Ofgem figures show green taxes on energy companies have nearly doubled in just two years, adding £91.50 to the average bill.
Green taxes are charged by the government to help pay for a variety of green measures including the Carbon Emissions Reduction Target (CERT). These costs make up part of the average energy bill.
How your energy bill breaks down
Environmental schemes subsidised by household gas and electricity bills include:
- Feed-in Tariff scheme (FiTs)
- Carbon Emissions Reduction Target (CERT)
- Community Energy Saving Programme (CESP)
- The Renewables Obligation (RO)
- EU Emissions Trading Scheme (ETS)
Speaking to the Telegraph, a spokesman for the Department of Energy and Climate Change (DECC), said that wholesale gas prices were the most important factor behind energy price rises:
“By comparison social and environmental measures represent a small fraction of the bill. Those policies are actually part of the solution, because they’re about helping people insulate their homes and cut energy waste, and developing a more diverse, home-grown mix of energy sources for the UK so we can reduce our huge reliance on expensive imported fossil fuels.
“That’s a long term challenge. In the short term, our advice to customers facing higher energy bills is to shop around for a better deal, check that you are still on the best tariff and if you find you are not, take your business elsewhere.”
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