An energy industry coalition has urged the government to take further action to combat the financial pressure caused by skyrocketing energy bills.
The group is led by the Association for Renewable Energy and Clean Technology (REA) and the Electrical Contractors’ Association (ECA) – nearly 25 companies and organisations have joined, including Octopus Energy, Ecotricity, Good Energy and the Energy Saving Trust.
The coalition calls for an “immediate relief” for households – it suggests this could be done by suspending VAT on energy bills for a year and moving ‘green’ levies into general taxation.
The government has also been urged to improve the insulation of homes and to accelerate the installation of domestic renewables.
Dr Nina Skorupska CBE, Chief Executive Officer of REA, said: “The government must take action before it is too late. That is why, in parallel with increasing support for households being pushed towards the poverty line, the government must urgently reduce the UK’s dependency on gas and other fossil fuels.”
Steve Bratt, Group Chief Executive Officer at ECA said: “Global shocks to the economy have sent energy prices skyrocketing. The price hikes are frightening and are set to plunge millions into fuel poverty.
“Yet, the solution to energy price volatility is right under our noses. By rebalancing the taxation system in favour of clean energy, fuel bills will come down.”
A government spokesperson told ELN: “We recognise the pressures people are facing with the cost of living, which is why we have set out a generous £21 billion package of support and the energy price cap continues to insulate millions of customers from volatile global gas prices.
“We are also accelerating our progress in upgrading the energy efficiency of England’s homes, investing over £6.6 billion to decarbonise homes and buildings and bringing in higher minimum performance standards to ensure all homes meet EPC band C by 2035.”