Energy: Taxation

(asked on 2nd July 2026) - View Source

Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government how many levies are currently charged, directly or indirectly, to domestic energy consumers as a result of environmental or net-zero policies; and what is each levy expected to cost consumers in the current financial year.


Answered by
Lord Whitehead Portrait
Lord Whitehead
This question was answered on 16th July 2026

The Renewables Obligation, Feed-in Tariff scheme, CfDs, Green Gas Levy and Nuclear RAB fund investment into home grown clean energy and account for 5% of the current price cap for a typical dual-fuel household.

Independent research that confirms that renewables can drive down electricity prices, already having reduced wholesale electricity prices by up to a quarter - or around £25/MWh - in 2024.

Over this parliament, we are working relentlessly to translate the much cheaper wholesale costs of clean power into lower bills for consumers: the transfer of the RO costs to public expenditure is a significant step towards rebalancing levies away from electricity.

The actions we took at the Budget, which has taken an average £150 of costs off energy bills, is now factored into bills for the years to come.

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