Written question asked by Baroness McGregor-Smith (Non-affiliated) on Thursday, 2 July 2026, in the House of Lords. It was due for an answer on Thursday, 16 July 2026. It was answered by Lord Whitehead (Labour) on Thursday, 16 July 2026 on behalf of the Department for Energy Security and Net Zero.

Energy: Taxation

Question: To ask His Majesty's Government how many levies are currently charged, directly or indirectly, to domestic energy consumers as a result of environmental or net-zero policies; and what is each levy expected to cost consumers in the current financial year.

Answer

The Renewables Obligation, Feed-in Tariff scheme, CfDs, Green Gas Levy and Nuclear RAB fund investment into home grown clean energy and account for 5% of the current price cap for a typical dual-fuel household.

Independent research that confirms that renewables can drive down electricity prices, already having reduced wholesale electricity prices by up to a quarter - or around £25/MWh - in 2024.

Over this parliament, we are working relentlessly to translate the much cheaper wholesale costs of clean power into lower bills for consumers: the transfer of the RO costs to public expenditure is a significant step towards rebalancing levies away from electricity.

The actions we took at the Budget, which has taken an average £150 of costs off energy bills, is now factored into bills for the years to come.

Secondary information

Type: Written question
Reference: HL1598
Session: 2026-27
Subjects: Consumers Costs Environment protection Energy Carbon emissions Taxation
Contains statistics: Yes
Link: View this Written question on www.parliament.uk

Energy: Taxation

Secondary information

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