Responding to the announcement in the Autumn Budget that most of the cost of the Renewables Obligation will no longer be applied to electricity bills and that the ECO energy efficiency scheme will end in April 2026, reducing the average household bill by around £150 next year, Simon Virley CB, Vice Chair and Head of Energy and Natural Resources at KPMG UK, said:
“Shifting some green policy levies off electricity bills is an important step that will be welcomed by those struggling with the cost of living. Making electricity relatively cheaper compared to gas will support households making greener choices, including the uptake of electric vehicles and heat pumps.
“However, with network charges and subsidy costs set to push bills higher next April, the net reduction in energy bills may be less than the headline figures suggested in the Budget.
“The cheapest energy is the energy that we don’t use, so the abolition of the ECO scheme leaves a gap in the UK’s energy efficiency strategy, raising important questions about how the Government plans to deliver permanent reductions in household energy bills.”
-ENDS-
Notes to Editors:
For further information please contact:
KPMG UK Media Relations
Claire Barratt
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E: claire.barratt@kpmg.co.uk
KPMG UK media relations
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KPMG LLP, a UK limited liability partnership, operates across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.99 billion in the year ended 30 September 2024.
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