Energy Giants Warn Green Levies Could Add £300 to Bills by 2030
Household energy bills could rise by hundreds of pounds this decade due to soaring green levies, the UK’s largest gas and electricity suppliers have warned.
Senior executives from Octopus Energy, Centrica (owner of British Gas), E.On, EDF, and Ovo urged the Government to urgently review the levies that fund net-zero initiatives, warning they are becoming one of the main drivers of higher consumer costs.
Speaking before MPs on a Parliamentary committee on Wednesday, Rachel Fletcher, director of regulation at Octopus Energy, said that based on current trends, green levies, grid expansion, and system operation costs could add around £300 to a typical household’s electricity bill by 2030.
She said this meant that even if wholesale electricity prices were halved, bills would still rise by about £150 overall once policy and infrastructure costs were included.
The comments represent a setback for Energy Secretary Ed Miliband, who has pledged to cut household bills by £300 by the end of the decade, placing green energy investment at the centre of his strategy.
Just hours before industry leaders gave evidence, Mr Miliband had blamed high gas prices for the UK’s elevated electricity costs. However, energy executives warned that net-zero funding charges are becoming so burdensome that they risk offsetting any benefit from lower fuel prices.
Industry leaders said without reform, consumers could face persistently high bills, even as wholesale markets stabilise, underscoring the growing tension between energy affordability and the Government’s climate commitments.
