PM announces green energy tax review

Written By Unknown on Rabu, 23 Oktober 2013 | 19.21

23 October 2013 Last updated at 07:58 ET

David Cameron has announced a review of green energy taxes after saying they had helped push up household bills to "unacceptable" levels.

The prime minister told MPs he wanted to "roll back" environmental regulations and charges which he blamed on the last Labour government.

A new competition test for suppliers would also be established, he added.

But Labour leader Ed Miliband said the PM was "changing his policy every day" and what was needed was a price freeze.

The two leaders clashed on what to do about rising energy prices for the third consecutive week after former prime minister Sir John Major called for a windfall tax on excess profits made by the largest energy companies.

Mr Cameron said the government was already intervening in the market to force firms to put customers on the lowest tariff and his focus was on dealing with the aspects of energy bills that the government could control.

Green taxes, he said, accounted for £112 of the average annual dual fuel bill, equivalent to 9% of what customers are paying, and could be reduced.

"I want more companies, I want better regulation, I want better deals for consumers. But yes, we also need to roll back the green charges that he (Ed Miliband) put in place as energy secretary."

The BBC's political editor Nick Robinson said he expected further details to be announced by Chancellor George Osborne in December's Autumn Statement.

However, he suggested one cabinet minister had told him earlier on Wednesday that such a review would not happen and that it was a case of "policy being made up on the hoof".


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