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Energy bill payers could save £152 under new plans to cut ‘unfair’ taxes

Energy bill payers could save £152 under new plans to cut ‘unfair’ taxes

Fixed charges for each household connected to electricity and gas would be cut by almost half under the proposals, saving households more than £152 a year.

A young woman looking at her laptop(Getty)

It’s a burden none of us want to pay – and as the cost of living continues to take its toll on many, it’s a burden many of us simply can’t afford. Proposals have now emerged to reduce so-called fixed charges, which could lead to a huge reduction in your energy bills.

Under the plans, every household with electricity and gas connections could see their bills fall by £152 a year. And this would be partly financed by taking excess profits from shareholders.




The proposals could see fixed charges – the fixed amounts you have to pay regardless of how much you use – cut by just over £152 for electricity and gas. The cost would fall from £334.08 per year to just £183.02, a reduction of almost half (46%).

This would provide huge savings to struggling families and households. And top officials are demanding that these taxes – called an “unfair tax” by critics – be scrapped.

It’s important to emphasize that this is just a plan at this time. But with a general election on the horizon, everyone lining up to vote will likely give the recommendations some thought.

So, what exactly are we proposing? Well, campaigners have released a new discussion paper which is attracting a lot of attention – and those behind it want whoever the new government is to follow it.

Future Energy Associates explained how the fixed costs for each household connected to electricity and gas could be reduced. They claim the permanent electricity tariff would see a 32 per cent reduction, from £219.42 to £149.17 per year, while that of gas would fall from £114.66 to just £33.85 per year. year (71%).

Many people will wonder how this could become a reality. They say that to achieve these reductions, changes to Ofgem regulations would be necessary.

On top of this, there would need to be funding from the UK government as well as safeguards for low-income, high-consumption households, such as those who rely on energy for their medical needs. This would require a significant change in current policy – ​​but it could make a huge difference to ordinary households.

In addition, they propose to transfer part of the political costs to general taxation. They also suggest revising the ratio of operating costs paid through ongoing fees to unit rates in order to increase the amount of unit costs.