Renewable Energy Association seeks to tackle fuel bills

The Association for Renewable Energy and Clean Technology have published a six point plan to help tackle the energy bill crisis.
A close-up of a radiator.

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.

The REA has also 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, and reiterated 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:

  1. Move ‘green’ levies into general taxation – this must be ring fenced at an equivalent value;
  2. Suspend VAT on energy bills for a year – mitigating against rising energy bills;
  3. Expand eligibility and increase value of Warm Homes Discount – ensuring additional support for those who need it;
  4. Remove VAT on all domestic renewable and clean technology – help households move away from fossil fuels;
  5. 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;
  6. Introduce Commercial Loan Scheme – support energy suppliers manage elevated wholesale gas prices and protect customers from additional costs.

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