ECA calls on Government to ‘reform and rebalance’ energy levies and avoid cost-of-living crisis

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The ECA (Electrical Contractors Association) has responded to Ofgem’s announcement today that the energy price cap will rise by 54% to £1,971.

They welcome Rishi Sunak’s action to help taper the price rise by supporting middle- and lower-income households, but this is simply not enough. Government must urgently address the inequalities between gas and electricity levies, and reduce our reliance on imported natural gas from countries such as Russia.

Currently, 23% of household electricity bills go towards social and environmental policies, while only 3% of gas bills go towards these.

Reducing levies on electricity will have the added effect of reducing our national dependency on imported natural gas. This will prevent further exposure to volatility in global markets, making our energy prices less vulnerable to price spikes. It would also make us less reliant on supplies from other countries, such as Russia.

ECA has also recently called on Government to reduce VAT on battery storage systems, solar panels, and heat pumps, to encourage uptake and make it even more cost-effective for households to make the switch to these technologies and feel the benefits of reduced energy bills in the long run.

ECA works closely with industry and Government to influence the development of energy-related policy, including the drive to Net Zero. It promotes energy efficiency, renewable power, and the development of battery storage as a means to promote lower costs and greater energy security.

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