Environmental Charge to Increase Fundamentally by 2020

By 2020 it’s expected that environmental taxes on energy bills will rise to £12.6 billion according to the latest figures from the Office of Budget Responsibility (OBR)

Environmental taxes include things such as the Renewables Obligation (RO), Contracts for Difference (CfD), Feed-in Tariffs (FiTs), Capacity Market and Warm Home Discount. The increase is mainly due to the build up in the Contracts for Difference (CfD) scheme and the development of the Capacity Market scheme. 

The carbon reduction commitment (CRC) scheme which is due to close following the 2018-2019 compliance year, means businesses will report under the CRC for the last time by the end of July 2019 this scheme is also projected to add £0.5 billion to bills.

Latest