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Energy Bills Could Fall By £50 In Autumn Statement Measures

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Patrick Wintour, The Guardian

Ministers to shift funding for one of the green levies into general taxation and give firms more time to hit energy efficiency targets

Ministers believe they have found a way of cutting energy bills by as much as £50 in next week’s autumn statement by putting one of the green levies onto general taxation and allowing energy companies to take longer to fulfil other energy efficiency duties.

David Cameron had promised to “get rid of the green crap”, according to some newspaper reports, but the emerging compromise suggests ministers’ decisions are going to be less definitive.

Liberal Democrats have agreed to shift funding for the warm home discount, worth £135, into general taxation. The discount is mainly aimed at older energy users. This would see bills for all users come down by about £11 a year.

At the same time the controversial energy companies obligation (ECO) will be reformed so energy firms have longer to meet the targets set out in the scheme.

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