Politics · United Kingdom · 9 hrs ago

Dale Vince urges wider cuts to energy bills, claiming £400 annual savings

Dale Vince urges wider cuts to energy bills, claiming £400 annual savings

Dale Vince has urged the government to cut more energy-bill charges by removing VAT and standing charges from both gas and electricity.

Vince owns energy company Ecotricity and is a leading donor to the Labour Party.

The government has announced that VAT will be removed from the electricity element of bills over this winter, while Andy Burnham has asked ministers to consider scrapping gas standing charges.

Standing charges are fixed fees paid for being connected to the energy grid, even when a household uses no energy.

Vince says the wider changes could save a typical household £400 a year and help people in energy poverty, though changing standing charges could affect customers who need substantial energy for medical reasons.

The government is expected to announce energy-bill support in the Budget, likely focused on people most in need, as Ofgem’s price cap is forecast to rise by more than 27% to nearly £2,200 a year in January.

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What people are saying

Dale VinceEcotricity owner
The government should go the whole hog and remove VAT and standing charges on electricity and gas bills. That’s worth £400 on a typical yearly bill.
via Mirror
VAT is a luxury tax, energy is not a luxury, it makes sense to remove it.
via Mirror
People pay them whether they use energy or not. That affects people that use the least, the most.
via Mirror