Reducing Energy Bills
Antony Nailer • 2 September 2022
News & Social Media / Post
The government can and must reduce energy bills.
| ITEM | COST |
|---|---|
| Gas Cost & Supply | £68.40 |
| Climate Levy | £20.00 |
| VAT (5%) | £5.00 |
| Company Profit | £6.60 |
The above table shows costings for every £100.00 of energy bills. Clearly with a mere £6.60 in every £100 of bills there is no scope to apply a windfall tax, all that will do is force the retail price even higher to protect the meagre profit.
Limiting the cap as Labour demands will only force energy companies to sell gas below cost price forcing more small ones out of business as happened last winter.
The cost of gas is out of our control because we are forced to purchase at least half our needs on the European open market. In the long term, a year or two, we could be fracking for gas and reducing our reliance on European supplies.
During the warmer months April to the end of September both electric and gas home usage is about 1/3rd of the months October to end of March.
So, if the annual energy cost is raised according to the energy cap to £3550 per annum then the bills for the warmer months will be about £148 a month. During the colder months the bills will be about £444 a month.
The obvious relief would be for Liz Truss to immediately remove both the Climate Levy and the VAT.
With removal of these taxes the bills will drop to £111 a month during the warmer
months and to £333 a month during the colder months. Overall, the annual bill would drop by around £887. That would be a welcome relief for everyone and not just those struggling to survive.
The UK Independence Party urges the new Prime Minister, probably Liz Truss, to
immediately remove the Climate Levy and VAT from fuels bills.
Antony Nailer
UK Independence Party – Spokesman for Energy
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