Trade body urges government to act now to avoid a national crisis

The ECA urges for a reform in the energy levy framework

Big Zero Report 2022

The Electrical Contractors’ Association (ECA) has called on the government to intervene now and take measures before the current crisis in the energy market becomes a national crisis.

The electrotechnical and engineering services trade body is asking to reform the energy levy framework.

The ECA suggests that taxes on electricity must be reduced – it said levies currently make up 23% of electricity charges and just 2% of gas charges.

The body said if these charges were reversed, it would be cheaper for households to switch from gas to electric.

ECA’s Energy and Emerging Technologies Solutions Advisor Luke Osborne said: “Because of several interconnected global factors, energy prices are steadily rising. These price hikes are frightening and could act as a flashpoint in the growing cost of living crisis.

“Household energy bills look set to rise even more by this spring, up to 50%, threatening to throw millions into fuel poverty.

“UK households are feeling the squeeze more than ever, and yet the solution to skyrocketing energy prices may be right under our noses.

“We at ECA are calling on the government to intervene now before this becomes a national crisis.”

A government spokesperson told ELN: “We recognise people are facing pressures with the cost of living, which is why we are taking action worth more than £4.2 billion and supporting vulnerable households through initiatives such as the £500 million Household Support Fund, Warm Home Discount, Winter Fuel Payments and Cold Weather Payments.

“The Energy Price Cap is currently insulating millions of consumers from high global gas prices. We will continue to listen to consumers and businesses on how to manage the costs of energy.

“Since 2010 we have delivered a 500% increase in the amount of renewable energy capacity connected to the grid. Thanks to our diverse mix of nuclear, gas and renewable technologies, the UK has one of the most reliable energy systems in the world.”

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