How will the VAT cut affect my electricity bill?
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Our new Prime Minister, Andy Burnham, just announced the removal of VAT from domestic electricity bills from October. It’s initially for just six months but there’s every chance this becomes permanent, in our view.
All of our customers will see their electricity bills fall, by the full 5% of VAT cut - starting October. All customers, all tariffs - just to be clear.
For an average household as defined by Ofgem, this should result in a £45 yearly saving, but the exact amount depends on how much electricity you use.
At about £1 per week it’s small but we see it as a step in the right direction - we’re arguing now that it should extend to gas bills too - and we’re also arguing for the removal of standing charges.
There are far bigger opportunities for the ‘new’ government - energy market reform in the form of three bold but simple steps could halve our energy bills. We’ve published a paper on that.
For several years we’ve been campaigning to 'Break the Link' between the price of fossil gas and that of green electricity. This is one of our three proposed reforms and by far the most impactful, we’re stepping up our efforts now in the belief that our new government are persuadable on this issue. We’ve published a report on the benefits of ‘Breaking The Link'.
That’s it, other than to say thank you for being with us - and for making a difference.
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