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REA produces a six point plan to tackle 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;
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Commercial Loan Scheme backed to support energy
suppliers and protect customers from additional costs;
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Iterates the need to accelerate the wider energy
transition to remove volatile gas prices from bills.
The Association for Renewable Energy and Clean Technology (REA)
have published a six point plan to help tackle the energy bill
crisis.
The plan 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 REA 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 REA has also 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 REA says the Government must provide catalysts
to improve the insulation of homes and to drive up the
installation of domestic renewables and clean technology to
reduce the threat of volatile gas prices. This can be done by
establishing an effective insulation scheme by Spring 2022 to
ensure all houses be EPC rating C at least by 2024/25, and to
remove VAT on domestic renewables and clean technology.
Finally, the REA has backed Octopus Energy’s calls to introduce a
short-term Commercial Loan Scheme to support energy suppliers
manage elevated wholesale gas prices and protect their customers
from additional costs.
The REA has also iterated the need to accelerate the wider energy
transition to remove volatile gas prices from bills.
Dr Nina Skorupska CBE, Chief Executive of the Association
for Renewable Energy and Clean Technology (REA), said:
“There is an immediate need to tackle the energy bill crisis
and we support the calls to suspend VAT and expand the
eligibility and increase the value of the Warm Homes Discount to
provide additional support for those who need it.
“Additionally, while the investment the ‘green’ levies
provide has been crucial for driving the energy transition
forward and must be protected, we believe that it would be more
appropriately sourced from general taxation.
“However, suspending VAT and boosting support schemes are
relatively short-term measures. What the Government needs to do
in parallel is provide a catalyst to better insulate our homes
and drive up the installation of domestic renewables and clean
technology to protect households from volatile gas prices.
“We want the financial burden of fossil fuels to be a
non-issue within five years - to do that the Government must
rapidly accelerate the shift to renewables and clean
technology.”
The REA’s six point plan is as follows:
- Move 'green' levies into general taxation - this must be
ring fenced at an equivalent value;
- Suspend VAT on energy bills for a year - mitigating
against rising energy bills;
- Expand eligibility and increase value of Warm Homes Discount
- ensuring additional support for those who need it;
- Remove VAT on all domestic renewable and clean technology -
help households move away from fossil fuels;
- Establish an effective home insulation scheme by Spring 2022
- ensure all houses to be EPC rating C at a minimum, where
technically feasible, by 2024/25;
- Introduce Commercial Loan Scheme - support energy
suppliers manage elevated wholesale gas prices and protect
customers from additional costs.
—ENDS—
Notes to editors
- In order to reduce volatile gas prices, the UK needs to
reduce the reliance on fossil fuel gas. This can be done most
quickly, cheaply and in line with Net Zero targets by procuring
new renewables capacity via six monthly CfD auctions and a three
year rolling time frame of future auction dates and allocated
budget, starting in summer 2022.
