The National Audit Office has been called upon by the largest consumer group Which? to examine green levies that pay for renewable energy subsidies and home insulation schemes. Richard Lloyd the Executive Director of Which? identified that consumers are in fact being taxed through their energy bills to allow for the improvements in the energy infrastructure.
These green subsidies for wind farm and other low carbon measures are estimated to be a contribution of about £185 to an average household’s annual bill of £1,247, with this figure anticipated to rise to £329 from an average household bill of £1,487 by 2020.
Consumers need to feel confident with their energy prices and this will not happen if the UK government is concealing these costs. These green levies are just taxes but without the name, so the government and regulators in the industry need to ensure that the costs are transparent as they should be subject to the same amount of scrutiny as any other spending funded by UK taxpayers.
The Department of Energy and Climate Change (DECC) has released figures showing that consumers would be paying £166 more per year by the end of the decade if the green levies were not in place for energy saving measures.
This autumn the National Audit Office is set to publish a one off inquiry into the amount of subsidies that is planned for renewable energy plants that will be granted from 2017 under the governments new Energy Bill. Which? feel the NAO should investigate the green levies and subsidies each year.