- Letter from REA, ECA and over 20 other industry organisations urges the Government to take further action on energy bill crisis;
- Plan includes measures to reduce energy bill costs and increase support to those that need it;
- Proposals also outline the action required to insulate homes and install domestic renewables and clean tech;
A coalition led by the Association for Renewable Energy and Clean Technology (REA) and the Electrical Contractors’ Association (ECA) have written to the Government, urging them to take greater action in tackling the energy bill crisis.
The letter has been signed by 25 companies and organisations across the energy and construction industries including the likes of Octopus Energy, Ecotricity, Good Energy, BEAMA and the Energy Saving Trust.
The coalition is calling for an immediate relief for households, and includes measures to reduce energy bill costs by moving ‘green’ levies into general taxation and to suspend VAT on energy bills for a year. The coalition says that the investment the levies provide has been crucial for driving the energy transition forward and must be protected, but that this would be more appropriate to be sourced from general taxation. The Government has also been urged to expand the eligibility and increase the value of the Warm Homes Discount to provide additional support for those who need it.
In parallel, the coalition says the Government must provide catalysts to improve the insulation of homes and to drive up the installation of domestic renewables and clean technology. This can be done by establishing an effective insulation scheme, removing VAT on domestic renewables and clean technology, and providing the support for the installation of millions of low carbon heating devices.
The coalition say that the package of support would support the transition to Net Zero, deliver new jobs and investment and protect consumers from volatile energy prices.
Dr Nina Skorupska CBE, CEO of Association for Renewable Energy and Clean Technology (REA), said:
“The Government must take action before it is too late. That is why, in parallel with increasing support for households being pushed towards the poverty line, the Government must urgently reduce the UK’s dependency on gas and other fossil fuels.
“That means boosting home insulation, replacing gas boilers with green alternatives, and ramping up the installation of renewables and clean tech. This would support the transition to Net Zero, deliver new jobs and investment and protect consumers from volatile energy prices.”
“Our sector stands ready to deliver an energy future which is independent, secure, and stable.”
Steve Bratt, Group Chief Executive Officer, Electrical Contractors’ Association (ECA) said:
“Global shocks to the economy have sent energy prices skyrocketing. The price hikes are frightening and are set to plunge millions into fuel poverty.
“Yet, the solution to energy price volatility is right under our noses. By rebalancing the taxation system in favour of clean energy, fuel bills will come down.
“Clean electricity has the advantage of being a more secure, stable and cheaper energy source than other fuels”.
“Greater government investment in renewable energy will generate cheaper electricity, and bring long term stability and relief from spiralling prices.”
The coalition is urging the Government to:
- Move ‘green’ levies into general taxation – it is crucial that this is ring fenced at an equivalent value;
- Suspend VAT on energy bills – saving households £100 this year;
- Expand eligibility and increase value of Warm Homes Discount – ensuring additional support for nine million households as fuel poverty increases;
- Remove VAT on all domestic renewable and clean technology – reducing costs and helping households, landlords and local authorities move away from fossil fuels;
- Establish an effective home insulation scheme – ensure all houses to be EPC rating C at a minimum, where technically feasible, by 2024/25;
- Deliver an ambitious domestic heat decarbonisation policy – expand the Boiler Upgrade Scheme to cover the installation of millions of low carbon heating devices.
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Notes to editors
Read the coalition’s letter here: 180322 Letter to Rt Hon Rishi Sunak MP Finding the solutions to the energy bill crisis.
The full list of signatories include:
Dr Nina Skorupska CBE, CEO, REA
Steve Brett, Group Chief Executive Officer, ECA
Dr Howard Porter, CEO, BEAMA
David Frise, CEO, BESA
Julia Evans, CEO, BSRIA
Gareth Williams, Managing Director, Caplor
Alasdair Peppe, Director, Dunster
Darren Williams, Chief Executive, Eco2 Ltd
Asif Rehmanwala, CEO, Ecotricity
Tessa Ogle, CEO, Electrical Industries Charity
Jo-Jo Hubbard, CEO, Electron
Stew Horne, Head of Policy, Energy Saving Trust
Chris Yates, Managing Director, FETA
Simon Heyes, CEO, Flexitricity
Giles Gibbons, Founder, Good Business
Nigel Pocklington, CEO, Good Energy
Dominic Schofield, Managing Director, Mint Green Sustainability
Martin Wright, Chief Executive, Minus 7
Rachel Fletcher, Director of Regulation and Economics, Octopus Energy
Joe Warren, CEO, Powervault Limited
Virginia Graham, CEO, REAL
Neil Harrison, Director, Reheat
Charles Perry, Partner, RISE
Alan Wilson, Managing Director, SELECT
Chris Hewett, Chief Executive, Solar Energy UK
About the Association for Renewable Energy and Clean Technology (REA):
The Association for Renewable Energy and Clean Technology (known as the REA) is the UK’s largest trade association for renewable energy and clean technologies with around 550 members operating across heat, transport, power and the Circular Economy. The REA is a not-for-profit organisation representing fourteen sectors, ranging from biogas and renewable fuels to solar and electric vehicle charging. Membership ranges from major multinationals to sole traders.
For more information, visit: www.r-e-a.net
About ECA and its members:
ECA is the UK’s largest trade association representing electrical, electrotechnical and other engineering contractors in England, Wales and Northern Ireland at regional, national and European level. ECA member-companies are rigorously assessed before membership is approved.
Member firms have a combined turnover in excess of £6 billion annually. Member firms carry out design, installation, inspection, testing, maintenance and monitoring activity across the domestic and commercial sectors. This ranges from power and lighting to data communications, to energy efficiency and renewables, as well as the design and installation of cutting-edge building control technologies
ECA’s near 2,700 members range from SME electrical firms to nationwide engineering contractors and building services firms that employ thousands of professionals on major UK projects. ECA members also support over 5,000 apprentices annually.