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Letter from REA, ECA and over 20 other industry
organisations urges the Government to take further action on
energy bill crisis;
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Plan includes measures to reduce energy bill costs and
increase support to those that need it;
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Proposals also outline the action required to insulate
homes and install domestic renewables and clean tech;
A coalition led by the Association for Renewable Energy and Clean
Technology (REA) and the Electrical Contractors' Association
(ECA) have written to the Government, urging them to take greater
action in tackling the energy bill crisis.
The letter has been signed by 25 companies and organisations
across the energy and construction industries including the likes
of Octopus Energy, Ecotricity, Good Energy, BEAMA and the Energy
Saving Trust.
The coalition is calling for an immediate relief for households,
and includes measures to reduce energy bill costs by moving
‘green’ levies into general taxation and to suspend VAT on energy
bills for a year. The coalition says that the investment the
levies provide has been crucial for driving the energy transition
forward and must be protected, but that this would be more
appropriate to be sourced from general taxation. The Government
has also been urged to expand the eligibility and increase the
value of the Warm Homes Discount to provide additional support
for those who need it.
In parallel, the coalition says the Government must provide
catalysts to improve the insulation of homes and to drive up the
installation of domestic renewables and clean technology. This
can be done by establishing an effective insulation scheme,
removing VAT on domestic renewables and clean technology, and
providing the support for the installation of millions of low
carbon heating devices.
The coalition say that the package of support would support the
transition to Net Zero, deliver new jobs and investment and
protect consumers from volatile energy prices.
Dr Nina Skorupska CBE, CEO of Association for Renewable
Energy and Clean Technology (REA), said:
“The Government must take action before it is too late. That
is why, in parallel with increasing support for households being
pushed towards the poverty line, the Government must urgently
reduce the UK’s dependency on gas and other fossil fuels.
“That means boosting home insulation, replacing gas boilers
with green alternatives, and ramping up the installation of
renewables and clean tech. This would support the transition to
Net Zero, deliver new jobs and investment and protect consumers
from volatile energy prices.”
“Our sector stands ready to deliver an energy future which is
independent, secure, and stable.”
Steve Bratt, Group Chief Executive Officer, Electrical
Contractors' Association (ECA) said:
“Global shocks to the economy have sent energy prices
skyrocketing. The price hikes are frightening and are set to
plunge millions into fuel poverty.
“Yet, the solution to energy price volatility is right under
our noses. By rebalancing the taxation system in favour of clean
energy, fuel bills will come down.
“Clean electricity has the advantage of being a more secure,
stable and cheaper energy source than other fuels”.
“Greater government investment in renewable energy will
generate cheaper electricity, and bring long term stability and
relief from spiralling prices.”
The coalition is urging the Government to:
- Move ‘green’ levies into general taxation – it is crucial
that this is ring fenced at an equivalent value;
- Suspend VAT on energy bills – saving households £100 this
year;
- Expand eligibility and increase value of Warm Homes Discount
– ensuring additional support for nine million households as
fuel poverty increases;
- Remove VAT on all domestic renewable and clean technology
– reducing costs and helping households, landlords and local
authorities move away from fossil fuels;
- Establish an effective home insulation scheme – ensure
all houses to be EPC rating C at a minimum, where technically
feasible, by 2024/25;
- Deliver an ambitious domestic heat decarbonisation policy
- expand the Boiler Upgrade Scheme to cover the installation
of millions of low carbon heating devices.
