Chris O’Shea—the boss of Centrica, which owns British Gas—has warned about rumoured plans to shift so-called green taxes to gas bills.
Green levies are set by the regulator Ofgem and charged by energy companies to fund environmental policy commitments. Stripping the levies from electricity would make each unit of electricity cheaper, reducing the bills for electricity-only customers. If these levies were simply shifted to gas prices, however, it would increase the bills of customers with gas central heating. According to experts, the move would push up a typical gas bill by around £120 per year.
Speaking to The Telegraph, O’Shea claimed it would be “nonsense” if wealthier households who could afford alternative heating systems were subsidised by less well-off households with gas boilers, adding:
“I think those of us with the broadest shoulders should help those who have the most need. To put taxes on gas bills would be an abomination. It doesn’t make any sense.”
Speaking about the prospect of a decarbonised grid offering cheaper bills, O’Shea said:
“The energy transition is not cheap and not simple. If it were, then we would have done it already.”
Energy prices are subject to potential volatility in wholesale prices and possible increases from policy decisions. Where you can take control, however, is in how much energy you use. Improvements like thermostatic radiator valves and boiler replacements can cut your gas usage. Contact Xgas to arrange for heating engineers in Wrexham, Chester, Oswestry and other nearby places, as well as learn about potential financing plans to spread the cost.