One of the issues that many homes and businesses have faced in the United Kingdom has been the continual rise of energy costs. An interesting balance has needed to be struck for some time; green energy sectors competing against traditional energy industries. Recently, there has has been a relative breakthrough in price hikes in direct relation to the green industry. The government has now decided to instead place green levies into the realm of general taxation as opposed to the energy sector alone.
Such a move was met favourably by most of the “Big Six” energy companies throughout the United Kingdom. In response, most of these companies likewise stated that they would reduce their monthly rates; a move purported to save the average homeowner up to fifty pounds a year. Analysts observe that as these cuts take effect, a reduction of approximately four per cent in the previous price hikes will occur.
Price hikes are not a new concept. On the contrary, home and business owners have had to pay continually higher rates during the last few years. This was more the result of an ongoing row in regards to energy prices (specifically in relation to green levies and carbon taxation statutes) than it had to do with supply and demand. This argument intensified when Labour leader Ed Milliband stated that he would freeze energy prices for no less than twenty months if he were to win the 2015 election. This announcement was met with both consternation and threats to further hike up prices within the energy sector.
Now that the green levies have been essentially scrapped in relation to their former focus on the energy sector alone, the money that companies expect to save will be partially filtered back directly to their customers. These happenings are seen as being but a small part of the larger backdrop of nationwide energy reform.
Under the Green Deal, homeowners in England and Wales can claim Cashback from Government on energy saving improvements like insulation and boilers. Packages could be worth over £1000 – the more you do, the more you get.
Obviously, the key task is for the United Kingdom to maintain a healthy balance between reducing its overall carbon footprint while providing viable energy plans for both the larger companies and the homeowners themselves.