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UK: New Green tax threat in energy bills 'deal'

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UK:  New Green tax threat in energy bills 'deal'

Ed Davey, the Environment Secretary, says there will be no cap on wind farms, as he insists that Green levies must stay and might have to be paid through taxes.

New taxes to pay for environmental schemes are being considered as part of a deal to cut household energy bills, it can be disclosed.

The taxpayer would foot the bill for two of the “green” schemes, all of which are currently paid for through a levy on gas and electricity bills.

The major energy suppliers have repeatedly told ministers the levies are pushing up household bills — for which they and the Government have been severely criticised.

Senior Tories have held talks with the companies and believe they have secured agreement that if the largest levy, the Energy Companies Obligation (ECO), is removed, immediate cuts in prices of up to seven per cent would be announced.

A deal could be struck in time to be announced as early as next month, allowing an average saving of as much as £75 a household.

Read more about what Ed Davey had to say at: