23rd Oct 2013 13:39
LONDON (Alliance News) - UK Prime Minster David Cameron Wednesday announced a review of green energy taxes after admitting they have contributed to recent increases in the average energy bill.
The prime minister told member of parliament that household bills have been pushed up to "unacceptable" levels and he wants to cut back environmental regulations and charges which he said the last Labour government allowed to get out of control.
"We need to roll back the green charges that he put in place as energy secretary," Cameron said regarding opposition leader Ed Miliband.
Green taxes, he said, accounted for GBP112 of the average annual dual fuel bill, equivalent to 9% of what customers are paying, and could be reduced.
However, a document released by the Department of Energy and Climate Change in March stated that by 2020 the green energy policies, including building regulations, would actually bring down the average price of energy by GBP166 a year.
In response, Miliband said that Cameron is "changing his policy every day of the week" and reiterated his policy that a freeze in gas and electricity prices is necessary to control soaring prices.
Miliband has said Labour will freeze prices for two years if it is elected to power in 2015.
The decision came after former prime minister John Major called for a windfall tax on excess profits made by the largest energy companies on Wednesday.
Cameron also announced a new competition test for suppliers in order to limit any unacceptable levels of profits and make the market more fair for the consumer.
The news comes in the wake of major UK energy suppliers increasing their average prices for customers in recent weeks - RWE npower increased its prices an average of 10.4%, Centrica's British Gas and average of 9.2% and SSE increased prices an average of 8.2%.
Scottish Power Chief Executive Neil Clitheroe Tuesday said that his company will increase energy prices by the end of the year, as it was forced to pay a GBP8.5 million fine following a probe by UK energy regulator Ofgem into its selling practices.
Ofgem also said on Tuesday it is tightening the rules regarding fixed term energy contracts and wants to see simpler tariffs coming into force at the end of December.
By Tom McIvor; [email protected]; @TomMcIvor1
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