{"id":264276,"date":"2023-06-28T11:05:18","date_gmt":"2023-06-28T09:05:18","guid":{"rendered":"https:\/\/climatescience.press\/?p=264276"},"modified":"2023-06-28T11:05:28","modified_gmt":"2023-06-28T09:05:28","slug":"does-the-government-understand-its-own-green-levies","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=264276","title":{"rendered":"Does the Government understand its own Green Levies?"},"content":{"rendered":"\n
\"\"
Double exposure graphic of business people working over wind turbine farm and green renewable energy worker interface. Concept of sustainability development by alternative energy.<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

From NET ZERO WATCH<\/a><\/p>\n\n\n\n

By Dr John Constable<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

As reported by the\u00a0Sunday Telegraph (25.06.23)<\/a>, the government is silently reapplying the cost of green levies to domestic consumer energy bills, reversing the decision taken under the Truss government to fund these costs from general taxation.<\/h5>\n\n\n\n

<\/p>\n\n\n\n

While it is our view that these levy costs should be cut entirely, rather than shuffled from one place to another, it is obviously preferable that they should funded from progressive taxation rather than drawn from consumer energy bills, where the effects are sharply regressive, since energy bills are a much larger part of a low-income household\u2019s total expenditure than that of a better off household.<\/p>\n\n\n\n

It is difficult to believe that Mr Sunak would knowingly revert to direct levies with regressive impacts on low-income households, and it may be a simple mistake arising from misunderstanding of the character and scale of the climate change policies.<\/p>\n\n\n\n

Certainly, the remarks of the Prime Minister\u2019s official spokesman in defence of this decision suggest that the No. 10 advisors do not understand the issues. Mr Sunak\u2019s spokesman has been quoted in the press (Telegraph 27.06.23)<\/a><\/strong> as remarking that:<\/p>\n\n\n\n

\n

The crucial point is that the levies not only help bring down energy bills over time \u2013 they drive investment in renewables \u2013 but they also help the public, those hardest hit: so the \u00a3150 in the warm homes discount, those on pension credit, those on low income, so that\u2019s providing that.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Firstly, only the most na\u00efve would now think that investment in renewables will reduce costs. As is well known, at least outside Downing Street, the capital and operating costs of both wind and solar remain stubbornly high, their productivity is very low, and the grid expansion and system management costs of randomly intermittent wind and solar are also very high (Balancing Services now amount to about \u00a34 billion per year, largely due to wind and solar). Renewables are, as anyone familiar with their physics would expect, extremely expensive and certain to remain so.<\/p>\n\n\n\n

Secondly, the Prime Minister\u2019s spokesman appears to be confused about the character and scale of the \u00a3150 Warm Homes Discount on the electricity bills of low-income households. This is a cross-subsidy funded by levies on the bills of other consumers, but it is not a green levy in the strict sense, and is no longer included amongst the Environmental Levies as listed by the OBR.<\/p>\n\n\n\n

In any case, the Warm Homes Discount amounts to only about \u00a3475m a year in total and is awarded to only around 2 to 3 million households, a benefit which pales into insignificance besides the scale of green levies proper: the Renewables Obligation, the Contracts for Difference, the Feed-in Tariff, the Capacity Market and the Green Gas levy.<\/p>\n\n\n\n

Together, these levies cost consumers approximately \u00a38.5 billion a year, and affect all 26 million households, both through their electricity bills and through general cost of living, as industrial and commercial consumers pass on their share of these costs in the prices of goods and services, a total impact of over \u00a3300 per household.<\/p>\n\n\n\n

On top of this there is the UK Emissions Trading Scheme, currently adding about \u00a36 billion a year to the costs of doing business in the UK, depressing wages and rates of employment and adding yet another layer of indirect green taxation to the cost of living.<\/p>\n\n\n\n

Dr John Constable, NZW\u2019s energy director said: <\/p>\n\n\n\n

\n

The Government\u2019s decision to silently reapply green levy costs to bills is in itself a retrograde step and a mistake, but the misinformation in defence of this decision suggests a negligent lack of engagement with the reality of their own climate policies. Carelessness of this kind is crying out for punishment at the ballot box.\u201d<\/p>\n<\/blockquote>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

As reported by the\u00a0Sunday Telegraph (25.06.23), the government is silently reapplying the cost of green levies to domestic consumer energy bills, reversing the decision taken under the Truss government to fund these costs from general taxation.<\/p>\n","protected":false},"author":121246920,"featured_media":264281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691818076,691818346,691820114,691818154,691818130],"class_list":["post-264276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-co2","tag-green-levies","tag-mr-sunak","tag-net-zero","tag-renewables","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/00-Net-Zero78.jpg?fit=1282%2C659&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-16Kw","jetpack-related-posts":[{"id":281848,"url":"https:\/\/climatescience.press\/?p=281848","url_meta":{"origin":264276,"position":0},"title":"Foisting green levies onto gas bills will cause public health crisis, Sunak warned","author":"uwe.roland.gross","date":"10\/04\/2023","format":false,"excerpt":"Green blob From Net Zero Watch Green Conservative minister is undermining Sunak\u2019s attempts to come clean with the public over Net Zero Campaign group Net Zero Watch has condemned Government plans to move renewables levies onto gas users. Speaking at the Conservative Party conference in Manchester, energy minister Lord Callanan\u00a0announceda\u2026","rel":"","context":"In \"climate extremists\"","block_context":{"text":"climate extremists","link":"https:\/\/climatescience.press\/?tag=climate-extremists"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00how-to-draw-blobby-from-hotel-transylvania_5e4cf2e4245a96.08722968_125289_5_3.png?fit=1200%2C952&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00how-to-draw-blobby-from-hotel-transylvania_5e4cf2e4245a96.08722968_125289_5_3.png?fit=1200%2C952&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00how-to-draw-blobby-from-hotel-transylvania_5e4cf2e4245a96.08722968_125289_5_3.png?fit=1200%2C952&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00how-to-draw-blobby-from-hotel-transylvania_5e4cf2e4245a96.08722968_125289_5_3.png?fit=1200%2C952&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00how-to-draw-blobby-from-hotel-transylvania_5e4cf2e4245a96.08722968_125289_5_3.png?fit=1200%2C952&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":264116,"url":"https:\/\/climatescience.press\/?p=264116","url_meta":{"origin":264276,"position":1},"title":"Rishi Sunak to Hit Households With \u00a3170 Net Zero Levy Within Days","author":"uwe.roland.gross","date":"06\/27\/2023","format":false,"excerpt":"Households will pay a \u00a3170-a-year Net Zero levy on energy bills in the coming days, with Rishi Sunak and Jeremy Hunt accused of \u201cslyly\u201d shifting costs back to consumers. The\u00a0Telegraph\u00a0has the story.","rel":"","context":"In \"climate alarmism\"","block_context":{"text":"climate alarmism","link":"https:\/\/climatescience.press\/?tag=climate-alarmism"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/00eilmeldung-rishi-sunak-ist-geset.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/00eilmeldung-rishi-sunak-ist-geset.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/00eilmeldung-rishi-sunak-ist-geset.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/00eilmeldung-rishi-sunak-ist-geset.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/00eilmeldung-rishi-sunak-ist-geset.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":415697,"url":"https:\/\/climatescience.press\/?p=415697","url_meta":{"origin":264276,"position":2},"title":"Green Subsidies Set to Rocket Under\u00a0Miliband","author":"uwe.roland.gross","date":"12\/02\/2025","format":false,"excerpt":"The OBR have now published their full Economic & Fiscal Outlook, following the new Budget.","rel":"","context":"In \"energy bills\"","block_context":{"text":"energy bills","link":"https:\/\/climatescience.press\/?tag=energy-bills"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQO-URnDA16E2zgsgl0K6ngYlvm7j3T2_rQ9j_Mu4QX-8UmitoVr_3-IZzcnjCVTuxfvjS9bJ9okfSq5JVwCgvTHMeQXy41jX94xO6CgABSAuh3gJB-bglJKjmNuTsAA1iozk0vwCtEJGIf7Pz-LoyUg7UZpSQ-1.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQO-URnDA16E2zgsgl0K6ngYlvm7j3T2_rQ9j_Mu4QX-8UmitoVr_3-IZzcnjCVTuxfvjS9bJ9okfSq5JVwCgvTHMeQXy41jX94xO6CgABSAuh3gJB-bglJKjmNuTsAA1iozk0vwCtEJGIf7Pz-LoyUg7UZpSQ-1.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQO-URnDA16E2zgsgl0K6ngYlvm7j3T2_rQ9j_Mu4QX-8UmitoVr_3-IZzcnjCVTuxfvjS9bJ9okfSq5JVwCgvTHMeQXy41jX94xO6CgABSAuh3gJB-bglJKjmNuTsAA1iozk0vwCtEJGIf7Pz-LoyUg7UZpSQ-1.jpeg?fit=1200%2C1200&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQO-URnDA16E2zgsgl0K6ngYlvm7j3T2_rQ9j_Mu4QX-8UmitoVr_3-IZzcnjCVTuxfvjS9bJ9okfSq5JVwCgvTHMeQXy41jX94xO6CgABSAuh3gJB-bglJKjmNuTsAA1iozk0vwCtEJGIf7Pz-LoyUg7UZpSQ-1.jpeg?fit=1200%2C1200&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2025\/12\/0AQO-URnDA16E2zgsgl0K6ngYlvm7j3T2_rQ9j_Mu4QX-8UmitoVr_3-IZzcnjCVTuxfvjS9bJ9okfSq5JVwCgvTHMeQXy41jX94xO6CgABSAuh3gJB-bglJKjmNuTsAA1iozk0vwCtEJGIf7Pz-LoyUg7UZpSQ-1.jpeg?fit=1200%2C1200&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":262201,"url":"https:\/\/climatescience.press\/?p=262201","url_meta":{"origin":264276,"position":3},"title":"Net Zero Watch welcomes Government U-turn on heating levy","author":"uwe.roland.gross","date":"06\/15\/2023","format":false,"excerpt":"Net Zero Watch has welcomed the Government\u2019s apparent U-turn on plans for a new levy on household bills. The levy, introduced as part of the drive to \u201cNet Zero\u201d, was designed to fund the development of hydrogen as an alternative to gas heating. However, it would have hit households with\u2026","rel":"","context":"In \"CO2\"","block_context":{"text":"CO2","link":"https:\/\/climatescience.press\/?tag=co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0shutterstock_249974521.jpg?fit=1200%2C795&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0shutterstock_249974521.jpg?fit=1200%2C795&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0shutterstock_249974521.jpg?fit=1200%2C795&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0shutterstock_249974521.jpg?fit=1200%2C795&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0shutterstock_249974521.jpg?fit=1200%2C795&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":419601,"url":"https:\/\/climatescience.press\/?p=419601","url_meta":{"origin":264276,"position":4},"title":"Gas Boiler Owners \u201cWill Subsidise Heat Pump Users\u201d With New Levy Under Ed Miliband\u2019s \u00a315 Billion Energy Plans","author":"uwe.roland.gross","date":"01\/03\/2026","format":false,"excerpt":"This story claim that, as part of Energy Secretary Ed Miliband's upcoming \u00a315 billion Warm Homes Plan, the UK government is considering a new green levy of around \u00a330 per year on gas bills. This would effectively mean gas boiler owners subsidise lower electricity costs, making heat pumps more economically\u2026","rel":"","context":"In \"Energy Secretary Ed Miliband\"","block_context":{"text":"Energy Secretary Ed Miliband","link":"https:\/\/climatescience.press\/?tag=energy-secretary-ed-miliband"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQPerHIO-8CNWqosa8JatiEs5bLgweA8O6uwleP3fgHvqFI9n69-FzrSEGHTMEgdd6FOqYRTY7UlhtPDQkTx8QyHL0kIotVZr07nFeBL4QsFALxgCDWa1wJxQHtvgPu6jX3udC0tIer_tUBTgMDGH0p3LgMsbw.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2026\/01\/AQPerHIO-8CNWqosa8JatiEs5bLgweA8O6uwleP3fgHvqFI9n69-FzrSEGHTMEgdd6FOqYRTY7UlhtPDQkTx8QyHL0kIotVZr07nFeBL4QsFALxgCDWa1wJxQHtvgPu6jX3udC0tIer_tUBTgMDGH0p3LgMsbw.jpeg?fit=1200%2C1200&ssl=1&resize=350%2C200 1x, 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