UK Energy Secretary considers scrapping plan for £120 energy bill hike for hydrogen

Grant Shapps is reportedly considering abandoning the proposed plan to increase energy bills by £120 to fund the transition to hydrogen, following criticism from Conservative MPs

The government is reevaluating its plan to introduce a hydrogen levy, which would have added approximately £120 to British households’ energy bills.

Grant Shapps, the Energy Security and Net Zero Secretary is reportedly unconvinced about the necessity of the levy, following fierce opposition from Conservative members and concerns over the burden it would place on consumers.

Critics have accused the government of further straining the wallets of struggling households with the proposed charge, which aimed to fund the development of the emerging hydrogen industry.

An analysis conducted by the Onward think tank revealed that achieving a target of 10GW hydrogen production capacity by 2030 would require an estimated £50 billion investment.

Under the original proposal, dual fuel households would have seen an annual increase of around £118.

The levy, scheduled to take effect in 2025, was expected to escalate significantly by 2030, with the government admitting its intention to ramp up support for the hydrogen sector.

However, mounting speculation suggests that the Energy Bill, currently making its way through the parliamentary process, may undergo significant revisions.

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