Will green energy levies be switched from electricity to gas bills?

Levies, including the feed-in tariff and Contracts for Difference will reportedly move from customers’ electric to gas bills

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The government is reportedly considering moving green energy surcharges from electricity to gas bills.

According to reports ministers will soon unveil plans that will see levies, including the feed-in tariff and Contracts for Difference (CfDs) move from customers’ electric to gas bills.

The feed-in tariff pays a household for the surplus energy it generates through technology such as solar panels.

The CfD scheme is a government mechanism that provides developers of renewable energy projects with high upfront costs and long lifetimes to protect them from unstable wholesale prices.

The plan which will allegedly launch next month is designed to make consumers who use gas boilers pay more.

A BEIS spokesperson said: “We want to encourage people to take up technologies such as heat pumps and electric vehicles. Affordability for consumers and taxpayers will be at the heart of our approach, as will ensuring protections remain in place for the most vulnerable.

“No decisions have been taken on our approach.”

Responding to reported government proposals, an Energy Networks Association spokesperson said: “Ensuring a fair and equitable transition for all customers will be key to the successful decarbonisation of home heating. A one-size-fits all approach will not work across our diverse geographies and customer base, so they will need choice and access to a range of net zero compatible technologies including hydrogen boilers, district heating, hybrid heating systems and heat pumps.

“This will require support from the private sector, taxpayers and billpayers and how that’s split is a decision for the government but it’s essential that all net zero heating technologies are treated fairly.

“It is vital to ensure that customers are protected so that no one ends up paying more and being inconvenienced by a product that may not work best for them.”

ELN has contacted BEIS for a response.

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