At the moment, the costs for doing that come off consumer bills. There is an option to put that on general taxation and that’s something that we would support at Centrica.”
Mr O’Shea acknowledged that the Chancellor was facing significant financial pressures, especially ahead of the upcoming spending review.
However, he said: “The reality is that we as a country have to pay for the upgrade of the energy infrastructure, either through bills or through general taxation.”
His comments come amid mounting scrutiny over so-called green levies, which are charges added to household energy bills to help fund renewables such as wind and solar.
These are seen as key to supporting Mr Miliband’s target of reaching Net Zero by 2050.
However, critics have accused the Energy Secretary of failing to tackle sky-high energy bills.
The Climate Change Committee, which advises the Government on its emissions targets, has said that green levies should be removed from household costs and shifted either on to gas bills or general taxation.
In a report last month, the quango said it was concerned that high electricity bills were preventing consumers from buying heat pumps and electric cars, which in turn was slowing down the energy transition.
Business leaders have also urged Mr Miliband to scrap green levies as British companies grapple with the highest electricity prices of anywhere in the developed world.
Worth reading in full.
“It’s not because renewables are expensive.” This man is in charge of Centrica. How can he not know that renewables are extortionately pricey? The energy industry seems to be stuck in a fantasy land of green wishful thinking, and it’s the rest of us paying the ever-growing price.
David Turver has an excellent new post out where he shows how much more expensive renewable energy is than the government has projected. It’s worth reading the whole post, but here are some key graphs:
To join in with the discussion please make a donation to The Daily Sceptic.
Profanity and abuse will be removed and may lead to a permanent ban.