Andrew Eldred, Deputy CEO at the Electrical Contractors’ Association (ECA) is one of more than 50 signatories in a letter to the chancellor, Rachel Reeves, calling for the government to prioritise reducing electricity levies to help achieve greater economic growth.
The letter states: “Energy price increases since 2022 have been predominantly driven by increases in gas prices. However, taxation and levies also artificially inflate electricity bills by around 25%. As well as increasing bills, this deters investment in electrifying our economy. Electrification is crucial to lowering energy bills, and is the only option for keeping energy bills stable and low in the long-term.”
The letter’s signatories also include Energy UK, Dimplex, Vaillant Group, Solar Energy UK, BEAMA and Solar Energy. They are asking the government to shift the policy costs of legacy decarbonisation schemes from energy bills to general taxation. According to Energy UK, this change could lower business electricity costs and reduce household bills by up to £370 a year.
Andrew Eldred said:
“ECA has long advocated for the reform of levies on electricity by rebalancing of taxation between electricity and gas. In Britain we are paying some of the highest electricity prices in the world, slowing down the adoption of electrification in heat and transport. ECA recently held a Parliamentary roundtable event on our Blueprint for Electrification report, which is a practical roadmap for delivering a fully electrified, low carbon economy. Attendees agreed that if we want to accelerate electrification and reach Clean Power 2030, we must first tackle the high cost of electricity. We hope that the Autumn Budget will provide a way forward on this.’
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Rob Shepherd (author)
Rob is Consulting Editor for InstallerELECTRIC. He is a well-respected journalist with a strong history in the electrical sector.
