Government plans new tax on Gas suppliers to support its green energy drive

Green gas levy

Impact on Energy Bills

Despite what the energy minister said, there will be some expenses that will have to be passed onto consumers. Energy bills are forecast to rise with the government predicting that the measures will add an extra £6.90 onto an annual gas bill.

With many struggling in the current economic climate and now facing new covid-19 related restrictions any rise to energy bills is likely to be deeply unpopular with the wider population.

The government has ‘committed’ to make sure that the impact on energy bills will be kept as low as possible and plans are said to be in the works to introduce a new framework that could include an annual budget cap to ensure that energy bills do not surge higher unexpectedly.

Read more: Energy Billing – How does it work?

NetZero

Charlotte Morton, Chief Executive of the Anaerobic Digestion and Bioresources Association (ADBA) said:

“Fully deployed, the biomethane industry could deliver a 6% reduction in the UK’s greenhouse gas emissions by 2030 and provide heating for 6.4 million homes, creating tens of thousands of jobs and boosting energy and food production security.

‘As biomethane is already compatible with our current gas grid, it is also a particularly cost-effective way to decarbonise the UK’s heating infrastructure.

‘We welcome this consultation and the commitment shown by BEIS to integrate biomethane into the government’s net zero strategy. With the right policy support, there is much more this industry could contribute to the green economy and to achieving the UK’s 5th Carbon Budget, over the next decade, but this represents a significant step in the right direction.”

The government is seeking views on the policy options for the new levy until 2nd November 2020.

The Green Gas Levy is expected to be launched in in the third quarter of 2021, with the first levy collection set for April 2022.

Further Reading

Battery Electric Vehicles outsold diesel as COVID-19 continues to hammer car market

Green Energy Tariffs rise in importance for consumers, cost of energy bills remains top concern

Is ‘Green Energy’ really good for the environment?

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