Use the Autumn Budget to lower electricity prices
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Adrian Ramsay MP co-signed this cross-party letter initiated by the MCS Foundation.
Dear Chancellor,
Subject: Use the Autumn Budget to lower electricity prices
The cost of living crisis is still hitting millions of households across Britain. Prices remain high, and the latest rise in the Energy Price Cap will only make things worse. The public wants to see action to reduce energy bills, which now ranks as the most worrying household expense amongst the population.
Britain has some of the highest electricity costs in Europe. A significant factor in keeping prices high is the social and environmental levies placed directly on households’ electricity bills. These levies make up 18% of a typical household’s electricity bill and disproportionately affect the most vulnerable. Households reliant on direct electric heating, such as electric radiators and fan heaters, are more likely to be in fuel poverty – yet they pay a far higher proportion of their income funding social and environmental levies.
Research from The MCS Foundation shows that moving these levies off electricity prices could save households, including those on direct electric heating and those with heat pumps, up to £300 on their bills.
Reducing the cost of electricity has the dual benefit of tackling fuel poverty while providing a significant financial incentive for households to electrify - a necessity for tackling climate change and meeting our net-zero obligations.
Social and environmental levies were introduced to raise revenue to support those in fuel poverty and boost renewable energy. While these areas are still in critical need of funding, retaining levies on electricity is now running directly counter to these initial aims, by disincentivising the switch away from fossil fuel heating.
While we appreciate that there are political and economic challenges that must be overcome, we believe now is the time for bold action. We urge you to use the Autumn Budget to reduce bills and incentivise electrification. There’s no time to waste.
Yours sincerely,
Adrian Ramsay MP co-signed this cross-party letter initiated by the MCS Foundation.
