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Energy Bills To Hit £1,500 As Green Taxes Double

Tim Webb, The Times

Green taxes on energy bills will more than double by the end of the decade, despite a promise by David Cameron to “roll back” the charges, according to one of Britain’s biggest suppliers.

Tariffs to fund wind turbines and solar panels will drive the average gas and electricity bill towards £1,500 a year by 2020, npower says.

The claim by the German-owned company raises the prospect of another inflation-busting price rise after the next election, and threatens to break the uneasy truce agreed between the Government and the energy industry.

The warning came yesterday after MPs accused energy bosses of “utter complacency” over last month’s storms, which left hundreds of thousands of homes without power over Christmas. The energy networks had displayed an astonishing neglect towards their customers, MPs said.

In a report published today, npower says that the cost of green levies will fall only temporarily after the Government’s decision last month to remove some environmental tariffs from bills

In November the Prime Minister ordered ministers to ditch the “green crap” blamed for driving up costs. The following month George Osborne removed some green measures from bills, saying that the cost to suppliers of insulating homes could be spread over a longer period.

The move, which will cut £50 from the average yearly bill, was in response to Labour’s promise last year to freeze gas and electricity prices for 20 months if it wins the election.

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