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Madness: Green Levies On Energy Bills To Double By 2020

Priyanka Shrestha, Energy Live News

The cost of environmental levies on energy bills to support the UK’s low carbon transition is expected to rise to £12.6 billion by 2020.

That’s an increase from £6.9 billion in 2016/17 and could rise to £13.5 billion in 2021/22, according to latest figures from the Office of Budget Responsibility (OBR).

It expects household energy bills to “rise faster than previously assumed” in the near term.

Environmental taxes include levy-funded spending policies such as the Renewables Obligation (RO), Contracts for Difference (CfD), Feed-in Tariffs (FiTs), Capacity Market and Warm Home Discount.

The OBR’s report states the increase mainly reflects the build-up in the CfD scheme – which is designed to boost renewable energy – and the development of the Capacity Market scheme which focuses on security of supply.

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