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Energy Bills Expected To Fall £50 A Year Following Cuts To Green Levies

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Emily Gosden and Georgia Graham, The Daily Telegraph

Suppliers could announce a reduction in prices as soon as tomorrow following final negotiations between Big Six energy companies

Household energy bills are expected to fall by £50 a year as a result of cuts in green levies to be announced in George Osborne’s Autumn Statement next week.

Final negotiations between the Big Six energy firms and ministers are taking place this weekend and suppliers could announce a reduction in prices as soon as Sunday. Some are also expected to pledge that they will freeze prices until spring 2015, unless wholesale energy costs rise.

David Cameron promised on Friday that by “eroding” the levies on gas and electricity bills, the Government will deliver “sustainably low energy prices” and help households struggling with the rising cost of living. The Daily Telegraph has been given details of the reforms under negotiation ahead of the Chancellor’s appearance in the Commons on Thursday.

The Autumn Statement will be the culmination of the Coalition’s drive to answer Labour attacks over the cost of living and stop the issue dominating the agenda before the 2015 general election. Despite a return of growth, many households are still worse off in real terms than before the recent recession.

“Green” levies contribute £112 to the average annual household energy bill, the Government has said. Without reform, that could rise to £194 by 2020.

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