It was formally announced today that the government aims to reduce Britain’s greenhouse gas emissions by at least 25% over the course of the next 12 years and in order to do that they want to impose a new Green Levy – also known as the Renewable Heating Incentive – on the fossil fuel energy providers of today. The money raised is to go towards subsidising solar panels, domestic wind turbines, wood burning boilers and insulation in over 7 million homes but it isn’t difficult to work out who is going to end up paying in the long run…and it isn’t the big, rich companies.

In order to pay the new levy, the energy suppliers will undoubtedly raise the cost of their services so that the consumers ultimately pay, but with millions of people already struggling to pay their gas and electricity bills, who is really going to benefit?

2008 saw the price of gas increase by 59% while the price of electricity rose by 26% and this means that the average household is now paying around £400 more for their fuel per annum than they were in 2007. And now the government want us to pay – albeit indirectly – even more so that we can fund the energy of the future. The question is how much is it going to cost us and when are we expected to start paying?

In an article posted in the Mail Online, the government claim that the package will have many benefits to householders of today and the future. It is said that this new incentive will reduce the amount of energy we waste whilst also dramatically cutting our current levels of greenhouse gas emissions. It will also put a stop to our reliance on imported fossil fuels and the ‘volatile’ nature of their prices. Lastly, the article mentions that millions of people will ultimately save money on their future fuel bills and this will be a welcome plus, but what about our fuel bills now?

People have already pointed out that some low-income families will end up subsidising green energy but will never actually use it. For example, people who live in high-rise apartment blocks are going to have no interest in solar panels and domestic wind turbines and so it is being argued that they shouldn’t be made to pay for them. Wood burning boilers cost an average of £7000 and solar panels cost upwards of £3000 for a single house. Then there’s geothermal heating which starts at £6000 and wind turbines that also cost in their thousands so even with grants and funding, there are going to be very few households that can afford to go green – now or in the future.

The new levy being imposed is undoubtedly going to be very unpopular, especially with those of us who already struggle to make ends meet each month, but at the end of the day what can we do? The government think it’s a great idea and we don’t get a say – but then again we never really do.

Guest Article by Clare Lynock