Recommendation 29

The current apportioning of environmental levies disincentivises the switch to electrified low carbon heating solutions, such as heat pumps, because the running costs are greater than a gas boiler. As we have seen with the ongoing gas market crisis, increases in gas prices have increased energy bills, which has, in turn, disproportionately affected the fuel poor. The reapportioning of environmental levies should not further burden the fuel poor with an even greater increase in energy bills. We welcome the Government’s commitment in the Net Zero Strategy to shift or rebalance energy levies.